Document:

Separation Agreement and General Release and Waiver

 Exhibit 10.1 
 Execution Copy 
 SEPARATION AGREEMENT AND GENERAL RELEASE AND WAIVER 
 This Separation Agreement and General Release and Waiver (this “Agreement”) is made as of January 22, 2008, among J. Crew Group,
Inc., a Delaware corporation (the “Parent”) and its operating subsidiary J. Crew Operating Corp. (the “Employer,” and together with the Parent, “J. Crew”) and Jeffrey A. Pfeifle (the
“Executive”). 
 WHEREAS, the parties wish to confirm the termination of the Executive’s employment with J. Crew and
set forth their agreement as to the manner in which the Executive’s employment with J. Crew will be closed out; 
 NOW, THEREFORE, in
consideration of the mutual covenants set forth herein and for other good and valuable consideration, receipt of which is hereby acknowledged, J. Crew and the Executive agree as follows: 
 1. Termination of Employment. The parties hereto hereby agree that the Executive’s employment with J. Crew will terminate as of
February 1, 2008 (the “Date of Termination”). The Executive hereby resigns, effective as of the Date of Termination, all positions, titles, duties, authorities and responsibilities with, arising out of or relating to his
employment with J. Crew and its affiliates, including but not limited to his position as President of J. Crew, and the Executive agrees to execute all additional documents and takes such further steps as may be required to effectuate such
resignation. 
 2. Certain Payments and Benefits. 
 (a) Within ten (10) days of the Executive’s Date of Termination, the Company shall pay to the Executive a lump sum amount equal to (i) his base salary through the Date of Termination and (ii) any
unreimbursed business expenses, ((i) and (ii) together, the “Accrued Obligations”). 
 (b) Conditioned upon the
Executive executing the release and waiver attached hereto as Appendix A (the “Release”) within 21 days of the date of this Agreement but not before the Date of Termination, having such executed Release notarized, and such Release
becoming effective, and the Executive’s continued compliance with the Release and Sections 3, 4, 5 and 6 hereof, J. Crew shall pay to the Executive: 
 (i) from the Date of Termination until January 31, 2010, the Executive’s base salary in effect as of the Date of Termination ($850,000), with such base salary payable in installments in accordance with J.
Crew’s normal payroll practices as may be in effect from time to time and less applicable withholding taxes. The parties hereto have determined that the payment of base salary during the six month period immediately following the Date of
Termination does not provide for a “deferral of compensation” within the meaning of IRS Treas. Reg. §1.409A-1(b)(9)(iii); and 

 (ii) on August 1, 2008 or as soon as practicable thereafter, a lump sum amount equal
to $603,200, which represents the Executive’s Annual Bonus under the Employment Agreement by and among Parent, the Employer and the Executive, dated as of January 24, 2003, (the “Employment Agreement”) and the J. Crew
Annual Incentive Plan with respect to the 2007 fiscal year (the amounts described in (i) and (ii) together, the “Severance Payments”). 
 The Executive acknowledges that the Accrued Obligations and the Severance Payments are in full and final settlement of any amounts due to the Executive under the Employment Agreement or otherwise, and the Executive
shall not be entitled to any other payment in the nature of severance, termination or other pay from J. Crew. 
 (c) The Executive shall be
entitled to any benefit to which the Executive may be entitled under the J. Crew tax qualified 401(k) plan, continuation of health insurance benefits, as provided above, to the extent provided in Section 4980B of the Internal Revenue Code of
1986 and Section 601 of the Employee Retirement Income Security Act of 1974, as amended (which provisions are commonly known as “COBRA”) and any other similar benefits required to be provided by law. In addition, Schedule
1 attached hereto reflects all of the Executive’s vested equity awards as of the Date of Termination and the Executive’s rights and obligations with respect to these awards shall be governed by the applicable plan documents and award
agreements (the “Plans”). Pursuant to the Plans, all vested options shall expire on May 1, 2008. 
 3.
Confidentiality; Non-Disclosure. 
 (a) The Executive hereby agrees that, following the Date of Termination, he will hold in strict
confidence any proprietary or Confidential Information related to J. Crew and its affiliates. For purposes of this Agreement, the term “Confidential Information” shall mean all information of J. Crew or any of its affiliates (in
whatever form) which is not generally known to the public, including without limitation any designs, samples, technical specifications, business plans, concepts and practices, marketing or other business strategies, inventions, methods of
distribution or customers’ or trade secrets, operations, processes, products, finances, principals, vendor and manufacturing information, suppliers, customers, potential customers, costs, prices and contractual relationships, or any information
in respect thereof. 
 (b) The Executive hereby agrees that, following the Date of Termination, he shall not take, without the prior written
consent of J. Crew, any drawing, blueprint, design, sample, specification or other document (in whatever form) of J. Crew or its affiliates, which is of a confidential nature relating to J. Crew or its affiliates, or, without limitation, relating to
its or their methods of distribution, or any description of any formulas or secret processes and will return any such information (in whatever form) then in his possession. 
 4. Non-Solicitation. For a period of one year following the Date of Termination, the Executive hereby agrees not to, directly or indirectly, for
his own account or for the account of any other person or entity, (i) solicit or hire or assist any other person or entity in soliciting or hiring any associate of J. Crew or any of its subsidiaries or affiliates to perform any services for any
entity (other than J. Crew or its subsidiaries or affiliates), attempt to induce any 

