Document:

EX 10.1

EXHIBIT 10.1 BERGEY ROAD LEASE

THIS LEASE, is executed at 2880 Bergey Road, Suite D, Hatfield, PA. this __10__day of July, 2014, by and between _Bergey Road Industrial Associates, 2880 Bergey Road, Suite D, Hatfield, PA. 19440, (“Lessor”) and Torotel Products, Inc., 620 N. Lindenwood Drive, Olathe, KS  66062 (“Lessee”).

		
	1.
	Premises

1.01    Lessor hereby leases to Lessee and Lessee hires from Lessor, on the terms, covenants and conditions set forth herein, those premises described in Exhibit “A” attached hereto and made a part  hereof (the “Leased Premises”), located in the building, the location of which also is indicated on Exhibit “A” ( the “Building”), the Leased Premises comprising approximately 5,000 square feet of the total square feet of floor space in the Building, the Building and Leased Premises being known and numbered as  Suite C, 2880 Bergey Road,  Hatfield    PA   19440 .      

		
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	Before the term of this Lease begins, Lessor shall perform and complete the alterations and other improvements ( the “Work”) at the Leased Premises in accordance with the plans and specifications set forth in Exhibit “B” hereto and such other working drawings and specifications (if any) as may be reasonably necessary, which shall be prepared by Lessor and which shall be in substantial conformity, with the plans and specifications set  forth in Exhibit “B”, but if such working drawings and specifications are not so in conformity, they shall be subject to the approval of the Lessee, such approval to be considered to have been given unless Lessee, within six (6) business days after the submission of such working drawings and specifications to it, notifies Lessor in writing of Lessee’s disapproval and the reasons therefore.  All other work to be done or performed in or about the Leased Premises shall be by Lessee at Lessee’s sole cost and expense and in accordance with the provisions of Article 7 hereof.  If Lessor is unable to complete the Work on or before N/A , 2014 (the “Completion Date”), or if Lessor for any reason has not completed construction of the building of which the Leased Premises is a part on or before the Completion Date,  Lessee shall have as its sole remedy the option of canceling this Lease by giving written notice to that effect to Lessor within ten (10) days after the Completion Date; provided, however, that if the Work ( or the building of which the Leased Premises is a part) is not completed by the Completion Date because of Lessee’s unreasonable withholding of its approval of the working drawings and specifications or other act or omission of Lessee or because of strikes, lockout or other labor or industrial disturbance (whether or not on the part of employees of Lessor), civil disturbance, future valid order of any government, court or regulatory body having proper jurisdiction, act of the public enemy, war, riot, sabotage, blockage, embargo, failure or inability to secure materials or labor by reason of priority  or similar regulations or orders of any government or regulatory body, lightning, earthquake, fire, storm, hurricane, flood, washout, explosion, act of God or any other cause beyond Lessor’s control, the Completion Date shall be extended to the extent of such delays.

1.03    The Leased Premises shall conclusively be deemed ready for Lessee’s occupancy as soon as the Work has been substantially completed.  The Leased Premises shall not be deemed to be unready for Lessee’s occupancy or incomplete (a) if only minor or unsubstantial details of construction, decoration or mechanical adjustments remain to be done in the Leased Premises or any part thereof provided that none of such items are necessary to make the Leased Premises tenantable for Lessee’s use and that their cost as then reasonably estimated does not exceed the amount of the first four (4) months of basic rent or (b) if delay in the availability of the Leased Premises for Lessee’s occupancy is caused in whole or in part by Lessee.

1.04    Lessor shall give Lessee at least one (1) week’s prior notice of the date when the Leased Premises is expected to be ready for occupancy, and as soon as conditions practicably permit, Lessor shall finish the items of work and adjustment not finished when the Leased Premises is ready for occupancy.

2.         Term

		
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	The term of this Lease shall be for Five (5) Years  (the “Lease Term”) commencing on August 1, 2014 and ending July 31, 2019. Said dates to be stipulated to and confirmed in writing by Lessor.

		
	1.
	Rent and operating expenses

		
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	Lessee agrees to pay to Lessor at 2880 Bergey Road, Suite D, Hatfield, PA 19440 or at such place as Lessor may designate, without deduction, offset, prior notice or demand, and the Lessor agrees to accept, as the minimum rent for the Leased Premises for the Lease Term, the sum of One Hundred Seventy Four Thousand, Four Hundred Seventy Five Dollars and 20/100 ($174,475.20), lawful money of the United States payable in installments of $2,907.92 each, such installments to be paid monthly in advance, on the first day of each month during the Lease term. $10,348.77 paid herewith to Lessor 

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EXHIBIT 10.1 BERGEY ROAD LEASE

upon the execution of this Lease, receipt of which is hereby acknowledged, shall represent the first One months’ rental and Two month(s) security deposit in the amount of $9,807.10 and one month’s Operating Expense Allocation in the amount of $541.67.

		
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	Lessee also agrees to pay to Lessor at the place aforesaid, without prior notice or demand and without deduction or offset, an amount, on an annual basis, determined by multiplying the square footage of the Leased Premises by an “Operating Expense Allocation” of $1.30 per square foot per year, which amount shall be payable concurrently with the payments of monthly installments of minimum rent, in monthly installments equal to 1/12th of said amount.  However, in the event the “Tenant Expense Allocation” of “Real Estate Impositions” plus “Direct Costs”  (all as defined below) exceeds, in any calendar year falling wholly or partly within the Lease Term, the Operating Expense Allocation, Lessor shall so advise Lessee as soon as practicable, and:

            (i)     Lessee shall pay to Lessor, concurrently with the next regular monthly payment of minimum rent, the amount of the excess multiplied by the square footage of the Leased Premises (and adjusted, pro rata, on the basis of a 365-day year, if the Lease Term was not in effect for the full calendar year), plus the amount of any increase in the monthly installments of Operating Expense Allocation (if the same is increased by Lessor as below provided), multiplied by the square footage of the Leased Premises, for the months of the calendar year intervening between the end of the prior calendar year and the date on which the next monthly payment of rent is due or the date of expiration of the Lease Term, whichever is the earlier (Lessee’s obligations under this sub-Article (i) to survive termination in the event this Lease expires prior to Lessor’s determination of the excess); and 

                 (ii)      Lessor shall have the right to increase the Operating Expense Allocation to an amount, to be reasonably and fairly determined by Lessor, which Lessor estimates will fully cover (assuming full occupancy of the Building) the Real Estate Impositions and Direct Costs as will be paid or incurred for the calendar year with respect to the Building (Lessor also having the right to receive subsequent payments from Lessee under sub-Article (i) above, and under this sub-Article (ii) to subsequently increase the Operating Expense Allocation payable in later calendar year(s), and in such case, the subsequent monthly installments of the Operating Expense Allocation shall be increased accordingly.  Lessee may request an accounting at year end of the Operating Expense Allocation expenses billed to its unit.

In the event the Tenant Expense Allocation of Real Estate Impositions plus Direct Costs is less, in any calendar year falling wholly or partly within the Lease Term, then the Operating Expense Allocation for that year, the difference, multiplied by the square footage of the Leased Premises (and adjusted, pro rata, as aforesaid, if the Lease Term was not in effect for the full calendar year) shall be credited against any payments as may subsequently become payable by Lessee under Article 3.02 (i) and, to the extent not fully consumed by such crediting, against any subsequent increase in the Operating Expense Allocation.

The defined terms used in this Article 3.02 have the following meanings:

“Direct Costs”- All direct costs of operation and maintenance of the Building and related grounds and facilities as determined by standard accounting practices, including the following costs by way of illustration but not limitation:
insurance premiums;
the costs of building and grounds, maintenance and operation and repair, including but not limited to: the cost of repairs and replacements to the Building and of Building items and equipment; snow and trash-removal and lawn and general grounds upkeep including paving maintenance and replacement; landscaping maintenance and replacement; electricity for outdoor lighting; repair, maintenance and replacement of grounds and building maintenance equipment and machinery.  Items of Direct Costs which are not exclusively incurred with respect to the Building by reason of the nature of the times or otherwise, shall be equitably allocated by Lessor among the Buildings to which the same relate or for whose benefit the same have been incurred, and only the portion allocated to the Building shall be included in calculating the Direct Costs for the Building.  The term “Direct Costs” shall not include utility services to be paid for directly by Lessee as hereafter provided, depreciation on the Building or equipment therein, interest, net income, franchise or capital stock taxes payable by Lessor, executive salaries, real estate brokers commissions, costs to be reimbursed to Lessor by Lessee under Article 13.02 or the costs of services provided specifically for any given tenant at such tenant’s expense and not uniformly available to all tenants of the Building.

“Real Estate Impositions” - Ad valorem real property on the Building and related grounds and facilities and any other taxes as may be levied in lieu of or in substitution for or supplementary to such taxes; public assessments, both general and special; any tax, levy or other charge (whether or not a tax or in the nature of a tax) by any governmental authority pursuant to or in implementation of the Federal Clean Air Act, the Federal Water Pollution Control Act or any other environmental legislation by any governmental body or authority, and any rules or regulations thereunder; unless paid directly by tenant(s), any tax or other levy on or measured by rentals received from the Building.  If any Real Estate Imposition is imposed, assessed, levied or charged only upon or in reference to the common or open areas of Lessor’s property on which the Building is located, or parts of same, or if any Real Estate Imposition is not separately imposed, assessed, levied or charged on or against the Building and its related 

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EXHIBIT 10.1 BERGEY ROAD LEASE

grounds and facilities alone or the rentals derived therefrom, the amount of such Real Estate Imposition attributable to the Building in any such case, for the purposes of this Article, shall be as fairly allocated and determined by Lessor.

         “Tenant Expense Allocation” - The amount determined by adding the Direct Costs and Real Estate Impositions for or attributable to any given calendar year, and dividing the result by the square footage of the Building.

		
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	Lessee further agrees that on default in any payment or installment of rent hereunder within five (5) days of the date on which the same is due, then without limitation of any other right or remedy of Lessor as may apply because of such default, Lessee shall pay Lessor, as additional rent partially compensating Lessor for the extra expenses attributable to such delay, a late charge equal to eight cents for each dollar which was not so paid within said five (5) day period.

		
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	Lessee has deposited with Lessor the sum of Six Thousand Eight Hundred Ninety Nine Dollars and 18/100 ($6,899.18) as security for the full performance of all of the provisions of this Lease.  If at any time during the Lease Term hereof, or the Lease Term as it may be extended, Lessee shall be in default in payment of minimum or additional rent or is otherwise in default hereunder, Lessor, without  waiver or limitation of any other right or remedy as Lessor may have because of such default, (i) may apply all or part of the security deposit to the payments of rent in default and (ii) may appropriate all or part of the deposit to cure the default including but not limited to use of the deposit, in order to repair  damages to the Leased Premises caused by Lessee and/or to defray any and  all reasonably necessary expenses incurred by Lessor in recovering possession of the Leased Premises upon the termination of the tenancy created by this Lease.  To the extent that all or any portion of the security  deposit is thus applied or appropriated, and if this Lease shall not have been terminated because of the default, Lessee, on Lessor’s request and as a  condition to the continuance of this Lease,  shall pay to Lessor, within (5) days of the request, an amount sufficient to place in Lessor’s hands double the amount of the original security deposit, taking into account the portion, if any, of the original security deposit as may not have been applied or expended by Lessor in accordance with this Lease.  If Lessee is not in default at the termination of this Lease, Lessor, after inspection of the premises and assurance that Lessee has fully performed its covenants hereunder, and in any event no later than 60 days thereafter, shall return the security deposit (or the portion which has not been applied or expended in accordance herewith) to Lessee.  Lessor’s obligation to Lessee respecting the security deposit is that of a debtor, not a trustee or escrowee; and the security deposit may be commingled, held or deposited as Lessor may elect, and may be dissipated pursuant to the provisions hereof.  No interest shall accrue on the security deposit.

		
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	Cost of Living Adjustment.  Commencing with the rental payment due on August 1, 2015, the annual rent for each year shall be adjusted if the All Urban Consumer Price Index for Philadelphia, Pennsylvania, for all items, of the Bureau of Labor Statistics of the United States Department of Labor (“Index”) for June immediately preceding the year in which the determination is being made is higher than the Index for the month of August, 2014 (”Base Index”), the annual rent shall be increased by multiplying the annual rental set forth in paragraph 3 of this Lease by a fraction, the denominator of which is the Base Index and the numerator of which is the difference between the Index for June immediately preceding the year of determination and the Base Index; the resulting product shall be the increase in the annual rent  for the year in which the determination is being made; the increase shall be divided into twelve equal installments and added to the monthly rent paid in the year in which the determination is being made.  Lessor shall compute any such increases and notify Lessee of the adjusted rental.  The parties acknowledge that there may be a lag in publication time of the C.P.I. and agree that the previous minimum annual rental shall remain in force until such time as the C.P.I. setting forth the Index is published; thereafter the minimum annual rental adjustment shall be retroactively applied, and shall be due and payable as additional rent, upon presentation of the calculation by Lessor to Lessee.  If at the time of any adjustment the C.P.I. is no longer reported or its basic principle has been altered, an alternative method shall be used to increase the minimum annual rent to equitably reflect any increase in the cost of living.  Under no circumstances shall any new minimum annual rent be less than the minimum annual rent which is payable immediately prior to the adjustment.  Lessor agrees that the CPI will not be increased during the initial three (3) year period of this lease.

