Document:

Amendment No. 5 to Strategic Alliance Agreement

 Exhibit 10.1 
 *** Text Omitted and Filed Separately 
 Confidential Treatment Requested 

Under 17 C.F.R. §§ 200.80(b)(4) and 17 C.F.R. 24b-2 
 AMENDMENT NO.5 TO STRATEGIC ALLIANCE AGREEMENT 
 This AMENDMENT NO.5 (this
“Amendment”) is made and entered into as of this 2nd day of April, 2011 by and among Quest Diagnostics Incorporated, a Delaware corporation (“Quest Diagnostics”), Quest Diagnostics India Private Limited, a wholly
owned subsidiary of Quest Diagnostics that is organized as a private limited company under the laws of India (“Quest Diagnostics India”), and Vermillion, Inc., a Delaware corporation (formerly known as Ciphergen Biosystems, Inc.,
“Vermillion”), with respect to that certain Strategic Alliance Agreement, dated as of July 22, 2005 between Quest Diagnostics and Vermillion, as amended by that certain Amendment No. 1 to Strategic Alliance Agreement dated as
of July 21, 2008, that certain Amendment No.2 to Strategic Alliance Agreement dated as of October 28, 2008. that certain Amendment to Strategic Alliance Agreement, dated as of October 7, 2009 and that certain Amendment No.4 to
Strategic Alliance Agreement, dated as of November 10, 2010 (collectively, the “Strategic Alliance Agreement”). Capitalized terms used and not otherwise defined herein are used with the meanings attributed thereto in the
Strategic Alliance Agreement. 
 RECITALS 
 WHEREAS, Quest Diagnostics currently provides Test Kit Services for the OVAl Test in the United States of America; 
 WHEREAS, Quest Diagnostics India operates a clinical laboratory in India and India is an Exclusive Territory under the Strategic Alliance Agreement; 

WHEREAS, the parties wish for Quest Diagnostics India to provide Test Kit Services for the OVAl Test in India; 

WHEREAS, Vermillion will invoice Quest Diagnostics India for the amounts payable hereunder in respect of the OVAl Test in India, and

 WHEREAS, the parties wish to establish royalties, fees and other payments for the OVAl Test as a Test Kit Service in India
different from the methodology set forth in Strategic Alliance Agreement. 
 NOW, THEREFORE, in consideration of the premises
and the mutual agreements herein contained, the parties hereto agree as follows: 
 AGREEMENT 

1. The royalties and fees schedule set forth in Schedule E-l to the Strategic Alliance Agreement shall not apply to the OVAl Test as a
Test Kit Service to be used or performed in India. Instead, the fees, royalties and other payments owing among the parties with respect to the OVA1 Test in India shall be governed in their entirety by the terms set forth in Exhibit 1 hereto, which
Exhibit 1 is hereby added to the Strategic Alliance Agreement as a new Schedule E-1-India thereto. 
 2. Quest Diagnostics India
shall determine the scope, content, timing and manner of any announcement, publicity and other communications about the OVA1 test or its availability in India. 

 *** Text Omitted and Filed Separately 

Confidential Treatment Requested 
 Under 17 C.F.R. §§ 200.80(b)(4) and 17 C.F.R. 24b-2 
  

 
Vermillion shall not announce, publicize or otherwise communicate about the availability of the OVA1 Test in India without Quest Diagnostics India’s prior written consent. except (i) to
the extent that information has been previously released or otherwise made public by Quest Diagnostics India or Vermillion pursuant to the terms of this Amendment and such information remains factually accurate in all respects, or (ii) to the
extent Vermillion is required to disclose any information by law on the advice of outside legal advisor (it being understood that Vermillion shall request confidential treatment of the financial terms of this Amendment from the Securities and
Exchange Commission). 
 3. Quest Diagnostics India shall be entitled to deduct any applicable income withholding tax (including
related cess) from amounts otherwise payable hereunder. Quest Diagnostics India and Vermillion shall cooperate in good faith to reduce the amount of any income withholding tax pursuant to the provisions of applicable law, including any applicable
income tax treaty. In the event that Quest Diagnostics India deducts income withholding tax from amounts due hereunder, Quest Diagnostics India shall provide to Vermillion evidence of payment of the income withholding tax to the applicable
governmental authority promptly upon request of Vermillion. Vermillion will make reasonable efforts to secure a PAN ID as quickly as possible. Quest Diagnostics India will provide reasonable assistance to Vermillion to secure the PAN ID and pay for
all reasonable costs associated with this process. 
 4. Except as amended hereby, the Strategic Alliance Agreement shall remain
unaltered and in full force and effect, and each of the Parties hereby ratifies and confirms the Strategic Alliance Agreement. Without limiting the foregoing, the Parties agree that (i) Schedule E-1 to the Strategic Alliance Agreement shall
remain in effect for the OVAl Test performed by Quest Diagnostics outside India and (ii) Schedule E to the Strategic Alliance Agreement shall remain in effect for any Licensed Laboratory Services and any Test Kit Services other than the OVAl
Test and PAD Test (which is covered in Amendment No.2) regardless of whether any such Licensed Laboratory Service or Test Kit Service involves any Proprietary Supplies or Test Kits purchased from or through Vermillion. 

IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the date first above written. 

 

									
	QUEST DIAGNOSTICS INCORPORATED	 		  	VERMILLION, INC.
					
	By:	 	 /s/ Kenneth R. Finnegan
	 		  	By:	 	 /s/ Gail S. Page

	Name:	 	 Kenneth R. Finnegan
	 		  	Name:	 	 Gail S. Page

	Title:	 	 Vice President, International
	 		  	Title:	 	 Chair of the Board

 

			
	QUEST DIAGNOSTICS INDIA PRIVATE LIMITED
		
	By:	 	 /s/ Kenneth R. Finnegan

	Name:	 	 Kenneth R. Finnegan

	Title:	 	 Director

 *** Text Omitted and Filed Separately 

Confidential Treatment Requested 
 Under 17 C.F.R. §§ 200.80(b)(4) and 17 C.F.R. 24b-2 
  

 EXHIBIT 1 TO AMENDMENT NO.5 TO STRATEGIC ALLIANCE AGREEMENT 

SCHEDULE E-1-India 
 ROYALTIES AND FEES TO VERMILLION (F/K/A CIPHERGEN BIOSYSTEMS) 

IN RESPECT OF OVAl TESTS IN INDIA 
 1. This Schedule E-1-India shall form a part of Schedule E-1 and notwithstanding anything to the contrary in Schedule 1 or the Agreement, the fees, royalties and all other payments owing between
Vermillion and Quest Diagnostics with respect to the OVAl Test performed by Quest Diagnostics India during the Exclusive Period (as defined in Schedule E-1) shall be governed in their entirety and solely by the terms of this Schedule E-1-India.

 2. For the first six months after the Commercial Launch of the OVA1 Test in India (such six-month period, the “Initial
Evaluation Period”), Quest Diagnostics India shall pay Vermillion a fixed payment equal to $[ *** ] for each OVA1 Test performed by Quest Diagnostics India. Promptly after the Initial Evaluation Period, the Parties shall re-evaluate the amount
payable in respect of the OVAl Test in India and shall negotiate in good faith appropriate, commercially reasonable change(s) to such amount. Pending mutual agreement of the Parties to such change(s), the amount payable in respect of the OVAl Test
performed by Quest Diagnostics India shall remain unchanged; provided that if the Parties cannot agree on the amount payable in respect of the OVAl Test in India within two (2) months after the end of the Initial Evaluation Period, then
commencing from the third month after the Initial Evaluation Period, Quest Diagnostics India shall pay Vermillion [ *** ] of its list price per OVAl Test performed in India as complete and total compensation therefore, provided that in no
event shall the amount paid to Vermillion be less than $[ *** ] per OVA1 test performed (the “Price Floor”); provided, however, that in the event that the Price Floor is greater than [ *** ] of the list price of the OVA1 Test
in India, Quest Diagnostics India shall have the right to initiate discussions with Vermillion to reduce the Price Floor and the parties shall in good faith negotiate a new minimum amount, provided that pending such agreement the amount
payable in respect of the OVAl Test performed by Quest Diagnostics India shall equal [ *** ] of its list price.Non-Competition, Non-Solicitation & Severance Benefit Agreement

 Exhibit 10.1 
 Non-Competition, Non-Solicitation & Severance Benefit Agreement 
 This Non-Competition, Non-Solicitation & Severance Benefit Agreement (“Agreement”) is entered into this 5th day of May 2011 between Choice Hotels International, Inc. (“Choice”), a Delaware corporation with principal
offices at 10750 Columbia Pike, Silver Spring, Maryland 20901, and Patrick Pacious (“Employee”). 
 Recitals