 
such associate to leave the employ of J. Crew or any affiliates of J. Crew, or otherwise interfere with or adversely modify such associate’s
relationship with J. Crew or any of its subsidiaries or affiliates, (ii) induce any associate of J. Crew who is a member of management to engage in any activity which the Executive is prohibited from engaging in under Sections 3 and 4 of this
Agreement and Section 9 of the Employment Agreement, or (iii) solicit or assist any other person or entity in soliciting or attempting to solicit any suppliers of J. Crew or any of its subsidiaries or affiliates to terminate or otherwise
adversely modify their relationship with J. Crew or any of its subsidiaries or affiliates, provided that nothing herein shall prohibit the Executive from recruiting his administrative assistant. For purposes of this Agreement, “associate”
shall mean any natural person any where in the world who is employed by or otherwise engaged to perform services for J. Crew or any of its subsidiaries or affiliates on the Date of Termination or during the one-year period preceding the Date of
Termination. 
 5. Intellectual Property. The Executive agrees that all sketches, drawings, samples, design samples, designs,
patterns, methods, processes, techniques, themes, layouts, mechanicals, trade secrets, copyrights, trademarks, patents, ideas, specifications and other material or work product (“Intellectual Property”) that were created, developed
or assembled during the Executive’s employment with the Company and that relate to the business of J. Crew and its affiliates during the Executive’s employment with J. Crew, whether or not by the Executive himself, are the permanent and
exclusive property of J. Crew. The Executive agrees that all Intellectual Property is deemed to be “work made for hire,” and that all rights to Intellectual Property are vested in J. Crew. 
 6. Assistance in Litigation. Following the Date of Termination, the Executive agrees that, in the event that he is served with legal process
or other request purporting to require the Executive to testify, plead, respond or defend and/or produce documents at a legal or governmental proceeding, threatened proceeding, investigation or inquiry involving J. Crew or any of its affiliates or
their respective officers, directors, members, executives or associates, the Executive will: (1) refuse to provide testimony or documents absent a subpoena, court order or similar process from a regulatory agency; (2) within three
(3) business days or as soon thereafter as practical, provide to the extent permitted by law, oral notification to J. Crew’s General Counsel of the Executive’s receipt of such process or request to testify or produce documents; and
(3) provide to J. Crew’s General Counsel by overnight delivery service a copy of all legal papers and documents served upon the Executive. The Executive further agrees that in the event he is served with such process, the Executive will
reasonably meet and confer with J. Crew’s designee(s) in advance of giving such testimony or information. The Executive also agrees to reasonably cooperate with J. Crew and any of its affiliates and their respective officers, directors,
members, executives or associates in connection with any existing, future or threatened litigation or governmental proceeding, investigation or inquiry involving the foregoing parties, whether administrative, civil or criminal in nature, in which
and to the extent J. Crew or any of its affiliates or their respective officers, directors, members, executives or associates deems his cooperation reasonably necessary. J. Crew agrees to reimburse the Executive for his reasonable out-of-pocket
expenses incurred in connection with the performance of his obligations under this Section 6. Notwithstanding the foregoing, the Executive’s obligations under this Section 6 shall not unreasonably interfere with the Executive’s
personal and professional obligations and responsibilities. 

 7. Injunctive Relief. It is impossible to measure in money the damages that will accrue to J. Crew
in the event that the Executive breaches any of the restrictive covenants provided in Sections 3, 4, and 5 hereof. In the event that the Executive breaches any such restrictive covenant, J. Crew shall be entitled to seek an injunction restraining
the Executive from violating such restrictive covenant. If J. Crew shall institute any action or proceeding to enforce any such restrictive covenant, the Executive hereby waives the claim or defense that J. Crew has an adequate remedy at law and
agrees not to assert in any such action or proceeding the claim or defense that J. Crew has an adequate remedy at law. The foregoing shall not prejudice J. Crew’s right to seek that the Executive account for and pay over to J. Crew the
compensation, profits, monies, accruals or other benefits derived or received by the Executive, directly or indirectly, as a result of any transaction constituting a breach of any of the restrictive covenants provided in Sections 3, 4, and 5 hereof.

 8. Certain Forfeitures in Event of Breach. The Executive acknowledges and agrees that, notwithstanding any other provision of this
Agreement, in the event the Executive materially breaches any of his obligations under the Release or pursuant to Sections 3, 4, 5 and 6 hereof, the Executive will forfeit his right to receive the Severance Payments to the extent not theretofore
paid to him as of the date of such breach and, to the extent already made as of the time of breach, the Executive agrees that he will reimburse J. Crew immediately for the amount of such Severance Payments. 
 9. No Admission. This Agreement does not constitute an admission of liability or wrongdoing of any kind by J. Crew or its affiliates. 

10. Heirs and Assigns. The terms of this Agreement shall be binding on the parties hereto and their respective successors and assigns.

 11. General Provisions 
 (a) Integration. This Agreement constitutes the entire understanding of J. Crew and the Executive with respect to the subject matter hereof and supersedes all prior understandings, written or oral. The terms of this Agreement may be
changed, modified or discharged only by an instrument in writing signed by the parties hereto. A failure of J. Crew or the Executive to insist on strict compliance with any provision of this Agreement shall not be deemed a waiver of such provision
or any other provision hereof. In the event that any provision of this Agreement is determined to be so broad as to be unenforceable, such provision shall be interpreted to be only so broad as is enforceable. 
 (b) Choice of Law. This Agreement shall be construed, enforced and interpreted in accordance with and governed by the laws of the State of New
York, without regard to its choice of law provisions. 
 (c) Construction of Agreement. The parties hereto acknowledge and agree that
each party has reviewed and negotiated the terms and provisions of this Agreement and has had the opportunity to contribute to its revision. Accordingly, the rule of construction to the effect that ambiguities are resolved against the drafting party
shall not be employed in the interpretation of this Agreement. Rather, the terms of this Agreement shall be construed fairly as to both parties hereto and not in favor or against either party. 