		
	2.
	Delay in Delivery of Possession

		
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	If Lessor, for any reason whatsoever, cannot deliver possession of the Leased Premises to Lessee at the commencement of the Lease Term, this Lease shall not be void or voidable, nor shall Lessor be liable to Lessee for any loss or damage resulting therefrom, but in that event there shall be a proportionate reduction of rent covering the period between the commencement of the Lease Term and the time when Lessor can deliver possession.  The Lease Term shall be extended by such delay, and if requested by Lessor, Lessee shall execute a written confirmation of the date to which the Lease Term is thus extended.

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EXHIBIT 10.1 BERGEY ROAD LEASE

		
	1.
	Utilities

		
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	Lessee shall be responsible to arrange for telephone service to the Leased Premises, if required by Lessee, the installation of same to be subject to Lessor’s reasonable approval.

		
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	Electricity and gas shall be supplied to the Leased Premises by the public utilities servicing the Building.  Lessee shall directly pay such public utility.  The failure of Lessee to pay the bills rendered to Lessee by such public utility when the same are due, shall constitute default hereunder.  Lessor will bill the Lessee for Water and Sewer usage.

		
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	Lessor shall not be liable to Lessee  nor shall this Lease or Lessee’s obligations hereunder be impaired or abated in the event of the Lessor’s failure to provide the forgoing services if such failure is caused by malfunction, accident, breakdown, repairs, casualty or other causes beyond Lessor’s reasonable control.

		
	2.
	Acceptance of Premises

6.01    Subject to the provisions of Section 1.04, the entry by Lessee into the Leased Premises and the taking of possession thereof shall be acknowledged by Lessee that the Leased Premises are in good and tenantable and satisfactory condition at the beginning of the term of this Lease and that up to the time of such occupancy Lessor has performed all of its obligations under this Lease.  Lessor has no duty to make repairs  or alterations to  the Leased Premises at any time prior to or during the term of this Lease except as specifically set forth in this Lease.

7.    Alterations

7.01    Alterations or additions may not be made to the Leased Premises without the prior written consent of Lessor; and any alterations or additions to the Leased Premises, excepting moveable trade fixtures, shall, at Lessor’s option, become part of the realty and belong to Lessor.  Any alterations or additions to the Leased Premises made by Lessee (without limitation of Lessor’s rights against Lessee in case of alterations or additions made without Lessor’s consent) unless designated by Lessor to be part of the realty and Lessor’s property (which designation may be made either in conjunction with Lessor’s approval of such alterations or additions being made or at any time thereafter, but at least 30 days prior to the expiration of the Lease Term) shall be removed by Lessee and the Leased Premises restored to its previous condition by the expiration of the Lease Term.

7.02    Should Lessee desire to alter the Leased Premises and Lessor gives written consent to such alterations, at Lessor’s option, Lessee shall contract  with Lessor for the construction of such alterations, and Lessee shall pay Lessor  the cost thereof plus a reasonable allowance for overhead and profit or the minimum rental provided above shall be increased at a mutually agreeable rate.
                                    
7.03    Notwithstanding anything in Article 7.02 above, Lessee may, upon written consent of Lessor, install movable trade fixtures, light machinery and other equipment required in Lessee’s use of the Leased Premises, and normal desk-type office equipment; provided that if any such machinery equipment, in Lessor’s reasonable opinion, would generate excessive trash or waste, be disturbing to other tenants or require excessive electrical current beyond that safely carried by the service lines to the Building and Leased Premises, Lessor may prohibit its installation or require its removal unless special arrangements satisfactory to Lessor are made between Lessor and Lessee regarding same.  All such trade fixtures, machinery and equipment (as well as furniture and other items or personalty) shall be removed by Lessee upon the termination of this Lease provided Lessee shall not then be in default under the terms and conditions of this Lease, and the Leased Premises are not damaged by the initial installation, operation or such removal.  Lessee shall return the Leased Premises on the termination of this Lease in the same condition as when rented to Lessee, reasonable wear and tear accepted.  Lessee shall keep the Leased Premises and the Building, and the property in which the Leased Premises are situated free from any mechanic’s lien (s) or claim (s) arising out of any work performed for, material furnished to, or obligation incurred by Lessee.

7.04    Before proceeding with any work of alterations, etc. unless Lessor has contracted therefor, Lessee shall first give Lessor written notice of the contractual arrangements proposed to be entered into or implemented by Lessee in furtherance thereof, which arrangements shall include provisions, reasonably satisfactory to Lessor, to assure that all work and materials will be fully paid for and that the Leased Premises, Building and the property on which it is erected will not be subject to the filing of any mechanic’s lien (s) or claim (s).

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EXHIBIT 10.1 BERGEY ROAD LEASE

8.    Waste and Quiet Conduct

8.01    Lessee shall not commit, or suffer any waste upon the Leased Premises, or any nuisance, or any other act or thing which may disturb the quiet enjoyment of any other tenant in the Building. Lessee shall also have quiet and clean enjoyment from any other tenant in the Building.

9.    Fire Insurance Hazards
9.01    No use shall be made or permitted to be made of the Leased Premises, nor acts done, which will increase the existing rate of insurance upon the Building or cause the cancellation of any insurance policy covering the Building, or any part thereof, nor shall Lessee sell, or permit to be kept or used, in or about the Leased Premises, any article which may be prohibited by the standard form of fire insurance policies.  Lessee shall, at its sole cost and expense, comply with any and all requirements, pertaining to the Leased Premises, of any insurance organization or company, necessary for the maintenance of reasonable fire and public liability insurance, covering the Leased Premises, Building and appurtenances.  Lessee agrees to pay to Lessor as additional rent, any increase in premiums on policies which may be carried by Lessor on the Leased Premises (covering damage to the Building and loss of rent caused by fire and the perils normally included in extended coverage) to the extent Lessee’s use and occupancy results in or is the principal cause for such increase above the rates for the least hazardous type of occupancy.

9.02    Lessee shall maintain in full force and effect on all of its fixtures and equipment in the Leased Premises a policy or policies of fire and extended coverage insurance with standard coverage endorsement to the extent of at least eighty percent (80%) of their insurance value.  During the Lease Term, the proceeds from any such policy or policies of insurance shall be used for the repair or replacement of the fixtures and equipment so insured.  Lessor shall have no interest in the insurance upon Lessee’s equipment and fixtures and will sign all documents necessary or proper in connection with the settlement of any claim or loss by Lessee.

		
	1.
	    Liability Insurance

10.01    Lessee, at its own expense, shall provide and keep in force with companies acceptable to Lessor, public liability insurance for the benefit of Lessor and Lessee jointly against liability for bodily injury and property damage in the amount of not less than Two Million Dollars ($2,000,000) combined single limits of liability for bodily injury and property damage.  If Such limits are to be increased they must be mutually agreed upon by the Lessor and Lessor .  Once agreed by both parties the Lessor will provide at least 30 days prior notice from Lessor to Lessee, to increase any greater amounts as may be reasonably indicated by circumstances from time to time existing.  Lessee shall furnish Lessor with a certificate of such policy and whenever required shall satisfy Lessor that such policy is in full force and effect.  Such policy shall name Lessor as an additional insured and shall be primary and non-contributing with any insurance carried by Lessor or, if requested by Lessee and approved by Lessor, expressly recognize Lessee’s waiver of any claims against Lessor due to covered risks and confirm effectiveness thereof notwithstanding unavailability rights against Lessor as otherwise might be available to the insurer by subrogation.  The policy shall further provide that it shall not be cancelled or altered without at least ten (10) days prior written notice to Lessor and any mortgagee designated by Lessor.

11.    Indemnification by Lessee

11.01
Waiver of Subrogation.  Both parties shall cause each insurance policy carried by it insuring the premises (as well as the contents thereof, as applicable) against loss by fire or any of the casualties covered by its insurance to be written in such a way so as to provide that the insurer waives all right to recover by way of subrogation against the other party in connection with any loss or damage covered by the policy.  Without affecting any other rights or remedies, Lessee and Lessor each hereby release and relieve the other, and waive their entire right to recover damages against the other, to the extent of each party’s property insurance coverage, for loss of or damage to its property arising out of or incident to the perils required to be insured against herein.

11.02
Indemnity.  Except for Lessor’s gross negligence or willful misconduct, Lessee shall indemnify, protect, defend, and hold harmless the Premises, Lessor, and its agents, Lessor’s partners and Lenders, from and against any and all claims, losses, and or damages, liens, judgments, penalties, attorneys’ and consultants’ fees, expenses, and or liabilities arising out of, involving, or in connection with the act or neglect of Lessee or any entity or person for which Lessee is legally liable, upon or about the premises.  If any action or proceeding is brought against Lessor by reason of any of the foregoing matters, Lessee shall upon notice defend the same at Lessee’s expense by counsel reasonably satisfactory to Lessor and Lessor shall cooperate with Lessee in such defense.  Lessor need not have first paid any such claim in order to be defended or indemnified.  Except for Lessee’s gross negligence or willful misconduct, Lessor shall indemnify, protect, defend, and hold Lessee harmless from and against any 

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EXHIBIT 10.1 BERGEY ROAD LEASE

and all claims, losses, and/or damages, liens, judgments, penalties, attorneys’ and consultants’ fees, expenses, and/or liabilities arising out of, involving, or in connection with the act or neglect of Lessor or any entity or person for which Lessor is legally liable upon or about the Leased Premises or Common Area.  If any action or proceeding is brought against Lessee by reason of foregoing, Lessor shall upon notice defend the same at Lessor’s expense and Lessee shall cooperate with Lessor in such defense.  Lessee need not have first paid any such claim in order to be defended or indemnified.  

		
	1.
	Repairs and Maintenance

12.01    Lessee shall, at its sole cost, keep and maintain the Leased Premises and appurtenances and every part thereof (excepting the structure of the exterior walls and roofs, which Lessor agree to repair, as Direct Cost item under Article 3.02 provided Lessor has reasonable notice of the necessity therefor) in good and sanitary order,  condition and repair, subject to ordinary and reasonable wear and tear.  Lessee’s obligations shall include, but not be limited to all interior cleaning and repairs and maintenance including interior ceilings, walls and partitions, and the proper operation, repair (making replacements, if necessary) and maintenance of the fixtures and equipment which comprise part of the leased Premises so as to keep same in good operating order and condition (subject to Article 13.02), replacement of any broken or cracked windows and other glazing, repair (and replacement if necessary) of interior and exterior doors, and furnishing fluorescent tubes and ballasts for light fixtures and all expendables (light bulbs, paper goods, soaps, etc. ) used in the Leased Premises during the Lease Term and any extension thereof.

12.02    Lessor shall perform regular maintenance and service of heating or air conditioning equipment subject to reasonable notice of necessity therefore and shall make any necessary repairs or replacements thereto, and Lessee shall reimburse Lessor for the cost of such maintenance, service, repair and replacements within ten (10) days of request therefore (or, if later, to be paid with the next regular monthly payment of minimum rent).  Lessee, however, shall be responsible for proper operation of any such equipment.

		
	2.
	Auctions, Signs, Landscaping

		
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	Lessee shall not conduct or permit to be conducted any sale by auction on the Leased Premises.  Lessor shall have the right to control landscaping and to approve the placing of signs and the size and quality of the same.  Lessee shall make no alterations or additions to the landscaping and shall place no exterior signs on the Leased Premises or interior signs without the prior written consent of Lessor.  Exterior signs shall be governed by the provisions of Exhibit “C”, attached hereto and made a part hereof.

		
	3.
	Entry by Lessor

		
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	Lessee shall permit Lessor and Lessor’s agents to enter the Leased Premises at all reasonable times for the purpose of inspecting the same or for the purpose of maintaining the Building, or for the purpose of making repairs, alterations, or additions to any portion of the Building, including the erection and maintenance of such scaffolding, canopies, fences and props as may be required, or for the purpose of posting notices of non-responsibility for alterations, additions, or repairs, or for the purpose of placing upon the Building any usual or ordinary “for sale” signs, without any rebate of rent and without any liability to Lessee for any loss of occupation or quiet enjoyment of the Leased Premises thereby occasioned; and shall permit Lessor, at any time within ninety (90) days prior to the expiration of this Lease, to place upon the Leased Premises any usual or ordinary “to let” or “to lease” signs.

		
	4.
	    Taxes

15.01    Lessee shall pay before delinquency any and all taxes, assessments, license fees, and public charges levied, assessed or imposed and which become payable during the Lease upon Lessee’s income or receipts, Lessee’s business, Lessee’s use and occupancy of the Leased Premises, and Lessee’s fixtures, furniture, appliances and personal property installed or located in the Leased Premises.

		
	5.
	Abandonment

		
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	Lessee shall not vacate or abandon the Leased Premises at any time during the Lease Term, nor permit the Leased Premises to remain unoccupied for a period longer than ten (10) consecutive days during the Lease Term; and if Lessee shall abandon, vacate or surrender the Leased Premises,  or be dispossessed by process of law, or otherwise, any personal property belonging to Lessee and left on the Leased Premises shall, at the option of the Lessor, be deemed abandoned and may be used, sold (without public notice or auction) destroyed or otherwise disposed of by Lessor without any accountability whatsoever to Lessee.