 A. Employee is a management-level employee of Choice or a subsidiary of Choice (collectively, “Choice”);

 B. Choice devotes significant time, resources and effort to the training and advancement of its management employees, and its
management team constitutes a significant asset and important competitive edge; 
 C. Choice has determined that it is in the
best interest of the company and its shareholders to enter into an agreement with Employee whereby Employee agrees to certain non-competition, non-solicitation and confidentiality restrictions in consideration of, among other things, certain
severance benefits. 
 NOW, THEREFORE, in consideration of the promises contained in this Agreement, and other good and valuable
consideration, the receipt and adequacy of which are hereby acknowledged, the parties agree to the following terms: 
 1.
Definitions. As used in this Agreement, the following terms shall have the ascribed meaning: 
 (a) “Board”
means the Board of Directors of Choice. 
 (b) “Cause” means any one or more of the following, whether occurring
before or after the date hereof: (i) Employee’s deliberate and continued refusal to carry out duties and instructions of the Board and CEO consistent with the position following notice by Choice and a five business days cure period;
(ii) Employee’s commission of an act materially detrimental to the financial condition, operations and/or goodwill of Choice; (iii) Employee’s gross negligence or willful misconduct in the performance of duties to Choice;
(iv) Employee’s commission of any act of theft, fraud, dishonesty, breach of trust or breach of fiduciary duty involving Choice; (v) Employee’s conviction of, or plea of guilty or nolo contendere to, a felony or any crime
involving moral turpitude, fraud or embezzlement; (vi) any breach by Employee of the covenants contained in this Agreement, or (vii) the material violation by Employee of any Choice policy or any statutory or common law duty to Choice.

 (c) “Change in Control” means the happening of the earliest of the following to occur: 

(i) Any “person” as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934,
as amended (other than (i) Choice, (ii) any trustee or other fiduciary holding securities under an employee benefit plan of Choice, (iii) any corporations owned, directly or indirectly, by the stockholders of Choice in substantially
the same proportions as their ownership of stock, or (iv) Stewart Bainum, his wife, their lineal descendants and their spouses (so long as they remain spouses) and the estate of any of the foregoing persons, and any partnership, trust,
corporation or other entity to the extent shares of common stock (or their equivalent) are considered to be beneficially owned by any of the persons or estates referred to in the foregoing provisions of this subsection 1(c) or any transferee
thereof) becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of Choice representing 33% or more of the combined voting power of Choice’s then outstanding voting
securities. 
 (ii) Individuals constituting the Board on the date of this Agreement and the successors of such
individuals (“Continuing Directors”) cease to constitute a 

  
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majority of the Board. For this purpose, a director shall be a successor if and only if he or she was nominated by a Board (or a Nominating Committee thereof) on which individuals constituting
the Board on the date of this Agreement and their successors (determined by prior application of this sentence) constituted a majority. 
 (iii) The stockholders of Choice approve a plan of merger or consolidation (“Combination”) with any other corporation or legal person, other than a Combination which would result in stockholders
of Choice immediately prior to the Combination owning, immediately thereafter, more than sixty-five percent (65%) of the combined voting power of either the surviving entity or the entity owning directly or indirectly all of the common stock,
or its equivalent, of the surviving entity; provided, however, that if stockholder approval is not required for such Combination, the Change in Control shall occur upon the consummation of such Combination. 

(iv) The stockholders of Choice approve a plan of complete liquidation of Choice or an agreement for the sale or
disposition by Choice of all or substantially all of Choice’s stock and/or assets, or accept a tender offer for substantially all of Choice’s stock (or any transaction having a similar effect); provided, however, that if stockholder
approval is not required for such transaction, the Change in Control shall occur upon consummation of such transaction. 
 (d)
“Change in Control Termination” means and includes the termination of Employee’s employment with Choice at any time during the twelve (12) month period after a Change in Control if such termination is (i) by Choice for any
reason other than Cause, (ii) by Employee for Good Reason. 
 (e) “Competing Business” means any business or
enterprise that: (i) is engaged in the mid-market or economy hotel franchising business, (ii) competes in the same upscale, select service segment as Cambria Suites or any successor or substantially similar Choice brand, or
(iii) competes in any other line of business in which Choice is materially engaged at the time of the Termination Date. 