 (d) Counterparts. This Agreement may be executed in any number of counterparts and by different
parties on separate counterparts, each of which counterpart, when so executed and delivered, shall be deemed to be an original and all of which counterparts, taken together, shall constitute but one and the same Agreement. 
 (e) Notice. Any notice or other communication required or permitted under this Agreement shall be effective only if it is in writing and shall be
deemed to be given when delivered personally or four days after it is mailed by registered or certified mail, postage prepaid, return receipt requested or one day after it is sent by a reputable overnight courier service and, in each case, addressed
as follows (or if it is sent through any other method agreed upon by the parties): 
 If to J. Crew: 
 J. Crew Group, Inc. 
 2 Penn Plaza 

26th Floor 
 New York, New York 10121 
 Attention: General Counsel 
 with a copy to: 
 Robert J. Raymond, Esq. 
 Cleary, Gottlieb,
Steen & Hamilton LLP 
 One Liberty Plaza 
 New York, NY 10006 
 and a copy to: 
 Lanny A. Oppenheim, Esq. 
 Loeb &
Loeb, LLP 
 345 Park Avenue 
 New
York, NY 10154 
 If to the Executive, to the address on record with J. Crew; or, for either party, to such other address as any party hereto may designate
by notice to the others, and shall be deemed to have been given upon receipt. 
 12. Knowing and Voluntary Waiver. The Executive, by
the Executive’s free and voluntary act of signing below and signing Appendix A hereto, (i) acknowledges that he has been given a period of twenty-one (21) days to consider whether to agree to the terms contained herein (including
Appendix A) and agrees to all of the terms of this Agreement including Appendix A and intends to be legally bound thereby. Furthermore, the Executive acknowledges that Severance Payments will be delayed until this Agreement and the Release attached
hereto as Appendix A becomes effective, enforceable and irrevocable. 

 This Agreement and the Release attached hereto as Appendix A will become effective, enforceable and
irrevocable on the eighth day after the date on which Appendix A is executed by the Executive (the “Effective Date”). During the seven-day period prior to the Effective Date, the Executive may revoke his agreement to accept the
terms hereof by indicating in writing to the Executive Vice-President, Human Resources of the Company his intention to revoke. If the Executive exercises his right to revoke hereunder, he shall forfeit his right to receive any of the payments or
benefits provided for herein, and to the extent such payments or benefits have already been made, the Executive agrees that he will immediately reimburse the Company for the amounts of such payments and benefits. 
 [Remainder of page intentionally left blank] 

 IN WITNESS the Employer and the Parent have caused this Agreement to be signed by their duly authorized
representatives and the Executive has signed this Agreement as of the day and year first above written. 
  

	
	J. CREW GROUP, INC.
	
	 /s/ Lynda Markoe

	Name: Lynda Markoe
	Title: EVP Human Resources
	
	J. CREW OPERATING CORP.
	
	 /s/ Lynda Markoe

	Name: Lynda Markoe
	Title: EVP Human Resources
	
	 /s/ Jeffrey A. Pfeifle

	Jeffrey A. Pfeifle

 Schedule 1 
  

				
	 Number of Option Shares Vested as of the Date of Termination
	  	Exercise Price
	(inclusive of the 2/1/08 vesting of the Initial Options and the Premium Options, as defined in the Employment Agreement)	  	 
	 81,001
	  	$	3.53
		
	 135,004
	  	$	7.75
		
	 216,006
	  	$	12.92

 Appendix A 
 GENERAL RELEASE AND WAIVER OF CLAIMS 
 The Executive hereby releases, remises and acquits the
Employer, the Parent and all of their respective affiliates, and their respective officers, directors, shareholders, members, agents, Executives, consultants, independent contractors, attorneys, advisers, successors and assigns, jointly and
severally, from any and all claims, known or unknown, which the Executive or the Executive’s heirs, successors or assigns have or may have against any of such parties arising on or prior to the date this General Release and Waiver of Claims
(“General Release”) is executed by the Executive and any and all liability which any of such parties may have to the Executive, whether denominated claims, demands, causes of action, obligations, damages or liabilities arising from
any and all bases, however, denominated, including but not limited to, the Age Discrimination in Employment Act, the Americans with Disabilities Act of 1990, the Family and Medical Leave Act of 1993, Title VII of the United States Civil Rights Act
of 1964, 42 U.S.C. § 1981, the New York Human Rights Law, N.Y. Exec. Law Article 15 et seq., New York Executive Law § 296, § 8-107 of the Administrative Code and Charter of New York City, or any other federal, state or local law and
any workers’ compensation or disability claims under any such laws or claims under any contract (including without limitation the Employment Agreement). This release relates to any and all claims, including without limitation claims arising
from and during the Executive’s employment relationship with the Employer, the Parent and their respective affiliates or as a result of the termination of such relationship. The Executive further agrees that the Executive will not file or
permit to be filed on the Executive’s behalf any such claim. Notwithstanding the preceding sentence or any other provision of this Agreement, this release is not intended to interfere with the Executive’s right to file a charge with the
Equal Employment Opportunity Commission (the “EEOC”) in connection with any claim he believes he may have against the Employer, the Parent or their respective affiliates. However, by executing this General Release, the Executive
hereby waives the right to recover in any proceeding the Executive may bring before the EEOC or any state human rights commission or in any proceeding brought by the EEOC or any state human rights commission on the Executive’s behalf. This
General Release is for any relief, no matter how denominated, including, but not limited to, injunctive relief, wages, back pay, front pay, compensatory damages, or punitive damages. This General Release shall not apply to any obligation of the
Employer, the Parent or their respective affiliates pursuant to the Agreement to which this General Release is appended or any rights in the nature of indemnification (including without limitation pursuant to J. Crew’s directors’ and
officer’s liability insurance policy) which the Employer may have with respect to claims against the Executive relating to or arising out of his employment with the Employer, the Parent or their respective affiliates. 
  