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EXHIBIT 10.1 BERGEY ROAD LEASE

		
	6.
	Destruction

		
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	In the event of (a) a partial destruction of the Leased Premises or the Building during the Leased Term which requires repairs to either the Leased Premises or the Building, or (b) the Leased Premises or the Building being declared unsafe or unfit for occupancy by any authorized public authority for any reason other than Lessee’s act, use or occupation, which declaration requires repairs to either the Leased Premises or the Building, Lessor shall make the repairs, provided that the damage is such, in Lessor’s sole reasonable judgement, that under normal working conditions, repairs could be made within thirty (30) days from the commencement of work but partial destruction (including any destruction necessary in order to make repairs required by any declaration) shall in no way annul or void this Lease, except that Lessee shall be entitled to a proportionate deduction of rent while such repairs are being made; and such work or repair shall be commenced promptly after the nature of the damage and degree of repair required is determined, any necessary permits from governmental authorities are obtained, and if appropriate, insurance adjustments completed.  The proportionate reduction is to be based upon the extent to which the making of repairs shall interfere with the business carried on by Lessee in the Leased Premises.  In making repairs Lessor shall be obligated to replace only such glazing as shall have been damaged by fire and other damaged glazing shall be replaced by Lessee.  If the damage be such, in nature or extent that repairs could not be made within 30 days as aforesaid, Lessor may, at its option elect to proceed nonetheless to make same, this Lease continuing in full force and effect and the rent to be proportionately abated, as in this Article provided.  Any repairs undertaken  by Lessor in accordance with the foregoing shall be substantially completed as soon as practicable.  In the event that Lessor does not so elect to make repairs which could not be made as aforesaid within thirty (30) days, or repairs cannot be made under current laws and regulations, this Lease may be terminated at the option of either party.  A total destruction (including any destruction required by any authorized public authority) of either the Leased Premises or the Building shall terminate this Lease.

18.    Assignment and Subletting

18.01  Without Lessor’s consent, Lessee shall not assign, mortgage, or hypothecate this Lease, or any interest in this Lease, or sublet or otherwise permit the use of the Leased premises or any part thereof by any person or persons other than Lessee.  Any transfer of this Lease from the Lessee by merger, consolidation, stock transfer, or liquidation shall constitute an assignment for purposes of this Lease.  Any attempted assignment or subletting without Lessor’s consent shall be void and shall at the option of Lessor be deemed a default by Lessee.  Consent by Lessor to any assignment or subletting shall not release Lessee from its primary liability under the Lease, and Lessor’s consent to one assignment, subletting or occupation or use by other parties shall not be deemed a consent to other subleases or assignments or occupation or use by other parties.

19.  Insolvency

19.01 In the case of (a) the appointment of a receiver to take possession of all or substantially all of the assets of Lessee, or (b) a general assignment by Lessee for the benefit of creditors, or (c) any act of bankruptcy being committed by Lessee, or (d) Lessee filing a petition or commencing any proceeding under any bankruptcy or insolvency law or admitting, in such petition or proceeding filed against it, the material substantive allegations of same or otherwise consenting thereto, or (e) Lessee being adjudicated bankrupt or insolvent, or (f) any action being suffered by Lessee under any insolvency or bankruptcy act and any such appointments, assignments or action continues for a period of thirty (30) days, or (g) any attachment or execution against a substantial part of Lessee’s assets or Lessee’s interest hereunder being issued and remaining undismissed or unstayed for more than ten (10) days or a substantial part of Lessee’s assets being taken by legal proceedings, the same or any of them automatically shall constitute a default under this Lease by Lessee, and Lessor may at its election without notice, terminate this Lease and in that event be entitled to immediate possession of the Leased Premises and damages as provided below.

        
20.  Breach By Lessee

20.01 In the event of a default by Lessee, Lessor, besides other rights or remedies that it may have and without prior notice except in the case of defaults in the performance of any covenant other than the payment of rent or other sums due hereunder in which case Lessor shall have first given at least ten (10) days notice of the alleged default and the same is not cured in that period, shall have the right to (i) accelerate all rent otherwise payable by Lessee over the remainder of the Lease Term, in which case all such rent shall be due and payable within ten (10) days from the notice of acceleration, and (ii) terminate this Lease and (iii) terminate Lessee’s right of continued possession of the Leased Premises and from time to time, without terminating this Lease, relet the Leased Premises or any part thereof for the account and in the name of Lessee, for any such term or terms and conditions as Lessor in its sole discretion may deem advisable with the right to make alterations and repairs to the Leased Premises deemed by Lessor to be necessary in conjunction with such reletting; and Lessee shall pay to Lessor, as soon as 

7

EXHIBIT 10.1 BERGEY ROAD LEASE

ascertained, the costs and expenses incurred by Lessor in such reletting and in making such alterations and repairs.  Rentals received by Lessor from such reletting shall be applied: first, to the payment of any indebtedness, other than rent, due hereunder from Lessee to Lessor; second, to the payment of the cost of any alterations and repairs to the Leased Premises necessary to return the Leased Premises to good condition, normal wear and tear excepted, for uses permitted by this Lease and the cost of storing any of Lessee’s property left on the Leased Premises at the time of reletting; third to the payment of rent due and unpaid hereunder and the residue, if any, shall be held by Lessor and applied in payment of future rent or damages in the event of termination as the same may become due and payable hereunder and the balance, if any, at the end of the Lease Term shall be paid to Lessee.  Should such rentals received from time to time from such reletting during any month be less than that agreed to be paid during that month by Lessee hereunder, Lessee shall pay such deficiency to Lessor.  Such deficiency shall be calculated and paid monthly.  No such reletting of the Leased Premises by Lessor pursuant to (iii) above shall be construed as an election on its part to terminate this Lease or unless the termination thereof be decreed by a court of competent jurisdiction; and notwithstanding any such reletting without termination, Lessor may at any time thereafter elect to terminate this Lease for such previous breach provided it has not been cured.

Should Lessor at any time terminate this Lease for any breach, pursuant to (ii) above, in addition to any  other remedy it may have, it may  recover from Lessee all damages it may incur by reason of such breach, including the cost of recovering possession of the Leased Premises, and (1) all amounts that would have fallen due as rent between the time of termination of this Lease and the time of the claim, judgment, or other award, less the avails of all reletting and attornments, plus interest on the balance at the rate of six percent (6%) (or the then prevailing maximum legal rate) per year; or (2) the worth at the time of claim, judgment or other award, of the amount by which the unpaid rent for the balance of the Lease Term exceeds the amount of such rental loss that Lessee proves could be reasonably avoided.  “Worth” as used in this provision, is computed by discounting the total at the discount rate of the Federal Reserve Bank of Philadelphia at the time of the claim, judgment or award, plus one percent (1%).

20.02 In the event of a default and after any required notice as provided for in Article  20.01 above, Lessee, with understanding of the RELINQUISHMENT OF CERTAIN RIGHTS to which Lessee otherwise would be entitled as a matter of law and due process, including the right to notice and judicial hearing, does hereby authorize any attorney of any court of record of the Commonwealth of Pennsylvania, or of any other jurisdiction where authorized by law, to accept service of process for, to appear for and on Lessee’s behalf, and to CONFESS JUDGMENT AGAINST LESSEE, in any and all actions brought hereunder by Lessor (or by anyone claiming under Lessor) against Lessee:  (I) in ejectment or other appropriate action to recover possession of the Leased Premises (if Lessor shall have elected to terminate this Lease or if the Leased Term shall have expired or Lessee’s right to continued possession shall have otherwise terminated), and Lessee agrees that upon the entry of such judgment, a Writ of possession or other appropriate process may issue forthwith; and (II) in assumpsit or other appropriate action for the recovery of money, for all rent and any other sums then due Lessor hereunder and unpaid by Lessee together with attorneys fee of 15% of the monies due.

COMMERCIAL TRANSACTION, LESSEE UNDERSTANDS AND ACKNOWLEDGES THAT, IN CONNECTION WITH THIS COMMERCIAL TRANSACTION, BY AGREEING TO THE REMEDIES OF LESSOR HEREIN CONTAINED, LESSEE WAIVES RIGHTS TO DUE PROCESS OF LAW WHICH MIGHT OTHERWISE BE GUARANTEED TO LESSEE BY THE CONSTITUTIONS OF THE UNITED STATES AND THE COMMONWEALTH OF PENNSYLVANIA, AS WELL AS RIGHTS PROVIDED BY THE STATUTES OF THE COMMONWEALTH OF PENNSYLVANIA.

20.03 Lessee expressly agrees that any judgment, order or degree entered against Lessee by or in any court of Magistrate by virtue of the powers of attorney contained in the Lease, or otherwise, shall be final, and that Lessee will not take an appeal, certiorari, writ of error, exception or objection to the same, or file a motion or rule to strike off or open or to stay execution of the same, and releases to Lessor and to any and all attorneys who may appear for Lessee all errors in the said proceedings, and all liability therefor.  Lessee expressly waives the benefits of all laws, now or hereafter in force, exempting any goods on the Leased Premises, or elsewhere from distraint, levy or sale in any legal proceedings taken by the Lessor to enforce any rights under this Lease.  Lessee further  waivers the right of inquisition on any real estate that may be levied upon to collect any amount which may become due under the terms and conditions of this Lease, and does hereby voluntarily condemn the same and authorizes the Prothonotary or Clerk of Courts to issue a Writ of Execution or other process.  If proceedings shall be commenced by Lessor to recover possession under the Acts of Assembly, either at the end of the term or sooner termination of this Lease or for nonpayment of rent or any other reason, Lessee specifically waives the right to the three months’ notice and/or the fifteen or thirty days’ notice required by the  Act of April 6, 1951; P.L. 69, as the same may from time to time be amended and agrees that three (3) days notice shall be sufficient in either or any such case.

20.03 The right to enter judgment against Lessee and to enforce all of the other provisions of this Lease hereinabove provided for may, at the option of any assignee of this Lease, be exercised by any assignee of the Lessor’s right, title and interest in this Lease in his, her, its, or their own name, notwithstanding the fact that any or all assignments of the said right, title, and interest may not be executed and/or witnessed in accordance with the Act of Assembly of May 28, 1715, 1 Sm.L. 99, and all 

8

EXHIBIT 10.1 BERGEY ROAD LEASE

supplements and amendments thereto that have been or may hereafter be passed, and Lessee hereby expressly waives the requirements of said Act of Assembly and any and all laws regulating the manner and/or form in which such assignments shall be executed and witnessed.

21.  Non Merger of Estates, Subordination; Estoppel Certificates; Declarations; Attornment

21.01  The voluntary or other surrender of this Lease by Lessee, or any other termination of this Lease shall not work a merger of estates and shall, at the option of Lessor, either terminate all or any existing subleases, and/or subtenancies or operate as an assignment to it by Lessee of any or all of such subleases or subtenancies.

21.02  This Lease shall be subject and subordinate at all times to all ground and underlying leases which now exist or may hereafter be executed affecting the Building or the land upon which the Building is situated or both, and to the lien of any mortgages in any amount or amounts whatsoever now or hereafter placed on or against the land and Building or either thereof, or on Lessor’s interest of estate therein, or portion thereof, or on or against any ground or underlying lease, without the necessity of the execution and delivery of any further instruments on the part of Lessee to effectuate such subordination.  Lessee hereby agrees, at the written request of the landlord under any ground or underlying lease or mortgagee or purchaser of the mortgaged premises in any foreclosure or other proceedings, to attorn to such landlord or to such mortgagee or purchaser or, at such landlord’s, mortgagee’s or purchaser’s option, to enter into a new lease for the balance of the Lease Term upon the same terms and provisions as are contained in this Lease.  Lessee shall execute and deliver upon demand, such further instrument or instruments evidencing such subordination of this Lease to the lien of any such mortgage or mortgages as may be required by Lessor.

21.03  Lessee shall, at any time and from time to time upon not less than ten (10) days prior written notice from Lessor, execute, acknowledge and deliver to Lessor a statement, in form reasonably required by Lessor,  (i) certifying that this Lease is unmodified and in full force and effect (or, if modified, stating the nature of such modification and certifying that this Lease as so modified, is in full force and effect) and the dates to which the rental and other charges are paid in advance, if any; (ii) acknowledging that there are not, to Lessee’s knowledge, any uncured defaults on the part of Lessor hereunder, or specifying such defaults if any are claimed; and (iii) any other certification reasonably required by any mortgagee, including agreements of no set-off and release of liability as to such Mortgagee and its successors.  Any such statements may be relied upon by any prospective  purchaser or mortgagee of all or any portion of the real property of which the Leased Premises are a part.

Lessee’s failure to deliver such statement within such time shall be conclusive upon Lessee (i) that this Lease is in full force and effect, without modification except as may be represented by Lessor, (ii) that there are no uncured defaults in Lessor’s performance, and (iii) that not more than one month’s rental has been paid in advance.