(f) “Confidential Information” means any non-public information, in any format, relating to the business of Choice, including,
but not limited to, present or prospective operating, marketing and development plans, training manuals, training policies and procedures, financial and technical information, passwords, source codes, personnel information, franchisee information,
business systems, trade secrets, pricing and cost information, contact lists, strategic plans or strategies, operating data or Choice policies. 
 (g) “Disability” means if Employee is unable to perform the essential functions of Employee’s position, after any legally required reasonable accommodation, for more than 180 days (whether
or not consecutive) in any period of 365 consecutive days. 
 (h) “Good Reason” means a voluntary termination by
Employee following a material, substantial change in either Employee’s compensation or position and responsibilities, provided such termination occurs within forty-five days of the change in compensation or position. Employee must provide
Choice with at least thirty (30) days’ prior written notice of electing a Good Reason termination. 
 (i)
“Release Agreement” means the release of claims attached as Exhibit A. 
 (j) “Severance Benefits” means the
benefits specified in Section 5. 
 (k) “Severance Benefit Period” means the seventy (70) week period
following the Termination Date. 
 (l) “Termination Date” means the date the Employee’s employment with Choice
ends. 
 (m) “Works” means any ideas, concepts, methods of operation, processes, programs or other materials
(including training manuals, policies and procedures) that Employee conceived, created, developed or wrote while employed by Choice that relate in any manner to the business of Choice. 

  
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 2. Confidentiality. Employee acknowledges that Confidential Information and Works are
valuable and unique assets belonging to Choice. During employment and after the Termination Date, Employee shall not, except as required by law or by Employee’s duties for Choice and for the benefit of Choice, directly or indirectly, or cause
others to, make use of or disclose to others any Confidential Information or Works. Notwithstanding the foregoing, Confidential Information does not include information which was or becomes generally available to the public other than as a result of
a disclosure by Employee. Works constitute works made for hire and in all circumstances shall be and remain the sole and exclusive property of Choice, whether or not protectable under any laws, including patent, trademark, copyright or trade secret
laws. 
 3. Non-Solicitation. During employment and for a period of seventy (70) weeks following the Termination
Date, Employee agrees, except as required by Employee’s duties for Choice and for the benefit of Choice or with the prior written consent of Choice, not to solicit or attempt to solicit, directly or indirectly, on Employee’s behalf or on
behalf of any other person or entity, any person or entity who then is or who was as of the Termination Date, an employee, business partner or franchisee of Choice, or was actively solicited to have such a relationship with Choice within six
(6) months prior to the Termination Date, to cease, curtail or refrain from entering into such a relationship with Choice. Nothing in the foregoing shall be construed as preventing Employee from otherwise lawfully soliciting business from any
then current or prospective business partner or franchisee that is for a line of business other than any Competing Business. 

4. Non-Competition. During employment and for a period of seventy (70) weeks after the Termination Date, Employee will not,
except as required by Employee’s duties for Choice and for the benefit of Choice, or with the prior written consent of the Board, directly or indirectly, own, manage, operate, join, control, finance or participate in the ownership, management,
operation, control or financing of, or be connected as an officer, director, employee, partner, principal, agent, representative, consultant or in any other capacity, or use or permit Employee’s name to be used in connection with, any business
or enterprise that is engaged in a Competing Business in the U.S. or Canada; provided, however, that the foregoing shall not be construed as preventing Employee from otherwise lawfully (i) investing Employee’s assets in (A) the
securities of any Competing Business that is a public company, or (B) the securities of any Competing Business that is a privately-held corporation, limited partnership, limited liability company or other business entity, if such holdings are
passive investments of one percent (1%) or less of such entity’s outstanding securities or (ii) becoming an employee, agent or representative of, consultant to, or otherwise connected with, any business entity that has multiple lines
of business, some of which are not a Competing Business, if Employee’s services for such entity are restricted so that Employee will provide no services or other assistance in support of, and will not otherwise be involved with, any such
Competing Business conducted by such entity. 
 5. Severance Benefits. If Employee terminates for Good Reason or is
terminated by Choice for any reason other than Cause, Change in Control Termination, Disability or death and Employee executes the Release Agreement within twenty-one (21) days of the Termination Date (or forty-five (45) days if such
longer review period is required by the ADEA) and has not revoked the Release Agreement as permitted therein, Choice shall provide to Employee, in consideration of Employee’s promises and covenants contained in this Agreement and the Release
Agreement, a Severance Benefit equal to: 
  

	 	(a)	During the Severance Benefit Period, a bi-weekly payment equal to Employee’s bi-weekly base salary rate on the Termination Date, less standard deductions, payable
in installments in accordance with Choice’s normal payroll practices (“Discretionary Pay”) ; 

  

	 	(b)	If the Termination Date occurs after June 30 in a given year, then Employee shall be eligible for full payout of the bonus for that fiscal year based on the actual
attainment level for the company objectives and at 100% deemed attainment of the individual Management Bonus Objectives. The bonus will be paid out, if at all, at such time as the other corporate officers receive their bonus.

  

	 	(c)	Stock option and stock awards granted under Choice’s Long-Term Incentive Plan after the date of this Agreement shall continue to vest and be exercisable during the
Severance Benefit Period. At the end of the Severance Benefit Period, vesting shall cease and Employee shall have 90 days thereafter to exercise all stock options that are vested at the end of the Severance Benefit Period. 