					
	 2-21-08
	 		 	 /s/ Jeffrey A. Pfeifle

	Date	 		 	Jeffrey A. Pfeifle

 Acknowledgment 
  

			
	 STATE OF Florida)
	  	
		  	ss:
	 COUNTY OF Monroe)
	  	

 On the 21 day of February, 08, before me personally came
Jeffrey A. Pfeifle who, being by me duly sworn, did depose and say that he resides at 408 88th St. NYC NY; and did acknowledge and represent that he
has had an opportunity to consult with attorneys and other advisers of his choosing regarding the Separation Agreement and General Release and Waiver attached hereto, that he has reviewed all of the terms of the Separation Agreement and General
Release and Waiver and that he fully understands all of its provisions, including, without limitation, the general release and waiver set forth therein. 
  

	
	 /s/ Kelle Williams

	Notary Public

 Date: 02.21.08Management Retention Agreement between Epicor and Thomas Kelly

 Exhibit 10.1 
 EPICOR SOFTWARE CORPORATION 
 MANAGEMENT RETENTION AGREEMENT 
 This Management Retention Agreement (the “Agreement”) is made and entered into effective as of February 19, 2008 (the “Effective
Date”), by and between Thomas F. Kelly (the “Executive”) and Epicor Software Corporation (the “Company”). Certain capitalized terms used in this Agreement are defined herein. 
 RECITALS 
 WHEREAS, Executive has
agreed to accept employment with the Company as its Chief Executive Officer (“CEO”); and 
 WHEREAS, Executive and Company wish to
commemorate the terms and conditions of Executive’s employment as Company CEO in a written agreement; 
 NOW, THEREFORE, in
consideration of the mutual covenants and promises set forth herein and for other good and valuable consideration, the receipt of and sufficiency of which are hereby acknowledged, Company and the Executive agree as follows: 
 1. Definitions. The following terms referred to in this Agreement shall have the following meanings: 
 (a) “Cause” means (i) any act of personal dishonesty taken by Executive in connection with his responsibilities as
an employee which is intended to result in substantial personal enrichment of Executive; (ii) Executive’s conviction of a felony which the Board reasonably believes has had or will have a material detrimental effect on the Company’s
reputation or business; (iii) a willful act by Executive which constitutes gross misconduct and is materially injurious to the Company; or (iv) continued willful violations by Executive of Executive’s obligations to the Company after
there has been delivered to Executive a written demand for performance from the Company which describes the basis for the Company's belief that Executive has not substantially performed his duties and after Executive has been given at least 10
business days in which to cure the circumstances identified in such written demand. 
 (b) “Change of
Control” means the occurrence of any of the following (i) the sale, lease, conveyance or other disposition of all or substantially all of the Company’s assets as an entirety or substantially as an entirety to any person, entity or
group of persons acting in concert, (ii) any transaction or series of transactions that results in, or that is in connection with, any person, entity or group acting in concert (other than existing affiliates of the Company), acquiring
“beneficial ownership” (as defined in Rule 13d-3 under the Securities Exchange Act of 1934), directly or indirectly, of such percentage of the aggregate voting power of all classes of voting equity stock of the Company as shall exceed
fifty percent (50%) of such aggregate voting power, (iii) a merger or consolidation in which the Company is not the surviving entity, except for a transaction, the principal 

  