21.04  This Lease and Lessee’s rights hereunder are at all times subject and subordinate to the terms of any declaration of Bergey Road Industrial Condominium Restrictions and Easements ( or any similar covenants, restrictions or easements including but not limited to any agreement now or hereafter entered into by Lessor or Lessor’s predecessor or successor) pertaining to driveways, walkways, roadways, parking areas; and other common facilities used by Lessee in common with other person(s) now or hereafter created by Lessor or binding upon Lessor, and any modification or amendments thereto now or hereafter made.  Lessee will at all times comply with the terms and conditions of such declaration (or covenants, restrictions and easements) and will not create, suffer or permit any violation thereof.

21.05  If for any reason the leasehold estate of Lessor as tenant under any underlying lease is terminated by summary proceedings or otherwise, then, Lessee will attorn to such landlord and will recognize such landlord as Lessee’s Lessor under this Lease.  Lessee agrees to execute and deliver, at any time and from time to time, upon the request of Lessor or of the landlord under any such underlying lease, any instruments which may be necessary or appropriate to evidence such Attornment and Lessee hereby appoints Lessor or the landlord under such underlying lease the attorney-in-fact, irrevocable, of Lessee to execute and deliver any such instrument for and on behalf of Lessee.  Lessee further waives the provisions of any statute or rule or law now or hereafter in effect which may give or purport to give Lessee any right of election to terminate this Lease or to surrender possession of the Leased Premises in the event such underlying lease terminates or any such proceeding is brought by the landlord under such underlying lease, and agrees that, this Lease shall not be affected in any way whatsoever, by any such proceeding or termination.  

22.  Attorney’s Fees

22.01  In the event of any legal action or proceeding between the parties hereto, attorney’s fees and expenses of the Lessor in any such action or proceeding shall be added to the judgment therein.

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EXHIBIT 10.1 BERGEY ROAD LEASE

22.02  Should Lessor be named as a defendant or made a party in any suit brought against Lessee in connection with or arising out of Lessee’s occupancy hereunder, Lessee shall pay to Lessor, as additional rent hereunder, its costs and expenses incurred in such suit, including a reasonable attorney’s fee.

23.  Condemnation

23.01  If any part of the Leased Premises shall be taken or condemned for a public or quasi-public use, and a part thereof remains which is susceptible for occupation hereunder, the Lease shall, as to the part so taken, terminate as of the date title shall vest in the condemnor, and the rent payable hereunder shall be adjusted so that the Lessee shall be required to pay for the remainder of the Lease Term only such portion of such rent as the number of square feet in the part remaining after the condemnation bears to the number of square feet in the entire Leased Premises at the date of condemnation; but in such event Lessor shall have the option to terminate this Lease as of the date when title to the part so condemned vests in the condemnor.  If all the Leased Premises, or such part thereof be taken or condemned so that there does not remain a portion susceptible for occupation hereunder, this Lease shall thereupon terminate.  If a part or all of the Leased Premises be taken or condemned, all compensation awarded upon such condemnation or taking shall go to the Lessor and the Lessee shall have no claim thereto, and the Lessee hereby expressly waives, relinquishes and releases to Lessor any claims for damages or other compensation to which Lessee might otherwise be entitled because of any such taking or limitation of the lease-hold estate hereby created and irrevocably assigns and transfers to the Lessor any right to compensation or damages to which the Lessee may be entitled by reason of the condemnation of all or part of the Leased Premises or the leasehold estate; provided, however, that Lessee shall retain and have the right to make claim against the condemning authority for relocation or moving expenses or other similar claim which is allowable solely to Lessee.

		
	1.
	Notices

		
	.
	All notices, statements, demands, requests, consents, approvals, authorizations, offers, agreements, appointments or designations under this Lease by either party to the other shall be in writing and shall be sufficiently given and served upon the other party; if sent by overnight courier service or certified mail, return receipt requested, postage prepaid, and addressed as follows:

To Lessee, addressed to the last known post office address of Lessee or to the Leased   Premises;

To Lessor, addressed to Lessor at the address set forth above or to such other place as Lessor may from time to time designate by notice to Lessee.

		
	2.
	Waiver, Accord and Satisfaction

		
	.
	The waiver by Lessor of any breach of any term, covenant or condition herein contained shall not be deemed to be a waiver of such term, covenant or condition or any subsequent breach of the same or any other term, covenant or condition herein contained.  The subsequent acceptance of rent hereunder by Lessor shall not be deemed to be a waiver of any preceding breach by Lessee of any term, covenant or condition of this Lease, other than the failure of Lessee to pay the particular rental so accepted, regardless of Lessor’s knowledge of such preceding breach at the time of acceptance of such rent.

		
	.
	No payment by Lessee or receipt by Lessor of a lesser amount than the rent herein stipulated shall be deemed to be other than on account of the earliest stipulated rent or other charges payable by Lessee hereunder, nor shall any endorsement or statements on any check or on any letter accompanying any check or payment as rent or other charges be deemed as accord and satisfaction, and Lessor may accept such check or payment without prejudice to Lessor’s right to recover the balance of such rent or other charge or pursue any other remedy in this Lease provided.

		
	3.
	Termination of Lease

		
	.
	It is hereby mutually agreed that either party hereto may terminate this Lease at the end of said term by giving to the other party written notice thereof at least one hundred  eighty (180) days prior thereto, but in default of such notice, this lease shall continue upon the same terms and conditions in force immediately prior to the expiration of the term hereof as are herein contained for a further period of one (1) year and so on from....year....to....year....unless or until terminated by either party hereto, giving the other ninety (90) days written notice for removal previous to expiration of the then current term: PROVIDED, however, that should this Lease be continued for a further period under the terms hereinabove mentioned any allowances given Lessee on the rent during the original term shall not extend beyond such original term, and further provided, however, that if Lessor shall have given such written notice prior to the expiration of any term hereby created of his intention to change the terms and conditions of this Lease, and Lessee shall not within (10) days 

10

EXHIBIT 10.1 BERGEY ROAD LEASE

from such notice notify Lessor of Lessee’s intention to vacate the demised premises at the end of the then current term, Lessee shall be considered as Lessee under the terms and conditions mentioned in such notice for a further term as above provided, or for such further term as may be stated in such notice.  In the event that Lessee shall give notice, as stipulated in this Lease, of intention to vacate the demised premises at the end of the present term, or any renewal or extension thereof, and shall fail or refuse so to vacate the same on the date designated by such notice, then it is expressly agreed that Lessor shall have the option either (a) to disregard the notice so given as having no effect, in which case all the terms and conditions of this Lease shall continue thereafter with full force precisely as if notice had not been given, or (b) Lessor may, at any time within thirty 
days after the present term or any renewal or extension thereof, as aforesaid, give the said Lessee ten (10) days written notice of his intention to terminate the said Lease; whereupon the Lessee expressly agrees to vacate said premises at the expiration of the said period of ten days specified in said notice.  All powers granted to Lessor by this Lease may be exercised and all obligations imposed upon Lessee by this Lease shall be performed by Lessee as well during any extension of the original term of this Lease as during the original term itself.

		
	4.
	Performance of Covenants

		
	.
	Without limitation upon any other provision of this Lease, in the event  Lessee fails to perform any covenant or observe any condition to be performed or observed by Lessee hereunder, including but not limited to Lessee’s covenants of repair and maintenance,  Lessor shall have the right, at Lessor’s sole option, subject to at least five (5) days prior written notice to Lessee (or without notice in case of emergency) to perform such covenant or to cause such condition to be observed; and the cost to Lessor of so proceeding, plus 20% of such cost to cover Lessor’s overhead and other indirect costs associated therewith, shall be due and payable by Lessee to Lessor promptly upon Lessor’s notifying Lessee of the amount so owing.  The provisions of this Article shall survive termination of this Lease.

.Lessor’s proceeding under this Article shall not be deemed to be a waiver of Lessor’s rights against Lessee arising because of Lessee’s default, nor shall Lessor’s actions be considered as curing any default or estopping Lessor from proceedings against Lessee as provided for in Article 21; and any sums as are payable to Lessor under this Article 28 shall be in addition to any damages and other sums as may be payable by Lessee by reason of default hereunder.

		
	5.
	Use of Common Areas:  Parking

		
	.
	Lessee shall have non-exclusive right, in common with others, to the use of any common entrances, lobbies, ramps, drives, stairs and similar access and service ways and common areas in and adjacent to the Building of which the Leased Premises are a part, subject to such nondiscriminatory rules and regulations as may be adopted by Lessor.

		
	.
	Lessee shall be entitled to park in common with other tenants of Lessor.  Lessee agrees not to overburden the parking facilities and agrees to cooperate with Lessor and other tenants in the use of parking facilities.  Lessor reserves the right in its absolute discretion to determine whether parking facilities are becoming crowded and, in such event, to allocate parking spaces among Lessee and other tenants.

29.  Use of  Premises                        

29.01  The Leased Premises may be used and occupied only for purposes allowed under LI Light Industrial Zoning of Hatfield Township Zoning Ordinance  and no other purpose or purposes without Lessor’s written consent.  Lessee shall first obtain all governmental permits and licenses as may be required by Lessee’s use and occupancy of the Leased Premises; and Lessee at all times shall promptly comply with all laws, ordinances, orders, and regulations affecting the Leased Premises and their cleanliness, safety, occupation and use.  Lessee shall not do or permit anything to be done in or about the Leased Premises, or bring or keep anything  in the Leased Premises that will in any way increase the existing premium rates or cause suspension or termination of the fire insurance upon the Building.  Lessee will not perform any act or carry on any practices that may injure the Building or be a nuisance or menace to Lessees of adjoining premises.

29.02  Hazardous Materials

As used in this Lease, the term “Hazardous Material” means any flammable items, explosives, radioactive materials, hazardous or toxic substances, material or waste related materials, including any substances defined as or included in the definition of “Hazardous substances”, “hazardous wastes”, “hazardous materials” or “toxic substances” now or subsequently regulated under any applicable federal, state or local laws or regulation, including without limitation, petroleum-based products, paints, solvents, cyanide, DDT, printing inks, acids, pesticides, ammonia compounds and other chemical products, asbestos, PCB’s and similar 

11

EXHIBIT 10.1 BERGEY ROAD LEASE

compounds, and including any different products and materials which are subsequently found to have an adverse effect on the environment or the health and safety of persons.   Lessee shall not cause or permit any Hazardous Material to be generated, produced, brought upon, used, stored, treated or disposed of in or about the Property by Lessee, its agents, employees, contractors, sublessees or invitees without the prior written consent of the Lessor.  Lessor shall be entitled to take into account such other factors or facts as Lessor may determine to be relevant in determining whether to grant or withhold consent to Lessee’s proposed activity with respect to Hazardous Material. In no event, however, shall Lessor be required to consent to the installation or use of any storage tanks on the Property.

29.03  Compliance with the Americans with Disabilities Act. Tenant, at Tenant’s sole cost, shall be responsible for compliance with all provisions of the Americans with Disabilities Act, as amended, with regard to all interior spaces of the Leased Premises, excluding ingress and egress doors or openings unless Lessee changes the layout and entries during their tenancy.  Tenant shall indemnify Landlord for any violations of the provisions of the Americans with Disabilities Act in accordance with the indemnification provisions of the Lease.  Landlord shall be responsible for compliance with the Americans with Disabilities Act for those portions of the Leased Premises other than the Tenant’s Leased Premises or the leased spaces of other tenants. 

		
	1.
	Arbitration

		
	.
	All claims, disputes and other matters in question, arising out of, or relating to, this Lease or the breach thereof, other than a claim relating to the payment of rent or additional rent, shall be decided by arbitration in Philadelphia, Pennsylvania, before  three arbitrators who shall be selected and which proceedings shall be conducted in accordance with the then current rules for commercial arbitration of the American Arbitration Association.  The party desiring such arbitration shall give written notice to that effect to the other party, and shall send a copy thereof to the Philadelphia office of the American Arbitration Association.

The demand for arbitration shall be made within a reasonable time after the claim, dispute or other matter in question has arisen, and in no event shall be made after the date when institution of legal or equitable proceeding based on such claim would be barred by the applicable statute of limitation.  The decision of the arbitrators shall be final and binding on the parties, and judgment upon the award may be entered in any court having jurisdiction thereof.  All fees and expenses of the arbitration shall be borne equally by the parties.

31.  Miscellaneous Provisions

		
	A.
	Whenever the singular number is used in this Lease and when required by the context, the same shall include the plural, and the gender shall include the masculine, feminine and neuter genders, and the word “person” or “it” shall include individual (s), partnership, corporation, firm, or association.  If there is more than one Lessee, the obligations imposed under this Lease upon Lessee shall be joint and several.

B.    The term “Lessor” as used in this Lease, so far as covenants or obligation on the part of Lessor are concerned, shall be limited to mean and include only the owner or the owner’s agents at the time in question of the fee or of underlying leasehold estate in the Leased Premises, and in the event of any transfer, assignment or other conveyance or transfers of any such title or lease-hold, the Lessor herein named (and in the event of any transfer, assignment or other transfers or conveyances, the then grantor)  shall be automatically freed and relieved, from and after the date of such transfer, assignment or conveyance, of all liability as respect to the performance of any covenants or obligations on the part of Lessor contained in this Lease thereafter to be performed; and without further agreement, the transferee of such title shall be deemed to have assumed and agreed to observe and perform any and all obligations of the Lessor hereunder, during its ownership of the Leased Premises.

