Charney v. American Apparel. On June 18, 2014, American Apparel’s Board of Directors suspended its CEO, Xxx Xxxxxxx, and gave notice of the Company’s intention to terminate him for cause. On June 23, 2014, Xx. Xxxxxxx commenced arbitration against the Company and asserted claims “in excess of $50 million” for the Company’s alleged “breach of employment agreement, breach of covenant of good faith and fair dealing, retaliatory discharge, violation of Age Discrimination in Employment Act, intentional infliction of emotional distress, defamation and related claims.” That matter has been stayed by agreement of the parties pursuant to the Nomination, Support, and Standstill Agreement dated as of July 9, 2014, and appended to the Form 8-K filed by the Company with the SEC. Schedule 3.13 Environmental Compliance None. None. Schedule 3.14 Labor Contracts Exhibit A Form of Assignment and Acceptance ASSIGNMENT AND ACCEPTANCE Reference is made to the Credit Agreement dated as of March 25, 2015 (as amended, modified, supplemented or restated and in effect from time to time, the “Credit Agreement”) by and among (i) American Apparel (Carnaby) Limited as the Initial Borrower and the Additional Borrowers party thereto (together with the Initial Borrower, the “Borrowers”), (ii) American Apparel, Inc. as Guarantor, (iii) Standard General L.P., on behalf of one or more of its controlled funds (“Standard General”) and (iv) the other Lenders party thereto. Capitalized terms used herein and not defined herein shall have the meanings assigned to such terms in the Credit Agreement. (the “Assignor”) and (the “Assignee”) agree as follows:
Charney v. American Apparel. On June 18, 2014, American Apparel’s Board of Directors suspended its CEO, Xxx Xxxxxxx, and gave notice of the Company’s intention to terminate him for cause. On June 23, 2014, Xx. Xxxxxxx commenced arbitration against the Company and asserted claims “in excess of $50 million” for the Company’s alleged “breach of employment agreement, breach of covenant of good faith and fair dealing, retaliatory discharge, violation of Age Discrimination in Employment Act, intentional infliction of emotional distress, defamation and related claims.” That matter was stayed by agreement of the parties pursuant to the Nomination, Support, and Standstill Agreement dated as of July 9, 2014, and appended to the Form 8-K filed by the Company with the SEC. On March 26, 2015, Xxxxx Xxxx, who purports to represent Xxx Xxxxxxx, requested a lift of the stay and has reinitiated arbitration. Xx. Xxxx alleges that he intends to demand up to $35 million, plus the return of art that is hanging in the Factory, which he alleges is owned by Xx. Xxxxxxx. The Company has asserted that Xx. Xxxx has a conflict of interest and cannot represent parties adverse to the Company, in particular in respect of labor and employment claims. On May 12, 2015, an arbitrator was appointed. Arbitration is scheduled for February 7, 2017. The Company has tendered this matter to its insurance carriers and is awaiting coverage positions.
Charney v. American Apparel. On June 18, 2014, American Apparel’s Board of Directors suspended its CEO, Dov Cxxxxxx, xxx gave notice of the Company’s intention to terminate him for cause. On June 23, 2014, Mr. Cxxxxxx xxxxenced arbitration against the Company and asserted claims “in excess of $50 million” for the Company’s alleged “breach of employment agreement, breach of covenant of good faith and fair dealing, retaliatory discharge, violation of Age Discrimination in Employment Act, intentional infliction of emotional distress, defamation and related claims.” That matter has been stayed by agreement of the parties pursuant to the Nomination, Support, and Standstill Agreement dated as of July 9, 2014, and appended to the Form 8-K filed by the Company with the SEC.