 1 

 
purpose of which is to change the state in which the Company is incorporated; or (iv) any reverse merger in which the Company is a surviving entity but
in which securities possessing more than fifty percent (50%) of the total combined voting power of the Company’s outstanding securities are transferred to a person or persons different from the persons holding those securities immediately
prior to such reverse merger; or (v) a liquidation of the Company. 
 (c) “Disability” means
Executive’s inability due to any physical or mental condition to perform a substantial portion of his employment duties to the Company for twenty-four (24) or more consecutive weeks. 
 (d) “Involuntary Termination” means, without Executive’s express written consent, (i) a significant reduction
of Executive’s duties, position or responsibilities relative to Executive’s CEO duties, position or responsibilities in effect immediately prior to such reduction, or the removal of Executive from such position, duties and
responsibilities, unless Executive is provided with comparable duties, position and responsibilities; (ii) a reduction by the Company of Executive’s CEO base salary as in effect immediately prior to such reduction unless such reduction is
made pursuant to and proportionately with any Company policy applicable to similarly-situated Company executives; (iii) the relocation of Executive to a facility or a location more than one hundred (100) miles from the Company’s
current Irvine, California location; (iv) any purported termination of Executive’s CEO title by the Company which is not effected for Cause or for which the grounds relied upon are not valid; (v) Executive’s death or Disability;
or (vi) the failure of the Company to obtain the assumption of this Agreement by any successors contemplated in Section 14 below. 
 2. Term of Agreement. Executive hereby accepts employment with the Company as Company CEO for a period beginning on the Effective Date and continuing thereafter until Executive’s employment as Company CEO is terminated for any
reason, including through Executive’s voluntary termination, Involuntary Termination, or termination for Cause, subject to the terms and conditions set forth herein (the “Employment Term”). As specifically described in this Agreement,
the parties’ obligations under specific sections herein continue in certain respects following the Employment Term. 
 3. At-Will
Employment. The Company and Executive acknowledge that Executive’s employment is and shall continue to be at-will, as defined under applicable law. If Executive’s employment terminates for any reason, Executive shall not be entitled to
any payments, benefits, damages, awards or compensation other than as provided by this Agreement, or as may otherwise be established under the Company’s then existing employee benefit plans or policies at the time of termination. 
 4. Base Salary. During the Employment Term, the Company will pay Executive a salary at an annualized rate of $500,000 as compensation for his
services (the “Base Salary”). The Base Salary will be paid periodically in accordance with the Company’s normal payroll practices and be subject to the usual, required withholdings. Any increases to the Base Salary during the
Employment Term may only be authorized by and will be subject to the prior written approval of the Company’s Board of Directors. 
  

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 5. Annual Incentive. Executive will be eligible to receive annual cash bonus payments under the
Company’s cash bonus plan for key employees beginning on the Effective Date. The bonus will be paid on a fiscal year basis based on a performance plan agreed to between the Executive and the Board of Directors of the Company. The initial cash
bonus plan to Executive to be entered into following the Executive’s commencement as Company CEO shall provide for an on target bonus amount equal to 60% of Executive’s Base Salary, or $300,000 (the “Initial Target Bonus”).
Payment of 50% of the Initial Target Bonus, or $150,000, will be guaranteed for the 2008 fiscal year and will be paid to Executive upon commencing employment as Company CEO, subject to the usual and required withholdings. The remaining 50% of the
Initial Target Bonus will be subject to the terms and conditions of the initial cash bonus plan to Executive to be entered into following the Executive’s commencement as Company CEO. 
 6. Restricted Stock Grant. Pursuant to the terms of the Agreement, Executive shall be granted a total of two hundred twenty-eight thousand
(228,000) shares of restricted Company common stock, allocated equally (114,000) to each of the 2008 and 2009 fiscal years (the “Restricted Stock Grant”). The Restricted Stock Grant shall provide that the restrictions on the
stock shall lift based on achievement of applicable Company performance goals during 2008 and 2009 as determined in accordance with the terms of the Company’s Performance Based Restricted Stock Program (the “Program”) approved by the
Company’s Compensation Committee and subject to the Executive’s continued service to the Company through the 2008 and 2009 performance periods. Notwithstanding the foregoing, for the 2008 fiscal year, all Company performance goals
applicable to the 114,000 shares of restricted stock allocated to such fiscal year will be deemed achieved at 100% target, subject to the Executive’s continued service to the Company through the 2008 performance period. The Restricted Stock
Grant is also subject to the terms, definitions and provisions of the Company’s applicable stock incentive plan, as may be amended from time to time (the “Plan”) and the restricted stock agreement by and between Executive and the
Company (the “Restricted Stock Agreement”), both of which documents are incorporated herein by reference. 
 7. Relocation
Expenses. For the six (6) month period following the execution of this Agreement, the Company will reimburse Executive for the actual reasonable rental expense incurred by Executive in renting a residence in Orange County, California while
Executive searches for permanent housing for himself and his family. During the same six (6) month period, Company shall reimburse Executive for the actual reasonable commercial air travel expense incurred by Executive and his spouse in
traveling back and forth to Executive’s current Northern California home. Additionally, the Company will reimburse Executive for his actual reasonable expenses incurred in moving and relocating his family and household to Southern California.
Company will not pay or reimburse Executive for any costs or expenses associated with Executive’s (i) sale of his current residence, or (ii) purchase of a residence in Orange County. Executive agrees that he will submit all such
reimbursable expenses to the Company with appropriate documentation as such expenses are incurred and the Company shall reimburse Executive promptly thereafter in accordance with the Company’s expense reimbursement policy. Notwithstanding the
prior sentence, Executive agrees that he shall have submitted all such expenses to Company by no later than December 1, 2008 so that Company will be in a position to reimburse Executive for all such expenses by no later than December 31,
2008. 
  