C.    The headings or titles to the paragraphs of this Lease are not a part of this Lease and shall have no effect upon the construction or interpretation of any part of this Lease.

		
	A.
	This instrument contains all of the agreements and conditions made between the parties to this Lease and may not be modified orally or in any other manner than by an agreement in writing signed by all the parties of this Lease.

		
	B.
	Time is of the essence of each term and provisions of this Lease.

		
	C.
	Except as otherwise expressly stated, each payment required to be made by Lessee shall be in addition to and not in substitution for other payments to be made by Lessee.

		
	D.
	This lease shall be construed, interpreted and governed by the laws of the Commonwealth of Pennsylvania.

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EXHIBIT 10.1 BERGEY ROAD LEASE

		
	E.
	Subject to Articles 19 and 32B, the terms and provisions of this Lease shall be binding upon and inure to the benefit of the respected heirs, executors, administrators, successors and assigns of Lessor and Lessee, provided that, in any event, Lessor’s liability hereunder shall be limited to Lessor’s title or interest in the Building and Leased Premises.

		
	F.
	Lessor and Lessee intend and believe that each provision in this  Lease complies with all applicable local, state and federal laws and judicial decisions.  However, if any provision or provisions, or if any portion of any provision or provisions, in this Lease is found by a court of law to be in violation of any local, state or federal ordinance, statute, law, administrative or judicial decision, or public policy, and if such court should declare such portion, provision or provisions of this Lease to be illegal, invalid, unlawful, void or  unenforceable as written, then it is the intent both of Lessor and Lessee that such portion, provision or provisions shall be given force to the fullest possible extent that they are legal, valid and enforceable, that the remainder of this Lease shall be construed as if such illegal, invalid, unlawful, void or unenforceable portion, provision or provisions were not contained in this Lease, and that the rights, obligations and interest of Lessor and Lessee under the remainder of this Lease shall continue in full force and effect.

J.    Lessee shall not file or record this Lease or a memorandum thereof in any public office.  Any such filing or recording shall constitute a default under this Lease by Lessee.  Lessee hereby irrevocably appoints Lessor its attorney-in-fact to execute any and all documents and to perform all other acts, both at Lessee’s expense, necessary to remove this Lease from record.  This shall exclude any SEC Filings.

K.    Lessor shall have the right, during the term of this Lease or any extension thereof, to relocate Lessee with one hundred eighty (180) days’ notice and shall satisfactorily relocate Lessee at the expense of the Lessor.

L.    The provisions of Exhibit D shall be complied with and adhered to as part of the provision of this lease.

32.   Special provisions

Special provisions of this Lease, designated as Riders One, and Two are attached hereto and are made a part hereof. If none, so state in the following space___________.

IN WITNESS WHEREOF, Lessor and Lessee have executed this lease as of the day and year first above written.

	
			
	 
	 
	LESSOR:

	 
	 
	Bergey Road Industrial Associates I  L.P.

	Attest:
	 
	BY: Campus Business Associates I,  Inc.  General Partner

	/s/ Jennifer A. Altemose
	 
	/s/ Roger D. Altemose

	Jennifer A. Altemose, Secretary
	 
	Roger D. Altemose, President

	 
	 
	 

	 
	 
	LESSEE:

	Attest:
	 
	Torotel Products, Inc.

	/s/ Heath Hancock
	 
	/s/ H. James Serrone

	Heath Hancock, Vice President Of Accounting and Business Analytics
	 
	H. James Serrone, Vice President of Finance, Secretary, and Chief Financial Officer

	 
	 
	 

                

13

EXHIBIT 10.1 BERGEY ROAD LEASE

RENTAL UNIT LOCATION PLAN

EXHIBIT“A” 

PLAN AND SPECIFICATIONS FOR FITOUT WORK

14

EXHIBIT 10.1 BERGEY ROAD LEASE

EXHIBIT “B”
1.         Sign Criteria

This criteria establishes the uniform policies for all tenant sign identification  at 2880 Bergey Road, Hatfield, PA.  This criteria has been established for the purpose of maintaining the overall appearance of the Building.  Conformance will be strictly enforced.  Any sign installed that does not conform to the sign criteria will be brought into conformity at the expense of the Lessee.

		
	A.
	General Requirements

		
	1.
	The sign shall be provided by Lessee, lettering and installation shall be paid for by Lessee.  See below.

		
	2.
	Lessor shall approve all copy and logo design prior to the installation of the sign.

		
	3.
	Lessor shall direct the placement of all Lessee signs and the method of attachment to the Building.

		
	4.
	Lessee shall be responsible for the fulfillment for all requirements for this criteria.

		
	B.
	General Specifications

		
	1.
	The sign’s dimensions shall be as specified below.

		
	2.
	Lessee shall be allowed one sign regardless of size of occupancy.

		
	3.
	All signs lettering shall be gold in color.  No other color shall be allowed unless specifically approved in writing by Lessor.

		
	4.
	No electrical or audible signs will be allowed.

		
	5.
	Upon the removal of any sign, any damage to the Building will be repaired by Lessee.

		
	6.
	Except as provided herein, no advertising placards, banners, pennants, names, insignias, trademarks, or other descriptive material shall be affixed or maintained upon any automated machine, glass panes of the building, landscape areas, street, or parking areas.

15

EXHIBIT 10.1 BERGEY ROAD LEASE

 EXHIBIT  “C’

		
	1.
	Window Treatments

All window treatments shall consist of vertical blinds which shall be off-white in appearance from the exterior side.

                

16

EXHIBIT 10.1 BERGEY ROAD LEASE

    EXHIBIT “D”        

17

EXHIBIT 10.1 BERGEY ROAD LEASE

RIDER NUMBER ONE (1)

Rider Number One (1) to Lease dated the -__10__ Day of July, 2014

between Bergey Road Industrial Associates (Lessor) and Torotel Products, 

Inc. (Lessee).

PER DIEM OCCUPANCY

Lessee shall have the right to occupy the premises prior to or later 

than August 1, 2014 for a per diem amount of One Hundred Thirteen Dollars 

and 41/100 Cents ($113.41) to be paid prior to occupancy.

RIDER NUMBER TWO (2)

Rider Number Two (2) to Lease dated _10__Day of July, 2014 between

Bergey Road Industrial Associates (Lessor) and Torotel Products Inc. (Lessee).

Should Lessee want to terminate the lease after the three year period ending 

July 31, 2017, the Lessor will allow termination with the proper notice

as outlined in Section 27 of the lease.  Lessor agrees to accept, as the minimum 

rent for the Lease Premises for the Lease Term of Three Years, the sum of One 

Hundred Four Thousand Six Hundred Eighty Five and 12/100 ($104,685.12), 

If Lessee does not terminate the lease at the end of the first Three 

(3) Years, the Lease will continue for the full term of Five (5) Years, and Lessor 

will allow termination with the proper notice as outlined in Section 27 of the 

lease.

18EX-10.30

 Exhibit 10.30 

Execution Copy 
 EMPLOYMENT
AGREEMENT 
 EMPLOYMENT AGREEMENT (“Agreement”) dated as of July 2, 2014 by and between DynCorp International LLC (the
“Company”) and Gordon Walsh (the “Executive”) (each a “Party” and together, the “Parties”). 

WHEREAS, the Parties wish to establish the terms of the Executive’s employment as Chief Executive Officer of the Company. 

NOW THEREFORE, in consideration of the premises and mutual considerations herein and for other good and valuable consideration: 

1. Employment and Acceptance. The Company shall employ the Executive, and the Executive shall accept employment, subject to the terms
of this Agreement as of the date first written above (the “Effective Date”). 
 2. Term. Subject to earlier termination
pursuant to Section 5 of this Agreement, this Agreement and the employment relationship hereunder shall continue from the Effective Date until the fourth anniversary of the Effective Date (the “Initial Term”) and shall automatically
renew for one (1) year intervals thereafter (each, an “Extended Term”) unless either Party shall have given written notice to the other at least six (6) months prior to the end of the Initial Term or an Extended Term that it does
not wish to extend the Term. As used in this Agreement, the “Term” shall refer to the period beginning on the Effective Date and ending on the date the Executive’s employment terminates in accordance with Section 5 (the
“Termination Date”). In the event that the Executive’s employment with the Company terminates, the Company’s obligation to continue to pay, after the date of termination, Base Salary (as defined below), Bonus (as defined below)
and other unaccrued benefits shall terminate except as may be provided for in Section 5. 
 3. Duties, Title and Location. 

3.1 Title. The Company shall employ the Executive to render exclusive and full-time services to the Company and its subsidiaries. The
Executive shall serve in the capacity of Chief Executive Officer, and shall report directly to the Board of Directors of the Company (the “Board”). 

3.2 Duties. The Executive will have such duties, powers and authorities as are commensurate with his position as Chief Executive
Officer of the Company and as may be reasonably assigned by the Board from time to time. The Executive will devote his full working-time and attention (other than due to physical or mental incapacity) to the performance of such duties and to the
promotion of the business and interests of the Company and its subsidiaries. The Executive shall be permitted to participate in charitable and civic activities; provided that such activities do not conflict with the Executive’s duties under
this Agreement or in any way violate Section 6 of this Agreement. 
 3.3 Location. The Executive shall perform his full-time
services to the Company and its subsidiaries at the Company’s Ft. Worth, Texas location; provided that the Executive shall be required to travel to other locations from time to time as required by the Company’s business. 

 4. Compensation and Benefits by the Company. As compensation for all services rendered
pursuant to this Agreement, the Company shall provide the Executive the following during the Term: 
 4.1 Base Salary. The Company
will pay to the Executive an annual base salary of $950,000.00, payable in accordance with the customary payroll practices of the Company (“Base Salary”). The Base Salary shall be reviewed by the Board or, if so delegated by the Board, by
the Compensation Committee of the Board (the “Compensation Committee”), and shall be reviewed on an annual basis during the Term for possible increase but not decrease (such modified Base Salary shall then be referred to for purposes of
this Agreement as the “Base Salary”). 
 4.2 Bonus. With respect to each fiscal year during the Term, the Executive shall
be eligible to receive an annual bonus (the “Bonus”) with a target amount of one-hundred percent (100%) of Base Salary (“Target”) and a potential of up to two-hundred percent (200%) of Base Salary, to be paid at the
discretion of the Board or, if so delegated by the Board, the Compensation Committee based on meeting or exceeding the Company’s annual goals. The Bonus for each fiscal year during the Term, if any, shall be payable to the Executive within two
and one-half months following the fiscal year to which the Bonus relates. Except as otherwise set forth in Section 5, the Executive must be employed with the Company, and not have given notice of resignation, as of the last day of the fiscal
year to which the Bonus relates in order to receive a Bonus. For the first two (2) fiscal years (FY14 and FY15), the Executive’s Bonus is guaranteed to be at least at Target (100%), payable in accordance with, and subject to the
requirements of, this Section 4.2. 
 4.3 Equity. The Executive shall be granted a profits interest (the “Award”) in
DynCorp Management LLC equal, as of the Effective Date, to 1.50% of the realized appreciation of the Company in excess of certain thresholds set by the Compensation Committee in its sole discretion. The Award shall be subject to the terms and
conditions of the limited liability company agreement of DynCorp Management LLC, the profits interest plan (the “Plan”) and an award agreement, including terms regarding vesting and forfeiture to be determined by the Board or the
Compensation Committee. 
 4.4 Long Term Cash Incentive. In the event of a Change in Control (as defined below), subject to the
Executive’s continued employment with the Company through such Change in Control, the Executive shall receive a long term cash incentive bonus equal to $2,000,000 (the “Cash Incentive Bonus”). The Cash Incentive Bonus shall be paid to
the Executive within the sixty (60) day period following such Change in Control (the “Payment Date”). Notwithstanding the foregoing, in the event that Executive’s employment is terminated (x) by the Company without Cause (as
defined below) or (y) by the Executive for Good Reason (as defined below), in each case, during the period that begins forty-five (45) days prior to the date the Company enters into a definitive agreement that if consummated would result
in a Change in Control and ends on the date such Change in Control is consummated, Executive shall receive the Cash Incentive Bonus on the Payment Date. 

4.5 Participation in Employee Benefit Plans. The Executive shall be entitled, if and to the extent eligible, to participate in all of
the applicable benefit plans and perquisite programs of the Company, which are available to other senior executives of the Company. The Company may at any time or from time to time amend, modify, suspend or terminate any

  
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employee benefit plan, program or arrangement for any reason without the Executive’s consent if such amendment, modification, suspension or termination is consistent with the amendment,
modification, suspension or termination for other executives of the Company. The Company agrees to provide the Executive with term life insurance with a death benefit of at least $10,000,000, payable to Executive’s designated beneficiaries, at
the Company’s expense during the Term. Executive shall be entitled to five (5) weeks of vacation leave per year; provided, however, in the event that the two (2) highest ranking Company employees (other than the
Executive) receive six (6) weeks of vacation leave per year, the Executive shall also be entitled to six (6) weeks of vacation leave per year. 