  
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	 	(d)	During the Severance Benefit Period, Choice will provide Employee at its expense with its standard outplacement services for executive level employees. Upon obtaining
other employment, Employee will be ineligible to continue receiving these outplacement services at Choice’s expense. 

  

	 	(e)	During the Severance Benefit Period, (i) Employee may continue deductions for medical, dental, and pre-tax spending accounts while receiving Discretionary Pay, and
Employee consents to the customary deductions for such benefits from Discretionary Pay, and (ii) Choice will continue to pay employer contributions to Employee’s medical and dental insurance, and pre-tax spending accounts while Employee is
receiving Discretionary Pay. Choice will stop optional deductions for items such as retirement plans and life insurance with Employee’s last paycheck for regular hours worked through the Termination Date. Employee will be eligible to continue
group health and dental benefits at Employee’s own expense in accordance with and to the extent required by the federal COBRA law. 

 6. Re-employment. After the Termination Date, Employee shall not be required to mitigate damages as a condition to receiving Severance Benefits, but nevertheless shall be entitled to pursue other
employment as permitted by this Agreement. If Employee chooses to pursue and accept other employment or consulting during the Severance Benefit Period, Choice shall be entitled to receive as an offset, and thereby reduce its payment under Sections
5(a) and (b), the amounts received by Employee from any other active employment. Employee agrees to notify Choice within seven (7) days of accepting such employment by sending such notice to Choice Hotels International, 10750 Columbia Pike,
Silver Spring, Maryland 20901, Attention: Vice President — Human Resources. As a condition to Employee receiving the Severance Benefits from Choice, Employee agrees to permit verification of Employee’s employment records and Federal income
tax returns by an independent attorney or accountant, selected by Choice but reasonably acceptable to Employee, who agrees to preserve the confidentiality of the information disclosed by Employee except to the extent required to permit Choice to
verify the amounts received by Employee from other active employment. Choice shall receive credit for unemployment insurance benefits, social security insurance or like amounts actually received by Employee. 

7. Change in Control. 
 (a) If, within twelve (12) months after a Change in Control, there occurs a Change in Control Termination, Employee shall receive as severance compensation a lump sum payment in an amount equal to
200% of Employee’s base salary at the rate in effect as of the Termination Date, plus 200% of the amount of any full year bonus awarded to Employee for the year immediately preceding the Change in Control (or the target bonus if no such bonus
was awarded in the prior year). Additionally, all unvested restricted stock, performance vested restricted stock units and stock option awards granted after the date of this Agreement and then held by Employee shall automatically become fully vested
as of the date of the Change of Control Termination. 
 (b) Employee’s right to receive the benefits described in
Section 7(a) shall be conditioned upon Employee executing the Release Agreement. 
 8. Excise Tax. 

(a) Anything in this Agreement to the contrary notwithstanding, if it shall be determined that any payment or distribution to the
Employee or for the Employee’s benefit (whether paid or payable or distributed or distributable) pursuant to the terms of this Agreement or otherwise (the “Payment”) would be subject to the excise tax imposed by Section 4999 of
the Internal Revenue Code (the “Excise Tax”), then the Employee shall be entitled to receive from Choice an additional payment (the “Gross-Up Payment”) in an amount such that the net amount of the Payment and the Gross-Up Payment
retained by the Employee after the calculation and deduction of all Excise Taxes (including any interest or penalties imposed with respect to such taxes) on the Payment and all federal, state and local income tax, employment tax and Excise Tax
(including any interest or penalties imposed with respect to such taxes) on the Gross-Up Payment provided for in this Section, and taking into account any lost or reduced tax deductions on account of the Gross-Up Payment, shall be equal to the
Payment; 