 3 

 8. Country Club Membership. The Company will assist Executive in acquiring a local to Orange
County, Country Club/Golf Membership by reimbursing Executive for actual Membership initiation fees incurred by Executive in joining such Country Club up to a maximum reimbursement of $50,000. Executive shall be responsible for payment of any
monthly dues or fees associated with such membership. In the event that Executive should voluntarily terminate his position as Company CEO before the end of the three year period following the Effective Date, Executive shall be required to pay back
to Company the expense reimbursement paid by Company to Executive upon Executive’s sale of his membership in such Club. 
 9.
Other. Upon Commencement as Company CEO, Executive shall be eligible to participate in the Company's health plan, including the Exec-U-Care plan. After meeting eligibility requirements, Executive will be able to participate in various company
benefit programs including the Company's 401(k) savings program, Employee Stock Purchase Plan, Section 125 Reimbursement Account, Deferred Compensation Program and the Confidential Employee Assistance Program (EAP). 
 10. Severance Benefits Upon Involuntary Termination. 
 Section 10(i) below governs severance benefits to be received by Executive upon the occurrence of an Involuntary Termination at any time during the term of this Agreement which Involuntary Termination does not
occur within twelve months following a Change of Control. Section 10(ii) below governs severance benefits to be received by Executive upon the occurrence of an Involuntary Termination at any time during the term of this Agreement which
Involuntary Termination does occur within twelve months following a Change of Control. The payment of Severance benefits to Executive under this Section 10 is subject to Section 14 herein. 
 (i) Upon the occurrence of an Involuntary Termination at any time during the term of this Agreement which Involuntary Termination does not occur within
twelve months following a Change of Control, Executive shall be entitled to only the following benefits: 
 (a) An amount
equal to twelve (12) months of Executive’s Base Salary as in effect as of the date of the Involuntary Termination, to be paid periodically in accordance with the Company’s normal payroll policies; 
 (b) An amount equal to 100% of the Executive’s target annual bonus as calculated from the Executive’s bonus plan in effect at
the time of the Executive’s Involuntary Termination. 
 (c) For the twelve (12) month period following such
Involuntary Termination, Executive will have the right to continue his group health insurance (medical, dental, and vision) under COBRA and the Company will reimburse Executive or pay directly for the actual COBRA premiums for which Executive is
responsible during such 12 month period. 
  

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 (ii) Upon the occurrence of an Involuntary Termination at any time during the term of this Agreement and
which Involuntary Termination occurs within twelve (12) months following a Change of Control, Executive shall be entitled to only the following benefits: 
 (a) An amount equal to eighteen (18) months of Executive’s Base Salary as in effect as of the date of the Involuntary
Termination, to be paid periodically in accordance with the Company’s normal payroll policies; 
 (b) An amount equal to
150% of the Executive’s target annual bonus as calculated from the Executive’s bonus plan in effect at the time of the Executive’s Involuntary Termination; and 
 (a) For the eighteen (18) month period following such Involuntary Termination, Executive will have the right to continue his group
health insurance (medical, dental, and vision) under COBRA and the Company will reimburse Executive or pay directly for the actual COBRA premiums for which Executive is responsible during such 18 month period. 
 11. Other Termination. If the Executive's employment as CEO with the Company terminates for any reason other than as a result of an Involuntary
Termination (whether or not within 12 months following a Change of Control), then subject to the requirements of applicable law and Section 12 below, the Executive shall not be entitled to receive any of the severance or other benefits
hereunder, but Executive may still be eligible for those benefits (if any) as may then be established under the Company's then existing severance and benefits plans and policies at the time of such termination. 
 12. Accrued Wages and Vacation; Expenses. Without regard to the reason for, or the timing of Executive's termination of employment: (i) the
Company shall pay Executive any unpaid base salary due for periods prior to any termination of employment; (ii) the Company shall pay Executive all of his accrued and unused vacation, if any, through any termination of employment, as well as
all earned but as-yet unpaid bonuses; and (iii) following submission of proper expense reports by Executive, the Company shall reimburse Executive for all expenses reasonably and necessarily incurred by Executive in connection with the business
of the Company prior to any termination of employment. Executive acknowledges that as mandated by established Company policy, the Company CEO position does not accrue vacation/PTO time. These payments shall be made promptly upon termination and
within the period of time mandated by law. 
 13. Golden Parachute Excise Tax Gross-Up. In the event that any of the severance and
other benefits provided for in this Agreement constitute "parachute payments" within the meaning of Section 280G of the Internal Revenue Code of 1986, as amended (the "Code") and will be subject to the excise tax imposed by Section 4999 of
the Code, then Executive shall receive (i) a payment from the Company sufficient to pay such excise tax, and (ii) an additional payment from the Company sufficient to pay the excise tax and federal and state income taxes arising from the
payments made by the Company to Executive pursuant to this sentence. Unless the Company and Executive otherwise agree in writing, the determination of Executive's excise tax liability and the amount required to be paid under this Section shall be
made in writing by the Company’s independent accountants (the “Auditors”). In the event that the excise tax incurred by Executive is determined by the Internal Revenue Service to be greater or lesser than the amount so determined by
the Auditors, the Company and Executive agree to promptly make such additional payment, including interest and any tax penalties, to the other party as the Auditors reasonably determine is appropriate to ensure that the net economic effect to
Executive under this Section, on an after-tax basis, is as if the Code Section 4999 

  