4.6 Expense Reimbursement. 

(a) The Executive shall be entitled to receive reimbursement for all appropriate business expenses incurred by him in connection with his
duties under this Agreement in accordance with the policies of the Company as in effect from time to time. 
 (b) The Company shall
reimburse the Executive for reasonable costs and expenses relating to the Executive’s relocation to the Ft. Worth, Texas metropolitan area in accordance with the Company’s policies and procedures, subject to a maximum aggregate
reimbursement of $250,000 and subject to receipt of supporting documentation. Should the Executive terminate his employment without Good Reason or the Company terminates the Executive’s employment for Cause (as those terms are defined in
Section 5.1) prior to the two (2) year anniversary of the Effective Date, the Executive shall be required to reimburse the Company for all amounts previously paid to the Executive pursuant to this Section 4.6(b). 

(c) The Company’s payment or reimbursement of any cost or expense pursuant to Section 4.6(b) shall be paid or reimbursed to
Executive within sixty (60) days following the date the Executive submits appropriate supporting documentation of such costs or expenses to the Company, and any other payment or reimbursement for expenses under this Section 4.6 shall in
any event be made on or before the last day of the Executive’s taxable year following the taxable year in which the expense was incurred. 

5. Termination of Employment. 

5.1 By the Company for Cause; by the Executive Without Good Reason or Non-Renewal by the Executive. If: (i) the Company terminates
the Executive’s employment with the Company for Cause (as defined below), (ii) the Executive terminates his employment without Good Reason upon at least fifteen (15) days prior written notice or (iii) the Executive’s
employment terminates due to the Executive giving the Company written notice of his election not to renew the Term pursuant to Section 2 of this Agreement, the Executive shall be entitled to receive the following: 

(a) the Executive’s accrued but unpaid Base Salary to the date of termination and any employee benefits that the Executive is entitled to
receive pursuant to the employee benefit plans of the Company and its subsidiaries (other than any severance plans) in accordance with the terms of such employee benefit plans; 

(b) expenses reimbursable under Section 4.6 above incurred but not yet reimbursed to the Executive to the date of termination; 

  
 3 

 (c) the Executive shall receive payment for all accrued and unused vacation days, payable in
accordance with Company policy; and 
 (d) the unpaid portion of the Bonus, if any, relating to any year prior to the fiscal year of the
Executive’s termination, payable in accordance with Section 4.2 above (together with (a), (b) and (c), the “Accrued Benefits”). 

For the purposes of this Agreement, “Cause” means as determined by a majority vote of the Board, (i) willful and continued
failure by the Executive to substantially perform his duties with the Company; (ii) willful conduct by the Executive that causes material harm to the Company, its subsidiaries or affiliates, monetarily or otherwise; (iii) the
Executive’s felony conviction arising out of on or off-duty conduct occurring during his employment; (iv) willful malfeasance or willful misconduct by the Executive in connection with his duties and (v) material breach by the
Executive of this Agreement and/or the Company’s policies. Company shall provide written notice to Executive if the Board determines that Cause exists, and, except for Cause under item (iii) above, Executive shall then have thirty
(30) days to cure any condition that constitutes Cause. 
 For the purposes of this Agreement, “Good Reason” means (i) a
reduction in Executive’s then current Base Salary or Bonus at Target, (ii) the Company’s failure to comply with its material obligations under this Agreement, (iii) a substantial diminution of Executive’s duties, authority
or responsibilities with the Company; provided that neither the merger, sale or acquisition of business units, subsidiaries or assets, nor any similar corporate transaction, shall, by itself, constitute a diminution of duties, authority or
responsibilities for purposes hereof, (iv) a change in Executive’s reporting relationship following which the Executive does not report to the Board, (v) the Company employs or otherwise retains an Executive Chairman other than the
Executive, or (vi) following a Change in Control, any of the reasons in (i) through (v) hereof or the failure of the Company (or any affiliate) to provide the Executive a long term incentive benefit with an aggregate value
substantially not less favorable to the long term incentive benefit (including, but not limited to, the Award and Cash Incentive Bonus) granted to the Executive by the Company or its affiliates. Each of the foregoing events will cease to constitute
Good Reason unless Executive gives the Company notice of Executive’s intention to resign his position with the Company within sixty (60) days after Executive’s knowledge of the occurrence of such event, and the Company shall have
thirty (30) days from its receipt of such notice to cure any condition that constitutes Good Reason. 
 5.2 Due to Death or
Disability. If (x) the Executive’s employment terminates due to his death or (y) the Company terminates the Executive’s employment with the Company due to the Executive’s Disability (as defined below), the Executive or
the Executive’s estate will be entitled to the Accrued Benefits and, subject to the Executive’s or his estate’s execution without revocation of a valid release agreement, substantially in the form attached hereto as Exhibit A, within
forty-five (45) days following the date of termination of the Executive’s employment, beginning on the 60th day following such termination, the Executive or the Executive’s estate shall receive the severance payments set forth in
paragraph (a) of this Section 5.2. 
 (a) a prorated portion of the Bonus that would have been payable to the Executive through
the Termination Date; based on the Company’s performance targets being met from the beginning of the fiscal year through the Termination Date, payable within two and one-half months following the fiscal year to which the Bonus relates. 

  
 4 

 For the purposes of this Agreement, “Disability” means that, as a result of a permanent
physical or mental injury or illness, the Executive has been unable to perform the essential functions of his job with or without reasonable accommodation for (i) 90 consecutive days or (ii) a period of 180 days in any 12-month period.

 5.3 Non-Renewal by the Company; Termination By the Company Without Cause or By the Executive for Good Reason. If during the Term
(i) the Executive’s employment terminates due to the Company giving the Executive written notice of its election not to renew the Term pursuant to Section 2 of this Agreement, (ii) the Company terminates the Executive’s
employment without Cause (which may be done at any time without prior notice) or (iii) the Executive terminates his employment for Good Reason, then the Executive will be entitled to the Accrued Benefits and, subject to the Executive’s
execution without revocation of a valid release agreement, substantially in the form attached hereto as Exhibit A, within forty-five (45) days following the date of termination of the Executive’s employment, the Executive shall receive the
severance payments and benefits set forth in paragraphs (a) and (b) of this Section 5.3. 
 (a) a severance payment equal to
two (2) times (the “Severance Multiplier”) the sum of (x) the Executive’s Base Salary plus (y) the Bonus at Target, payable in equal installments over twenty-four (24) months in accordance with the normal Company
payroll process beginning on the sixtieth (60th) day following the Termination Date; and 

(b) reimbursement on a monthly basis, beginning on the 60th day following the Termination Date, of the cost of continuation coverage of group
health coverage pursuant to the Consolidated Omnibus Budget Reconciliation Act of 1986, as amended (“COBRA”), for a maximum of eighteen (18) months following the Termination Date to the extent the Executive elects such continuation
coverage and is eligible and subject to the terms of the plan and applicable law; provided that if the Executive becomes eligible to receive coverage from a new employer he shall cease to be entitled to such reimbursement. 

Notwithstanding the foregoing, if the Executive’s employment terminates under this Section 5.3 within twenty-four (24) months
following the Effective Date, the Executive may, in the Executive’s sole discretion, provide written notice to the Company at any time within sixty (60) days following the Termination Date that the Executive elects to reduce the Severance
Multiplier from two (2) to 0.75, payable in equal monthly installments over nine (9) months in accordance with the normal Company payroll process. If the Executive makes this election, the non-solicitation period set forth in
Section 6.3(a) shall be reduced from twenty-four (24) months to nine (9) months and the non-competition period set forth in Section 6.4 shall be reduced from twelve (12) months to nine (9) months. 

Notwithstanding the foregoing, if the Executive’s employment terminates under this Section 5.3 on or after twenty-four
(24) months following the Effective Date, the Executive may, in the Executive’s sole discretion, provide written notice to the Company at any time within sixty (60) days following the Termination Date that the Executive elects to
reduce the Severance Multiplier from two (2) to one (1), payable in equal monthly installments over twelve (12) months in accordance with the normal Company payroll process. If the Executive makes this election, the non-solicitation period
set forth in Section 6.3(a) shall be reduced from twenty-four (24) months to twelve (12) months. 

  
 5 

 Notwithstanding the foregoing, the Company shall have no obligation to provide the severance
payments or benefits set forth above in the event that the Executive breaches any of the provisions of Section 6. 
 5.4 In
Connection With a Change in Control. In the event that there is a Change in Control (as defined below) and Executive’s employment with the Company and its subsidiaries terminates either ninety (90) days prior to or within three
(3) years following such Change in Control (x) by the Company and any of its subsidiaries without Cause or (y) by Executive for Good Reason, the Executive will be entitled to the Accrued Benefits and, subject to the Executive’s
execution without revocation of a valid release agreement, substantially in the form attached hereto as Exhibit A, within forty-five (45) days following the date of termination of the Executive’s employment, the Executive shall receive the
severance payments and benefits set forth in paragraphs (a), (b) and (c) of this Section 5.4. 
 (a) a prorated portion of
the Bonus that would have been payable to the Executive through the Termination Date, based on the Company’s performance targets being met from the beginning of the fiscal year through the Termination Date, payable within two and one-half
months following the fiscal year to which the Bonus relates; and 
 (b) a severance payment equal to three (3) times the sum of
(x) Base Salary plus (y) Bonus at Target, payable in equal installments over thirty-six (36) months in accordance with the normal Company payroll process beginning on the sixtieth
(60th) day following the Termination Date; and 
 (c) reimbursement on a monthly
basis, beginning on the 60th day following such termination, of the cost of continuation coverage of group health coverage pursuant to COBRA, for a maximum of eighteen (18) months following the Termination Date to the extent the Executive
elects such continuation coverage and is eligible and subject to the terms of the plan and applicable law; provided that if the Executive becomes eligible to receive coverage from a new employer he shall cease to be entitled to such
reimbursement. 
 Notwithstanding the foregoing, the Company shall have no obligation to provide the severance payments or benefits set
forth above in the event that the Executive breaches any of the provisions of Section 6. 
 For the avoidance of doubt, in the event
the Executive’s employment is terminated in accordance with this Section 5.4, the Executive shall not be entitled to any payments or benefits under Section 5.3. 

For purposes of this Agreement, “Change in Control” means the first to occur of any of the following events (i) one Person who is
not an Investor or an Affiliate of an Investor becomes the beneficial owner, directly or indirectly, of more than fifty percent (50%) of the combined voting power of the then issued and outstanding securities of the Company or the Owner, (ii) a
reduction in Investor’s beneficial ownership, directly or indirectly, to less than thirty percent (30%) of the combined voting power of the then issued and outstanding securities of the Company or the Owner or (iii) the sale, transfer or other
disposition of all or substantially 

  
 6 

 
all of the business and assets of the Company or the Owner, whether by sale of assets, merger or otherwise (determined on a consolidated basis), in a single or related series of transactions, to
one Person other than an Investor or an Affiliate of an Investor. For purposes of this Agreement, the “Owner” shall mean Defco Holdings, Inc. 

For purposes of this Agreement, “Affiliate” means, with respect to any entity, any other corporation, organization, association,
partnership, sole proprietorship or other type of entity, whether incorporated or unincorporated, directly or indirectly controlling or controlled by or under direct or indirect common control with such entity. 

For purposes of this Agreement, “Investor” means Cerberus Series Four Holdings LLC and Cerberus Partners II, L.P. and their
Affiliates. 
 For purposes of this Agreement, “Person” means a person, as such term is used for purposes of Section 13(d) or
14(d) of the Securities Exchange Act of 1934, as amended (or any successor thereto). 
 5.5 No Mitigation. The Executive shall be
under no obligation to seek other employment after his termination of employment with the Company and the obligations of the Company to the Executive which arise upon the termination of his employment pursuant to this Section 5 shall not be
subject to mitigation. 
 5.6 Removal from any Boards and Position. If the Executive’s employment is terminated for any reason
under this Agreement, he shall be deemed to resign (i) if a member, from the Board or board of directors of any subsidiary of the Company or any other board to which he has been appointed or nominated by or on behalf of the Company and
(ii) from any position with the Company or any subsidiary of the Company, including, but not limited to, as an officer of the Company and any of its subsidiaries. 