  
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 (b) All determinations required to be made under this Section, including whether and when
the Gross-Up Payment is required and the amount of such Gross-Up Payment, and the assumptions to be utilized in arriving at such determinations shall be made by Accountants which Choice shall request provide the Employee and Choice with detailed
supporting calculations with respect to such Gross-Up Payment at the time the Employee is entitled to receive the Payment. For the purposes of this Section, the “Accountants” shall mean Choice’s independent certified public
accountants. All fees and expenses of the Accountants shall be borne solely by Choice. For the purposes of determining whether any of the Payments will be subject to the Excise Tax and the amount of such Excise Tax, such Payments will be treated as
“parachute payments” within the meaning of Section 280G of the Code, and all “parachute payments” in excess of the “base amount” (as defined under Section 280G(b)(3) of the Code) shall be treated as subject to
the Excise Tax, unless and except to the extent that in the opinion of the Accountants such Payments (in whole or in part) either do not constitute “parachute payments” or represent reasonable compensation for services actually rendered
(within the meaning of Section 280G(b)(4) of the Code) in excess of the “base amount,” or such “parachute payments” are otherwise not subject to such Excise Tax; for purposes of determining the amount of the Gross-Up Payment
the Employee shall be deemed to pay Federal income taxes at the highest applicable marginal rate of Federal income taxation for the calendar year in which the Gross-Up Payment is to be made and to pay any applicable state and local income taxes at
the highest applicable marginal rate of taxation for the calendar year in which the Gross-Up Payment is to be made, net of the maximum reduction in Federal income taxes which could be obtained from the deduction of such state or local taxes if paid
in such year (determined without regard to limitations on deductions based upon the amount of the Employee’s adjusted gross income); and to have otherwise allowable deductions for Federal, state and local income tax purposes at least equal to
those disallowed because of the inclusion of the Gross-Up Payment in the Employee’s adjusted gross income. Any Gross-Up Payment with respect to any Payment shall be paid by Choice at the time the Employee is entitled to receive the Payment. Any
determination by the Accountants shall be binding upon Choice and the Employee. As a result of uncertainty in the application of Section 4999 of the Code at the time of the initial determination by the Accountants hereunder, it is possible that
the Gross-Up Payment made will have been an amount less than Choice should have paid pursuant to this Section (the “Underpayment’). In the event that Choice exhausts its remedies and the Employee is required to make a payment of any Excise
Tax, the Underpayment shall be promptly paid by Choice to or for the Employee’s benefit. 
 9. Acknowledgments.
Employee and Choice acknowledge and agree as follows: 
 (a) The restrictions contained in Sections 2, 3 and 4 are
reasonable and necessary to protect and preserve the legitimate interests, properties, goodwill and business of Choice, that Choice would not have entered into this Agreement in the absence of such restrictions and that irreparable injury will be
suffered by Choice should the Employee breach any of those provisions. Employee represents and acknowledges that (i) the Employee has been advised by Choice to consult Employee’s own legal counsel at Employee’s expense prior to
executing this Agreement, and (ii) that the Employee has had full opportunity, prior to execution of this Agreement, to review thoroughly this Agreement with the Employee’s counsel. 

(b) A breach of any of the restrictions in this Agreement cannot be adequately compensated by monetary damages and Choice shall be
entitled to seek preliminary and permanent injunctive relief, without the necessity of proving actual damages, as well as any other appropriate equitable relief, which rights shall be cumulative and in addition to any other rights or remedies to
which Choice may be entitled. 
 (c) In the event that any of the provisions of this Agreement should ever be adjudicated to
exceed the time, geographic, service, or other limitations permitted by applicable law in any jurisdiction, it is the intention of the parties that the provision shall be amended to the extent of the maximum time, geographic, service, or other
limitations permitted by applicable law, that such amendment shall apply only within the jurisdiction of the court that made such adjudication and that the provision otherwise be enforced to the maximum extent permitted by law. The invalidity of any
provision of this Agreement shall not effect the validity of the remaining provisions of this Agreement. 
 (d) This Agreement
supersedes and extinguishes any rights Employee may have under Choice’s standard Severance Benefit Plan. 

  
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 (e) This Agreement shall not be construed as giving the Employee the right to be retained in
the service of Choice for any definite period or otherwise to change Employee’s status as an at-will employee. 
 (f) If
required under Section 409A of the Internal Revenue Code, any Severance Benefit or Change of Control payment will made six (6) months following the Termination Date. 
 (g) Employee agrees that Employee is not entitled to any unemployment benefits, and, to the extent permitted by law, that Employee does not intend to seek any unemployment benefits, during the Severance
Benefit Period. Choice will not contest Employee’s claim for unemployment benefits after the Severance Benefit Period. 

9. Miscellaneous.  
 (a) This Agreement contains the entire agreement of the parties, and supersedes all other agreements, discussions or understandings concerning the subject matter. It may be changed only by an agreement in
writing signed by both parties. 
 (b) This Agreement shall be governed by the laws of the State of Maryland, and any disputes
arising out of or relating to this Agreement shall be brought and heard in any court of competent jurisdiction in the State of Maryland. Each party submits to the venue and jurisdiction of said courts. 

(c) No failure by either party hereto at any time to give notice of any breach by the other party of, or to require compliance with, any
condition or provision of this Agreement shall be deemed a waiver. 
 IN WITNESS WHEREOF, the parties have executed this
Agreement on the date first set forth above. 
  