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excise tax did not apply to Executive. For purposes of making the calculations required by this Section, the Auditors may make reasonable assumptions and
approximations concerning applicable taxes and may rely on interpretations of the Code for which there is a “substantial authority” tax reporting position. The Company and Executive shall furnish to the Auditors such information and
documents as the Auditors may reasonably request in order to make a determination under this Section. The Company shall bear all costs the Auditors may reasonably incur in connection with any calculations contemplated by this Section. 
 14. Conditions to Receipt of Severance. 
 (a) Separation Agreement and Release of Claims. The receipt of any severance pursuant to Section 10 will be subject to Executive signing and not revoking a separation agreement and release of claims in a
form reasonably acceptable to the Company. No severance will be paid or provided until the separation agreement and release agreement becomes effective and non-revocable. 
 (b) Nondisparagement. During the Employment Term and while the Executive is receiving the benefits under Section 10
(“Severance Period”), Executive will not knowingly disparage, criticize, or otherwise make any derogatory statements regarding the Company, its directors, or its officers. The Company will instruct its officers and directors to not
knowingly disparage, criticize, or otherwise make any derogatory statements regarding the Executive during the Employment Term and Severance Period. Notwithstanding the foregoing, nothing contained in this agreement will be deemed to restrict the
Executive, the Company or any of the Company’s current or former officers and/or directors from providing information to any governmental or regulatory agency (or in any way limit the content of any such information) to the extent they are
requested or required to provide such information pursuant to applicable law or regulation. 
 (c) Other Requirements.
Executive’s receipt of continued severance payments will be subject to Executive continuing to comply with the terms of the Company’s Confidential/Proprietary Information Agreement and the provisions of this Section 14. 
 15. Code Section 409A. 
 (a) Six-Month Delay. Notwithstanding anything to the contrary in this Agreement, if Executive is a “specified employee” within the meaning of Section 409A of the Internal Revenue Code of 1986, as amended, and the final
regulations and any guidance promulgated thereunder (“Section 409A”) at the time of Executive’s termination of employment (other than due to death), then the severance benefits payable to Executive under this Agreement, if any, and
any other severance payments or separation benefits that may be considered deferred compensation under Section 409A (together, the “Deferred Compensation Separation Benefits”) otherwise due to Executive on or within the six
(6) month period following Executive’s termination of employment will accrue during such six (6) month period and will become payable in a lump sum payment (less applicable withholding taxes) on the date six (6) months and one
(1) day following the date of Executive’s termination of employment. All subsequent payments, if any, will be payable in accordance with the payment schedule applicable to each payment or benefit. Notwithstanding anything herein to the
contrary, if Executive dies following his or her termination of employment but 

  

 6 

 
prior to the six (6) month anniversary of his or her date of termination, then any payments delayed in accordance with this paragraph will be payable in
a lump sum (less applicable withholding taxes) to Executive’s estate as soon as administratively practicable after the date of Executive’s death and all other Deferred Compensation Separation Benefits will be payable in accordance with the
payment schedule applicable to each payment or benefit. 
 (b) Amendments to this Agreement to Comply with
Section 409A. This provision is intended to comply with the requirements of Section 409A so that none of the severance payments and benefits to be provided hereunder will be subject to the additional tax imposed under
Section 409A, and any ambiguities herein will be interpreted to so comply. The Company and Executive agree to work together in good faith to consider amendments to this Agreement and to take such reasonable actions which are necessary,
appropriate or desirable to avoid imposition of any additional tax or income recognition prior to actual payment to the Employee under Section 409A. 
 16. Successors. 
 (a) Company’s Successors. Any successor to the Company
(whether direct or indirect and whether by purchase, lease, merger, consolidation, liquidation or otherwise) to all or substantially all of the Company’s business and/or assets shall assume the Company’s obligations under this Agreement
and agree expressly to perform the Company’s obligations under this Agreement in the same manner and to the same extent as the Company would be required to perform such obligations in the absence of a succession. For all purposes under this
Agreement, the term “Company” shall include any successor to the Company's business and/or assets which executes and delivers the assumption agreement described in this subsection or which becomes bound by the terms of this Agreement by
operation of law. 
 (b) Executive’s Successors. Without the written consent of the Company, Executive shall not
assign or transfer this Agreement or any right or obligation under this Agreement to any other person or entity. Notwithstanding the foregoing, the terms of this Agreement and all rights of Executive hereunder shall inure to the benefit of, and be
enforceable by, Executive’s personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees. 
 17. Notices. 
 (a) General. Notices and all other communications contemplated
by this Agreement shall be in writing and shall be deemed to have been duly given when personally delivered or when mailed by U.S. registered or certified mail, return receipt requested and postage prepaid. In the case of Executive, mailed notices
shall be addressed to him at the home address that he most recently communicated to the Company in writing. In the case of the Company, mailed notices shall be addressed to its corporate headquarters, and all notices shall be directed to the
attention of its Secretary. 
 (b) Notice of Termination. Any termination by the Company for Cause or by Executive as a
result of a voluntary resignation or an Involuntary Termination shall be communicated by a notice of termination to the other party hereto given in accordance with this 

  

 7 

 
Section. Such notice shall indicate the specific termination provision in this Agreement relied upon, shall set forth in reasonable detail the facts and
circumstances claimed to provide a basis for termination under the provision so indicated, and shall specify the termination date (which shall be not more than 30 days after the giving of such notice). The failure by Executive to include in the
notice any fact or circumstance which contributes to a showing of Involuntary Termination shall not waive any right of Executive hereunder or preclude Executive from asserting such fact or circumstance in enforcing his rights hereunder. 