6. Restrictions and Obligations of the Executive. 

6.1 Confidentiality. (a) During the course of the Executive’s service to the Company (prior to and during the Term), the
Executive has had and will have access to certain trade secrets and confidential information relating to the Company and its subsidiaries and affiliates (the “Protected Parties”) which is not readily available from sources outside the
Company. The confidential and proprietary information and, in any material respect, trade secrets of the Protected Parties are among their most valuable assets, including but not limited to, their customer, supplier and vendor lists, databases,
competitive strategies, computer programs, frameworks, or models, their marketing programs, their sales, financial, marketing, training and technical information, their product development (and proprietary product data) and any other information,
whether communicated orally, electronically, in writing or in other tangible forms concerning how the Protected Parties create, develop, acquire or maintain their products and marketing plans, target their potential customers and operate their
retail and other businesses. The Protected Parties invested, and continue to invest, considerable amounts of time and money in their process, technology, know-how, their data systems and data bases (together, with all the information described
above, hereinafter collectively referred to as “Confidential Information”), obtaining and developing the goodwill of their customers and their other external relationships, and any misappropriation or unauthorized disclosure of
Confidential Information in any form would irreparably harm the Protected Parties. The Executive acknowledges that such 

  
 7 

 
Confidential Information constitutes valuable, highly confidential, special and unique property of the Protected Parties. The Executive shall hold in a fiduciary capacity for the benefit of the
Protected Parties all Confidential Information relating to the Protected Parties and their businesses, which shall have been obtained by the Executive during the Executive’s employment by the Company or its subsidiaries and which shall not be
or become public knowledge (other than by acts by the Executive or representatives of the Executive in violation of this Agreement). The Executive shall not, during the period the Executive is employed by the Company or its subsidiaries or at any
time thereafter, disclose any Confidential Information, directly or indirectly, to any person or entity for any reason or purpose whatsoever, nor shall the Executive use it in any way, except (i) in the course of the Executive’s employment
with, and for the benefit of, the Protected Parties, (ii) to enforce any rights or defend any claims hereunder or under any other agreement to which the Executive is a party, provided that such disclosure is relevant to the
enforcement of such rights or defense of such claims and is only disclosed in the formal proceedings related thereto, (iii) when required to do so by a court of law or in connection with any administrative proceeding, by any governmental agency
or regulatory organization or by any administrative or legislative body (including a committee thereof) with jurisdiction to order him to divulge, disclose or make accessible such information, provided that the Executive shall give
prompt written notice to the Company of such requirement (unless directed by governmental or judicial authority not to do so), disclose no more information than is so required, and cooperate with any attempts by the Company to obtain a protective
order or similar treatment, (iv) as to such Confidential Information that becomes generally known to the public or trade without his violation of this Section 6.1(a) or (v) to the Executive’s spouse, attorney and/or his personal
tax and financial advisors as reasonably necessary or appropriate to advance the Executive’s tax, financial and other personal planning (each an “Exempt Person”), provided, however, that any disclosure or use of
Confidential Information by an Exempt Person shall be deemed to be a breach of this Section 6.1(a) by the Executive. The Executive shall take all reasonable steps to safeguard the Confidential Information and to protect it against disclosure,
misuse, espionage, loss and theft. The Executive understands and agrees that the Executive shall acquire no rights to any such Confidential Information. 

(b) All files, records, documents, drawings, specifications, data, computer programs, evaluation mechanisms and analytics and similar items
relating thereto or to the Business (for the purposes of this Agreement, “Business” shall be as defined in Section 6.4 hereof), as well as all customer lists, specific customer information, compilations of product research and
marketing techniques of the Company and its subsidiaries, whether prepared by the Executive or otherwise coming into the Executive’s possession, shall remain the exclusive property of the Company and its subsidiaries. 

(c) It is understood that while employed by the Company or its subsidiaries, the Executive will promptly disclose to it, and assign to it the
Executive’s interest in any invention, improvement or discovery made or conceived by the Executive, either alone or jointly with others, which arises out of the Executive’s employment. At the Company’s request and expense, the
Executive will assist the Company and its subsidiaries during the period of the Executive’s employment by the Company or its subsidiaries and thereafter (but subject to reasonable notice and taking into account the Executive’s schedule) in
connection with any controversy or legal proceeding relating to such invention, improvement or discovery and in obtaining domestic and foreign patent or other protection covering the same. 

  
 8 

 6.2 Cooperation. During the Term and any period thereafter, the Executive shall cooperate
fully with any investigation or inquiry by the Company, or any governmental or regulatory agency or body, concerning the Company or its subsidiaries’ or affiliates’ operations; provided that the Company shall reimburse the Executive for
any reasonable expenses incurred during such cooperation. 
 6.3 Non-Solicitation or Hire. During the Term and, following the
termination of the Executive’s employment for any reason, except as set forth in Section 5.3, for a period of twenty-four (24) months, the Executive shall not (a) directly or indirectly solicit, attempt to solicit or induce
(x) any party who is a customer of the Company or its subsidiaries, who was a customer of the Company or its subsidiaries at any time during the twelve (12) month period immediately prior to the date the Executive’s employment
terminates or who is a prospective customer that has been identified and targeted by the Company or its subsidiaries as of the Termination Date, for the purpose of marketing, selling or providing to any such party any services or products offered by
or available from the Company or its subsidiaries, or (y) any supplier to the Company or any subsidiary to terminate, reduce or alter negatively its relationship with the Company or any subsidiary or in any manner interfere with any agreement
or contract between the Company or any subsidiary and such supplier or (b) hire any employee of the Company or any of its subsidiaries or affiliates (a “Current Employee”) or any person who was an employee of or consultant to the
Company or any of its subsidiaries or affiliates during the six (6) month period immediately prior to the date the Executive’s employment terminates (a “Former Employee”) or directly or indirectly solicit or induce a Current or
Former Employee to terminate such employee’s employment relationship with the Protected Parties in order, in either case, to enter into a similar relationship with the Executive, or any other person or any entity; provided, however, that
nothing in Section 6.3(b) (i) shall be deemed to prohibit general solicitations for employment through advertisements or other means that may be seen by employees of the Company or its subsidiaries or affiliates or (ii) preclude the
Executive from employing any person whose employment with the Company or any of its subsidiaries or affiliates was involuntarily terminated. 

6.4 Non-Competition. Executive understands that the Company invests significant resources in the training and development of its
executives and that in his position as Chief Executive Officer, he had access to Confidential Information. During the Term and, except as set forth in Section 5.3, for a period of twelve (12) months following the termination of the
Executive’s employment for any reason, the Executive shall not, directly or indirectly participate in the ownership (other than through mutual funds or similar forms of investment), control or management of, or be employed as an employee,
consultant, advisor or agent of any business, or in any other capacity, for the following companies: AAR, AECOM, AIRINC, Alsalam, BAE, Boeing, Booz Allen Hamilton, CACI, CCE, General Dynamics, DS2, Kay and Associates, Engility, M-1, M-7 Aerospace,
Panesma, Raytheon Technical Services, SOSi, SESI, Sikorsky, YSE, Lockheed Martin, Northrup Grumman, Honeywell, Excelis, CACI, L-3, PAE, Mantech, SAIC, URS, Flour, KBR, DRS Technologies, Finmeccanica, Airbus, Rockwell Collins, Sierra Nevada
Corporation, Leidos, Vectrus or MD Helicopters; provided that, upon the Executive’s termination of employment, the list of companies may be expanded or reduced, in the reasonable discretion of the Company, to reflect changes in the business of
the Company and the persons or entities substantially competing with the Company at such time and such expanded or reduced list of companies shall apply to the extent that the Executive serves in a sales position or an executive position (other than
the general counsel, attorney, corporate secretary or chief compliance officer) with respect to any company on such list at any time during the applicable period set forth above. 

  
 9 

 6.5 Property. The Executive acknowledges that all originals and copies of materials,
records and documents generated by him or coming into his possession during his employment by the Company or its subsidiaries are the sole property of the Company and its subsidiaries (“Company Property”). During the Term, and at all times
thereafter, the Executive shall not remove, or cause to be removed, from the premises of the Company or its subsidiaries, copies of any record, file, memorandum, document, computer related information or equipment, or any other item relating to the
business of the Company or its subsidiaries, except in furtherance of his duties under the Agreement. When the Executive’s employment with the Company terminates, or upon request of the Company at any time, the Executive shall promptly deliver
to the Company all copies of Company Property in his possession or control. 
 6.6 Nondisparagement. The Executive agrees that he
will not at any time (whether during or after the Term) publish or communicate to any person or entity any Disparaging (as defined below) remarks, comments or statements concerning the Company, Cerberus Capital Management, L.P., their parents,
subsidiaries and affiliates, and their respective present and former members, partners, directors, officers, shareholders, employees, agents, attorneys, successors and assigns. “Disparaging” remarks, comments or statements are those that
impugn the character, honesty, integrity or morality or business acumen or abilities in connection with any aspect of the operation of business of the individual or entity being disparaged. Notwithstanding the foregoing, nothing in this
Section 6.6 shall be construed to preclude truthful disclosures in response to lawful process as required by applicable law, regulation, or order or directive of a court, administrative or legislative body, governmental agency or regulatory
organization. 
 7. Remedies; Specific Performance. The Parties acknowledge and agree that the Executive’s breach or threatened
breach of any of the restrictions set forth in Section 6 will result in irreparable and continuing damage to the Protected Parties for which there may be no adequate remedy at law and that the Protected Parties shall be entitled to seek
equitable relief, including specific performance and injunctive relief as remedies for any such breach or threatened or attempted breach, without requiring the posting of a bond. The Executive hereby consents to the grant of an injunction (temporary
or otherwise) against the Executive or the entry of any other court order against the Executive prohibiting and enjoining him from violating, or directing him to comply with any provision of Section 6. The Executive also agrees that such
remedies shall be in addition to any and all remedies, including damages, available to the Protected Parties against him for such breaches or threatened or attempted breaches. In addition, without limiting the Protected Parties’ remedies for
any breach of any restriction on the Executive set forth in Section 6, except as required by law, the Executive shall not be entitled to any payments set forth in Sections 5.2, 5.3, or 5.4 hereof if the Executive has breached the covenants
applicable to the Executive contained in Section 6, the Executive will immediately return to the Protected Parties any such payments previously received under Sections 5.2, 5.3, or 5.4 upon such a breach, and, in the event of such breach, the
Protected Parties will have no obligation to pay any of the amounts that remain payable by the Company under Sections 5.2, 5.3, or 5.4. 

8. Indemnification. The Company agrees at all times during the Executive’s employment with the Company and thereafter, to
indemnify, defend and hold the Executive, his 

  
 10 

 
heirs, estate and legal representatives harmless from any and all claims, liabilities, demands, allegations, causes of action, or other threats, related to and in any way arising out of the
services provided by the Executive at the request of the Company, provided, however, that this indemnification shall not apply to acts or omissions that are the result of conduct that would preclude the Executive from receiving indemnification under
Section 145 of the Delaware General Corporation Law in effect from time to time. Upon receipt of notice of the assertion of any such claim, liability, demand, allegation, cause of action or other threat, the Company shall pay the Executive the
cost of his defense by a counsel mutually acceptable to the Company and Executive, and shall be responsible for the full payment of any judgment including damages or penalties, including punitive damages or penalties, that may be assessed or payable
as a result of a settlement to which the Company and the Executive consent, including the deductible portion of any loss covered by Director and Officer Liability Insurance, applicable to similarly situated employees. Nothing herein shall limit the
rights of the Executive to the protections afforded by the Directors and Officers Liability Insurance, applicable to similarly situated employees, as in effect from time to time or to such other protections as may be afforded to the Executive under
the Company’s certificate of formation, bylaws or limited liability company agreement or operating agreement or under any other agreement, policy or procedure. In the event it is ultimately determined that the Executive is not entitled to be
indemnified by the Company pursuant to this Section 8, the Executive shall reimburse the Company for such expenses previously paid by the Company on behalf of the Executive. 

9. Attorneys’ Fees. The Company shall reimburse the Executive for reasonable attorneys’ fees and costs incurred by the
Executive in connection with the negotiation and execution of this Agreement and any other agreements made between the Executive and the Company or its affiliates in connection with or related to the commencement of the Executive’s employment
hereunder, subject to a maximum aggregate reimbursement of $20,000.00. Any applicable reimbursements shall be made within five (5) days following the Executive’s submission of reasonable documentation to the Company evidencing the amount
of such attorneys’ fees. 
 10. Other Provisions. 

10.1 Notices. Any notice or other communication required or which may be given hereunder shall be in writing and shall be delivered
personally, sent by facsimile transmission or sent by certified, registered or express mail, postage prepaid or overnight mail and shall be deemed given when so delivered personally, or sent by facsimile transmission or, if mailed, four
(4) business days after the date of mailing or one (1) business day after overnight mail, as follows: 
 (a) If the Company, to:

 1700 Old Meadow Road 

McLean, VA 22102 
 Attention:
General Counsel 
 Telephone: (703) 462-7224 

Fax: (571) 722-0253 
 (b)
If the Executive, to the Executive’s home address reflected in the Company’s records. 

  
 11 

 10.2 Entire Agreement. This Agreement contains the entire agreement between the Parties
with respect to the subject matter hereof and supersedes all prior agreements, written or oral, with respect thereto. 
 10.3
Representations and Warranties. The Executive represents and warrants that he is not a party to or subject to any restrictive covenants, legal restrictions or other agreements in favor of any entity or person which could arguably, in any way,
preclude, inhibit, impair or limit the Executive’s ability to accept employment or perform his obligations under this Agreement, including, but not limited to, non-competition agreements, non-solicitation agreements or confidentiality
agreements. 
 10.4 Waiver and Amendments. This Agreement may be amended, modified, superseded, canceled, renewed or extended, and
the terms and conditions hereof may be waived, only by a written instrument signed by the Parties or, in the case of a waiver, by the party waiving compliance. No delay on the part of any party in exercising any right, power or privilege hereunder
shall operate as a waiver thereof, nor shall any waiver on the part of any right, power or privilege hereunder, nor any single or partial exercise of any right, power or privilege hereunder, preclude any other or further exercise thereof or the
exercise of any other right, power or privilege hereunder. 
 10.5 Governing Law. This Agreement shall be governed and construed in
accordance with the laws of the Commonwealth of Virginia, without regard to conflicts of laws principles, unless superseded by federal law. IN ADDITION, TO THE EXTENT PERMISSIBLE BY LAW, THE PARTIES AGREE TO WAIVE A TRIAL BY JURY. 