			
	CHOICE HOTELS INTERNATIONAL, INC.
		
	By:	 	 /s/ Patrick Cimerola

		 	Patrick Cimerola, Senior Vice President
	
	Employee:
	
	 /s/ Patrick Pacious

	Patrick Pacious

  
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 EXHIBIT A 
 RELEASE AGREEMENT 
 This Release Agreement (“Release Agreement”)
is made as of                 , 20     by
                     (“Employee”) in favor of Choice Hotels International, Inc. and its subsidiaries (collectively
“Choice”). 
 WHEREAS, Employee and Choice have previously entered into a Non-Competition, Non-Solicitation and
Severance Benefit Agreement dated November     , 2007 (“Agreement”); and 
 WHEREAS, in
consideration for certain covenants and benefits under the Agreement, Employee is obligated to execute this Release Agreement upon termination of employment; 
 NOW, THEREFORE, in consideration of the promises contained in this Agreement, and other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties agree to the
following terms: 
 1. Last Day Worked. Employee’s employment terminated, or will terminate, on
                , 20     (“Termination Date”). Employee will return to Choice, no later than the close of business on the
Termination Date, any Choice property, including original and copied computer hardware or software, credit cards, long distance telephone cards, and keys or passcards to Choice buildings, and all other property in Employee’s possession, custody
or control. 
 2. Release. Employee agrees, in exchange for the benefits set forth in the Agreement, to irrevocably and
unconditionally release Choice and its parents, subsidiaries and affiliated entities, and each of their respective officers, directors, shareholders, employees, agents, representatives, insurers, attorneys, employee welfare benefit plans and pension
or deferred compensation plans under Section 401 of the Internal Revenue Code of 1954, as amended, and their trustees, administrators and other fiduciaries; and all persons acting by, through, under or in concert with them, and each of their
predecessors, successors and assigns or any of them (collectively “Choice Releasees”), of and from any and all manner of action or actions, cause or causes of action, in law or equity, suits, debts, liens, contracts, agreements, promises,
liability, claims, demands, grievances, damages, loss, cost or expense, of any nature, known or unknown, fixed or contingent, which Employee now has or may later have against the Choice Releasees, or any one of them, by reason of any matter, cause,
or thing from the beginning of time to the Effective Date of this Agreement, including without limitation those arising out of, based on, or relating to the hire, employment, termination, remuneration (including any severance, salary, bonus,
incentive or other compensation; vacation sick leave or medical insurance benefits; or any benefits from any employee stock ownership, profit-sharing and/or any deferred compensation plan under Section 401 of the Internal Revenue Code of 1954
(“Claims”). The Claims that Employee is releasing include, but are not limited to, a release of any rights or claims Employee may have under: 
  

	 	•	 	 the Age Discrimination in Employment Act, which prohibits age discrimination in employment; 

 

	 	•	 	 Title VII of the Civil Rights Act of 1964, which prohibits discrimination in employment based on race, color, national origin, religion or sex;

  

	 	•	 	 the Civil Rights Act of 1991; 

  

	 	•	 	 the Equal Pay Act, which prohibits paying men and women unequal pay for equal work; 

 

	 	•	 	 the Americans with Disabilities Act; 

  

	 	•	 	 the Family and Medical Leave Act; 

  

	 	•	 	 and any other federal, state or local laws or regulations prohibiting employment discrimination, harassment or retaliation.

 Employee also releases any Claims for wrongful discharge or breach of contract, Claims for any personal injury or tort,
Claims for any compensation, benefits, expenses, bonuses, or any other employee rights or benefits, Claims for employment or reinstatement, Claims for attorneys’ fees and costs, and all other Claims under any applicable statute, contract or
other cause of action. This Agreement covers both Claims Employee knows about and those Employee may not know about. Employee assumes the risk of any and all unknown Claims which may exist at the time Employee signs this Agreement, and Employee
agrees that this Agreement shall apply to any and all known and unknown Claims. 

  
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 3. No Release of Rights Under Agreement. By signing this Release Agreement, Employee
does not waive or release Employee’s right to enforce the Agreement. Employee does not release claims for or rights to earned compensation, vested benefits or indemnification under Choice’s bylaws. 