18. Arbitration. 
 (a) Any dispute or controversy arising out of, relating to, or in connection with this Agreement, or the interpretation, validity, construction, performance, breach, or termination thereof, shall be settled by binding arbitration to be held
in Orange County, California in accordance with the National Rules for the Resolution of Employment Disputes then in effect of the American Arbitration Association (the “Rules”). The arbitrator may grant injunctions or other relief in such
dispute or controversy. The decision of the arbitrator shall be final, conclusive and binding on the parties to the arbitration. Judgment may be entered on the arbitrator's decision in any court having jurisdiction. 
 (b) The arbitrator(s) shall apply California law to the merits of any dispute or claim, without reference to conflicts of law rules. The
arbitration proceedings shall be governed by federal arbitration law and by the Rules, without reference to state arbitration law. Executive hereby consents to the personal jurisdiction of the state and federal courts located in California for any
action or proceeding arising from or relating to this Agreement or relating to any arbitration in which the parties are participants. 
 (c) Executive understands that nothing in this Section modifies Executive’s at-will employment status. Either Executive or the Company can terminate the employment relationship at any time, with or without Cause.

 (d) EXECUTIVE HAS READ AND UNDERSTANDS THIS SECTION, WHICH DISCUSSES ARBITRATION. EXECUTIVE UNDERSTANDS THAT SUBMITTING ANY
CLAIMS ARISING OUT OF, RELATING TO, OR IN CONNECTION WITH THIS AGREEMENT, OR THE INTERPRETATION, VALIDITY, CONSTRUCTION, PERFORMANCE, BREACH OR TERMINATION THEREOF TO BINDING ARBITRATION, CONSTITUTES A WAIVER OF EXECUTIVE'S RIGHT TO A JURY TRIAL AND
RELATES TO THE RESOLUTION OF ALL DISPUTES RELATING TO ALL ASPECTS OF THE EMPLOYER/EXECUTIVE RELATIONSHIP, INCLUDING BUT NOT LIMITED TO, THE FOLLOWING CLAIMS: 
 (i) ANY AND ALL CLAIMS FOR WRONGFUL DISCHARGE OF EMPLOYMENT; BREACH OF CONTRACT, BOTH EXPRESS AND IMPLIED; BREACH OF THE COVENANT OF GOOD
FAITH AND FAIR DEALING, BOTH EXPRESS AND IMPLIED; NEGLIGENT OR INTENTIONAL INFLICTION OF EMOTIONAL DISTRESS; NEGLIGENT OR 

  

 8 

 
INTENTIONAL MISREPRESENTATION; NEGLIGENT OR INTENTIONAL INTERFERENCE WITH CONTRACT OR PROSPECTIVE ECONOMIC ADVANTAGE; AND DEFAMATION. 
 (ii) ANY AND ALL CLAIMS FOR VIOLATION OF ANY FEDERAL STATE OR MUNICIPAL STATUTE, INCLUDING, BUT NOT LIMITED TO, TITLE VII OF THE CIVIL
RIGHTS ACT OF 1964, THE CIVIL RIGHTS ACT OF 1991, THE AGE DISCRIMINATION IN EMPLOYMENT ACT OF 1967, THE AMERICANS WITH DISABILITIES ACT OF 1990, THE FAIR LABOR STANDARDS ACT, THE CALIFORNIA FAIR EMPLOYMENT AND HOUSING ACT, AND LABOR CODE SECTION
201, et seq; 
 (iii) ANY AND ALL CLAIMS ARISING OUT OF ANY OTHER LAWS AND REGULATIONS RELATING TO EMPLOYMENT OR
EMPLOYMENT DISCRIMINATION. 
 19. Miscellaneous Provisions. 
 (a) No Duty to Mitigate. Executive shall not be required to mitigate the amount of any payment contemplated by this Agreement, nor
shall any such payment be reduced by earnings that Executive may receive from any other source. 
 (b) Waiver. No
provision of this Agreement may be modified, waived or discharged unless the modification, waiver or discharge is agreed to in writing and signed by Executive and by an authorized officer of the Company (other than Executive). No waiver by either
party of any breach of, or of compliance with, any condition or provision of this Agreement by the other party shall be considered a waiver of any other condition or provision or of the same condition or provision at another time. 
 (c) Integration. This Agreement and any outstanding stock option agreements and restricted stock purchase agreements referenced
herein represent the entire agreement and understanding between the parties as to the subject matter herein and supersede all prior or contemporaneous agreements, whether written or oral, with respect to this Agreement, including but not limited to
any other offer letter and any stock option agreement, restricted stock purchase agreement or severance agreement. Executive agrees and acknowledges that in the event of any conflict, redundancy or discrepancy between the terms and conditions of
this Agreement and any other agreement regarding the subject matter herein, the terms and conditions of this Agreement shall govern. 
 (d) Choice of Law. The validity, interpretation, construction and performance of this Agreement shall be governed by the internal substantive laws, but not the conflicts of law rules, of the State of California. 
 (e) Severability. The invalidity or unenforceability of any provision or provisions of this Agreement shall not affect the validity
or enforceability of any other provision hereof, which shall remain in full force and effect. 
  

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 (f) Employment Taxes. All payments made pursuant to this Agreement shall be
subject to withholding of applicable income and employment taxes. 
 (g) Counterparts. This Agreement may be executed
in counterparts, each of which shall be deemed an original, but all of which together will constitute one and the same instrument. 
 IN
WITNESS WHEREOF, each of the parties has executed this Agreement, in the case of the Company by its duly authorized officer, as of the day and year first above written. 
  

									
	COMPANY:	 		 	EPICOR SOFTWARE CORPORATION
					
		 		 		 	By:	 	/s/ L. George Klauss
		 		 		 	Title:	 	Chairman
				
	EXECUTIVE:	 		 		 	/s/ Thomas F. Kelly
		 		 		 	Signature
				
		 		 		 	Thomas F. Kelly
		 		 		 	Printed Name

  

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