10.6 Assignability by the Company and the Executive. This Agreement, and the rights and obligations hereunder, may not be assigned by
the Company or the Executive without written consent signed by the other party; provided that the Company may assign its rights and obligations hereunder in connection with a Change in Control if the Company requires the assignee 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 if no assignment had occurred. 

10.7 Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original but all of which shall
constitute one and the same instrument. 
 10.8 Headings. The headings in this Agreement are for convenience of reference only and
shall not limit or otherwise affect the meaning of terms contained herein. 
 10.9 Severability. If any term, provision, covenant or
restriction of this Agreement, or any part thereof, is held by a court of competent jurisdiction of any foreign, federal, state, county or local government or any other governmental, regulatory or administrative agency or authority to be invalid,
void, unenforceable or against public policy for any reason, the remainder of the terms, provisions, covenants and restrictions of this Agreement shall remain in full force and effect and shall in no way be affected or impaired or invalidated. The
Executive acknowledges that the restrictive covenants contained in Section 6 are a condition of this Agreement and are reasonable and valid in temporal scope and in all other respects. 

10.10 Judicial Modification. If any court determines that any of the covenants in Section 6, or any part of any of them, is invalid or
unenforceable, the remainder of such 

  
 12 

 
covenants and parts thereof shall not thereby be affected and shall be given full effect, without regard to the invalid portion. If any court determines that any of such covenants, or any part
thereof, is invalid or unenforceable because of the geographic or temporal scope of such provision, such court shall reduce such scope to the minimum extent necessary to make such covenants valid and enforceable. 

10.11 Tax Withholding. The Company or other payor is authorized to withhold from any benefit provided or payment due hereunder, the
amount of withholding taxes due any federal, state or local authority in respect of such benefit or payment and to take such other action as may be necessary in the opinion of the Board to satisfy all obligations for the payment of such withholding
taxes. 
 10.12 Section 409A. The parties hereto intend that all payments and benefits to be made or provided to the Executive
will be paid or provided in compliance with all applicable requirements of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), so as not to be subject to the premature income recognition or adverse tax
provisions of Code 409A, and the provisions of this Agreement shall be construed and administered in accordance with and to implement such intent. In furtherance of the foregoing, the provisions set forth below shall apply notwithstanding any other
provision in this Agreement: 
 (a) All payments to be made to the Executive hereunder, to the extent they constitute a deferral of
compensation subject to the requirements of Code Section 409A (after taking into account all exclusions applicable to such payments under Code Section 409A), shall be made no later, and shall not be made any earlier, than at the time or
times specified herein or in any applicable plan for such payments to be made, except as otherwise permitted or required under Section 409A. 

(b) A termination of employment shall not be deemed to have occurred for purposes of any provision of this Agreement providing for the payment
of any amounts or benefits upon or following a termination of employment that are considered a deferral of compensation within the meaning of Code Section 409A unless such termination is also a “separation from service” within the
meaning of Code Section 409A and, for purposes of any such provision of this Agreement, references to a “termination,” “termination of employment” or like terms shall mean “separation from service.” 

(c) To the extent any payment or delivery otherwise required to be made to the Executive hereunder on account of the Executive’s
separation from service is properly treated as a deferral of compensation within the meaning of Code Section 409A after taking into account all exclusions applicable to such payment and delivery under Code Section 409A, and if Executive is a
“specified employee” under Code Section 409A at the time of the Executive’s separation from service, then such payment and delivery shall not be made prior to the first business day after the earlier of (i) the expiration of six (6)
months from the date of the Executive’s separation from service, or (ii) the date of Executive’s disability (as such term is defined in Code Section 409A) or death (such first business day, the “Delayed Payment Date”). On the
Delayed Payment Date, there shall be paid or delivered to the Executive or, if the Executive has died, to the Executive’s estate, in a single payment or delivery (as applicable) all entitlements so delayed, and in the case of cash payments, in
a single cash lump sum, an amount equal to aggregate amount of all payments delayed pursuant to the preceding sentence. 

  
 13 

 (d) In the case of any amounts payable to the Executive under this Agreement that may be treated
as payable in the form of “a series of installment payments,” as defined in Treas. Reg. §1.409A-2(b)(2)(iii), Executive’s right to receive such payments shall be treated as a right to receive a series of separate payments for
purposes of Treas. Reg. § 1.409A- 2(b)(2)(iii). 
 (e) With regard to any provision herein that provides for reimbursement of costs and
expenses or in-kind benefits, except as permitted by Code Section 409A, (i) the right to reimbursement or in-kind benefits shall not be subject to liquidation or exchange for another benefit, (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 without regard to expenses reimbursed under any arrangement covered by Code Section 105(b) solely because such expenses are subject to a limit related to the period the arrangement is in effect and (iii) such payments shall be
made as set forth in this Agreement, which shall in no event be made later than the last day of the Executive’s taxable year following the taxable year in which the expense occurred. 

10.13 280G Parachute Payments. Notwithstanding any other agreement between the Company and the Executive, in the event that any payment
or benefits provided to Executive (whether made or provided pursuant to this Agreement or otherwise) constitute “parachute payments” within the meaning of Section 280G of the Code (“Parachute Payments”) and would be subject
to the tax (the “Excise Tax”) imposed by Section 4999 of the Code, then the Executive will be entitled to receive either (A) the full amount of the Parachute Payments, or (B) the maximum amount that may be provided to
Executive without resulting in any portion of such Parachute Payments being subject to such Excise Tax, whichever of clauses (A) and (B), after taking into account applicable federal, state, and local taxes and the Excise Tax, results in the
receipt by the Executive, on an after-tax basis, of the greatest portion of the Parachute Payments. Any reduction of the Parachute Payments pursuant to the foregoing shall occur in the following order: (1) the Cash Incentive Bonus or any other
cash payment under any retention bonus agreement or similar agreement, (2) any cash severance payable by reference to the Executive’s base salary and annual bonus; (3) any other cash amount payable to the Executive; (4) any
benefit valued as a “parachute payment” (within the meaning of Section 280G of the Code); and (5) acceleration of vesting of any equity award. Any determination required under this Section 10.13 shall be made in writing by
the independent public accountants of the Company, whose determination shall be conclusive and binding for all purposes upon the Company and the Executive. For purposes of making any calculation required by this Section 10.13, such accountants
may make reasonable assumptions and approximations concerning applicable taxes and may rely on reasonable, good-faith interpretations concerning the application of Sections 280G and 4999 of the Code. 

[Signatures follow on next page.] 

  
 14 

 IN WITNESS WHEREOF, the Parties hereto, intending to be legally bound hereby, have executed this
Agreement as of the day and year first above mentioned. 
  

			
	EXECUTIVE
	
	/s/ Gordon Walsh
	  

	Name:	 	Gordon Walsh
	
	DYNCORP INTERNATIONAL LLC
		
	By:	 	/s/ Brett Ingersoll
		 	  

	Name:	 	Brett Ingersoll
	Title:	 	Chairman, Compensation Committee

  
 15 

 EXHIBIT A 

Exhibit A 

GENERAL RELEASE AGREEMENT 

This Release (the “Release”) is made as of this      day of
             20    , between DynCorp International LLC (the “Company”) and Gordon Walsh (the “Executive”). 

1. Release. In consideration of the severance payments and other post-employment benefit obligations of the Company set forth in the
employment agreement between the Company and the Executive, dated as of             , 20     (the Employment Agreement”), and other good and valuable consideration
to which the Executive agrees the Executive would not otherwise be entitled, the Executive hereby releases the Company, their affiliates and their respective present and former partners, directors, officers, principals, shareholders, members,
employees, agents, attorneys, successors and assigns (together, the “Released Parties”), from any and all claims, charges, manner of actions and causes of action, suits, debts, dues, accounts, bonds, covenants, contracts, agreements,
judgments, and demands whatsoever, which the Executive, or the Executive’s heirs, executors, administrators and assigns have, or may hereafter have against the Released Parties arising out of or by reason of any cause, matter or thing
whatsoever, whether known or unknown, fixed or contingent, liquidated or unliquidated, from the beginning of the world to the date hereof, including without limitation any and all matters relating to the Executive’s employment by the Company
and the termination thereof, the Employment Agreement, the Executive’s compensation, expenses, employee benefits, and all matters arising under any federal, state or local statute, rule or regulation or principle of contract law or common law
in the United States or any other jurisdiction, including, but not limited to, claims arising under the Age Discrimination in Employment Act, 29 U.S.C. § 621 et seq., Title VII of the Civil Rights Act of 1964, 42 U.S.C. §
2000 et seq., the Americans with Disabilities Act of 1990, 42 U.S.C. § 12101 et seq., the Employee Retirement Income Security Act of 1974, 29 U.S.C. § 1001 et seq., and the Family and Medical Leave
Act of 1993, 29 U.S.C. § 2601 et seq., all as amended. Notwithstanding the foregoing, nothing in this Release shall affect any vested employee benefits to which the Executive may be entitled under any existing
employee benefit plans of the Company, nor shall anything in this Release (i) affect the Executive’s rights to indemnification pursuant to the Employment Agreement or the Company s certificate of formation, bylaws or limited liability
company agreement or operating agreement or under any other agreement or policy or procedure, by-laws, policies and procedures or insurance policies, (ii) affect the Executive’s right to reimbursement of expenses under the Employment
Agreement or under the Company’s procedures for the reimbursement of expenses, or (iii) waive any claim that may arise after the date that the Executive signs this Release (including, without limitation, any such claims for breach of the
Employment Agreement). 
 2. No Pending Claims. Executive represents and warrants that the Executive does not presently have on file,
and further represents and warrants that the Executive will not hereafter file, any claims, grievances or complaints against the Released Parties in or with any court, or before any other tribunal or panel or arbitrators, public or private, based
upon any actions and causes of action, suits, debts, dues, accounts, bonds, covenants, contracts, agreements, judgments, charges, claims, and demands whatsoever against any Released Party relating to the Executives employment by the Company or its
affiliates, the Executive’s termination of employment thereof and the Employment Agreement, except to the extent any such claims arise after the date that the Executive signs this Release. 

  
 16 

 3. Non-Admission; Inadmissibility. The execution of this Release and the performance of
its terms (i) does not constitute an admission by the Company of any unlawful tortious action or any violation of any contract or any federal, state or local decisional law, statute, regulation or constitution, and the Company specifically
denies any such wrongdoing or violation, and (ii) shall in no way be construed to be an admission of liability by either the Executive or the Company with respect to any claims, disputes or controversies between the Executive and the Company.
This Release is entered into solely to resolve all matters related to or arising out of the Executive’s employment with and the cessation thereof, and its execution and implementation may not be used as evidence, and shall not be admissible in
a subsequent proceeding of any kind, except one alleging a breach of this Release. 
 4. Representations. The Executive represents
and warrants that the Executive fully understands the terms of this Release and that the Executive knowingly and voluntarily, of the Executive’s own free will without any duress, being fully informed and after due deliberation, accepts its
terms and signs the same as the Executive’s own free act. The Executive further represents and warrants that, except as set forth herein, no promises or inducements for this Release have been made, and the Executive is entering into this
Release without any reliance upon any statement or representation by any of the Released Parties or any other person concerning any fact material hereto. The Executive understands that as a result of entering into this Release, the Executive will
not have the right to assert that the Company unlawfully terminated the Executive’s employment or violated any rights in connection with such employment. 

5. Effective Date. 
 5.1
The Executive acknowledges that the Company has provided the Executive with at least twenty-one (21) days from the date upon which this Release is first delivered to the Executive within which to consider the terms and effect of this Release
and return an executed copy to the Company. The Executive agrees that any changes to this Release from the time it was first offered to the Executive, whether material or immaterial, do not restart the running of the twenty-one (21) day period.
If the Executive elects to execute this Release before the expiration of the twenty-one (21) day period, the Executive acknowledges that the Executive has chosen, of the Executive’s own free will without any duress, to waive the
Executive’s right to the full twenty-one (21) day period. 
 5.2 The Executive has seven (7) days following the date the
Executive executes this Release during which to revoke it, by notifying in writing              at
                    . This Release will not be effective until the eighth (8th) day following the Company’s receipt of the valid Release
signed by the Executive. 
 5.3 The Company hereby advises the Executive to consult with an attorney prior to signing this Release. 

6. Survival of Certain Provisions. The Executive acknowledges and agrees that Sections 6, 7 and 10 of the Employment Agreement remain
in full force and effect and survive the termination of the Executive’s employment with the Company. 

  
 17 

 7. Governing Law. This Release is subject to, and incorporates by reference,
Section 10.5 of the Employment Agreement. 
 IN WITNESS WHEREOF, the parties hereto, intending to be legally bound, have executed this
Release as of the day and year first written above. 
  

									
	DYNCORP INTERNATIONAL LLC	 		 		 	
			
	  
	 		 	  

	By:	 		 		 	Name:	 	Gordon Walsh
	Title:	 		 		 		 	

  
 18

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