4. Lawsuits. To the fullest extent permitted by law, Employee promises never to file a lawsuit, claim, complaint, charge, demand,
administrative proceeding, agency action or any other legal proceeding (collectively “Lawsuit”) asserting any Claims that are released in this Agreement. Employee agrees to withdraw with prejudice all Lawsuits, if any, Employee has filed
against any Choice Releasee asserting any Claims with any agency or court. Employee also waives the right to seek or receive any monetary benefits with respect to Lawsuits asserted by administrative agencies or other third parties on Employee’s
behalf. Employee further agrees not to assist any other person in bringing any Lawsuit against any Choice Releasee, unless compelled to do so pursuant to a valid court order or subpoena. Employee agrees not to make any derogatory remarks or provide
and disparaging information about any Choice Releasee. Employee agrees to reasonably assist Choice in any Lawsuit arising from circumstances that took place during Employee’s employment, to the extent reasonably necessary to protect
Choice’s interests. Choice will reimburse Employee for all reasonable and necessary expenses Employee incurs in complying with the foregoing sentence, provided they are approved by Choice in writing prior to being incurred. 

5. No Admission. Employee agrees that this Release Agreement is not an admission of guilt or wrongdoing by the Choice Releasees,
and Employee acknowledges that the Choice Releasees do not believe or admit that they have done anything wrong. Employee acknowledges that Employee has not suffered any wrongful treatment by any Choice Releasee. 

6. Breach. If Employee breaches this Release Agreement and files a Lawsuit against any Choice Releasee on Claims that Employee
released in this Release Agreement, Employee agrees to pay for all costs incurred by the Choice Releasee, including reasonable attorneys’ fees, in defending against Employee’s Lawsuit. Employee further agrees not to assist any other person
in bringing any Lawsuit against any Choice Releasee, unless compelled to do so pursuant to a valid subpoena or court order. If Employee breaches the promises in this Release Agreement, Choice may terminate all Severance Benefits under the Agreement
that are still owed to Employee. 
 7. Governing Law. This Agreement is governed by Maryland law, without regard to the
principles of conflicts of laws. If a dispute arises under this Agreement, any Lawsuit must be brought exclusively in the courts for Montgomery County, Maryland. Employee and Choice voluntarily submit to the jurisdiction and venue of said court.

 8. Binding. Employee agrees and acknowledges this Release Agreement binds Employee’s heirs, administrators,
representatives, executors, successors, and assigns, and will inure to the benefit of all Choice Releasees and their respective heirs, administrators, representatives, executors, successors, and assigns. 

9. Severability. Any invalidity, in whole or in part, of any provision of this Release Agreement shall not affect the validity of
any other of its provisions. 
 10. Period for Review and Consideration. Employee has 21 days from the date Employee
receives this Release Agreement to review and consider this document before signing it. Employee may use as much of this 21 day period as Employee wishes before signing this Release Agreement. Choice advises Employee to consult with an attorney at
Employee’s own expense before signing this Release Agreement; whether to do so is Employee’s decision. If Employee wishes to sign this Release Agreement and thereafter be eligible to receive the Severance Benefits under the Agreement,
Employee must deliver one fully executed original of this Release Agreement, to Choice Hotels International, 10750 Columbia Pike, Silver Spring, Maryland 20901, Senior Vice President— Human Resources, no later than the close of business on the
21st day after Employee receives this Release Agreement. Employee’s failure to deliver timely the executed Release Agreement will nullify the Agreement, and Employee will not be entitled to receive the Severance Benefits. 

  
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 11. Revocation of Release Agreement. Employee may revoke this Release Agreement
within 7 days after signing it (the “Revocation Period”). If Employee wishes to revoke this Release Agreement after signing it, Employee must deliver a written notice of revocation to Choice Hotels International, 10750 Columbia Pike,
Silver Spring, Maryland 20901, Attention: Senior Vice President, Human Resources. Choice must receive this revocation no later than the close of business on the 7th day after Employee signs this Release Agreement. If Employee revokes this Release
Agreement, it shall not be effective or enforceable and Employee will not receive the Severance Benefits under the Agreement.] This Agreement will not become effective or enforceable until such date that is is signed by both parties and the
Revocation Period expires without Employee exercising Employee’s right of revocation (the “Effective Date”). 

EMPLOYEE ACKNOWLEDGES THAT EMPLOYEE HAS HAD AN OPPORTUNITY TO REVIEW AND CONSIDER THIS RELEASE AGREEMENT WITH AN ATTORNEY, AND THAT
EMPLOYEE HAS HAD SUFFICIENT TIME TO CONSIDER IT. AFTER SUCH CAREFUL CONSIDERATION, EMPLOYEE KNOWINGLY AND VOLUNTARILY ENTERS INTO THIS RELEASE AGREEMENT WITH FULL UNDERSTANDING OF ITS MEANING AND EFFECT. 

 

	
	Employee:
	
	  

  
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