EMPLOYMENT AGREEMENT
Exhibit 10.10
This Employment Agreement (this "Agreement") dated and effective on September 23, 2009 (the "Effective Date"), is entered into by and between Aeropostale, Inc., a Delaware corporation (the "Company"), and Xxxxx X. Xxxxx, an individual residing at 00 Xxxxxxxxx Xxxx, Xxxxxxxxxx, XX 00000 (the "Executive").
WHEREAS, the Company is a mall-based specialty retailer of casual and active apparel for young women and men; and
WHEREAS, the Executive is presently employed by the Company pursuant to an Employment Agreement dated March 16, 2007 (the “Prior Employment Agreement”). The Company and Executive now wish to modify the existing employment relationship in this Agreement and terminate and replace the Prior Employment Agreement with
this Agreement.
NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, it is hereby mutually agreed by and between the parties hereto as follows:
1. Definitions.
For purposes of this Agreement, the terms listed below shall be defined as indicated.
“Affiliate” shall mean a domestic or foreign business entity controlled by, controlling
or under common control with the Company.
“Annual Bonus” shall mean such bonus payment payable to Executive
under the AIP for the applicable fiscal year.
“Board” shall mean the Board of Directors of the Company.
“Cause” shall have the meaning ascribed to it in Section 8.1.
“Company Competitors” shall mean those companies listed on Exhibit A hereto, which includes all subsidiaries, related companies and affiliates of those companies listed on Exhibit A.
“Confidential Information” shall
mean all proprietary information of the Company and its Subsidiaries, not otherwise publicly disclosed (except if disclosed by the Executive in violation of this Agreement), whether or not discovered or developed by Executive, known by Executive as a consequence of Executive’s employment with the Company at any time (including prior to the commencement of this Agreement) as an Executive or agent. Without limiting the generality of the foregoing, such proprietary information shall include (a) customer lists;
(b) acquisition, expansion, marketing, financial and other business information and plans; (c) research and development; (d) computer programs; (e) sources of supply; (f) identity of specialized consultants and contractors and confidential information developed by them for the Company and its Subsidiaries; (g) purchasing, operating and other cost data; (h) special customer needs, cost and pricing data; (i) manufacturing methods; (j) quality control information; (k) inventory techniques; (l) information which
the Executive possesses; any of which information is not generally known in the industries in which the Company and its Subsidiaries are conducting business or shall at any time during Executive’s Employment conduct business including (without limitation) the apparel retailing industry. Confidential Information also includes the overall business, financial, expansion and acquisition plans of the Company and its Subsidiaries, and includes information contained in manuals, memoranda, projections, minutes,
plans, drawings, designs, formula books, specifications, computer programs and records, whether or not legended or otherwise identified by the Company and its Subsidiaries as Confidential Information, as well as information which is the subject of meetings and discussions and not so recorded.
“Disability” shall mean the absence
of the Executive from the Executive’s duties to the Company on a full-time basis for a total of 120 days during any 12-month period as a result of incapacity due to mental or physical illness which is determined to be permanent by a physician selected by the Company and acceptable to the Executive or the Executive’s legal representative (such agreement as to acceptability not to be withheld unreasonably).
“EPS” or “Earnings Per Share” in accordance with Financial
Accounting Standard Board Statement No. 128 “Earnings per Share.” Is defined as:
Basic – computed by dividing income available to common shareholders (numerator) by the weighted average number of common shares outstanding (denominator).
Diluted – computed with same numerator as basic, but denominator is increased to include the number of additional common shares that would have been outstanding if the dilutive potential common shares had been issued.
“Fiscal Year” shall mean the 52 or 53-week period ending on the Saturday closest to January 31 of each calendar year. Fiscal Years shall be referred to
herein on the basis of the calendar year that contains 11 months of such Fiscal Year.
“Inventions” shall
mean those discoveries, developments, concepts and ideas, whether or not patentable, relating to the present, future and prospective activities and Products and Services of the Company and its Subsidiaries, which such activities and Products and Services are known to Executive by virtue of Executive’s employment with the Company and its Subsidiaries.
“Operating Income” shall
mean the Company’s Operating Income as reported in the Company’s financial statements filed with Securities and Exchange Commission in accordance with Generally Accepted Accounting Procedures consistently applied (“GAAP”).
“Prior Employment Agreement” shall mean that certain Employment Agreement dated March 16, 2007, between the Company
and Executive.
“Restricted Period” shall mean the period beginning on the Effective Date and ending on
the last day of the fifteenth (15th) month after termination of Executive’s employment.
“Salary” shall mean such annual or pro rata amount, as the case may be, paid to Executive pursuant to sections 2(a)(i) or 2(b)(i) of this Agreement for the applicable fiscal year.
“Subsidiary” shall mean any entity of which the Company owns, directly or indirectly, 50% or more of the aggregate voting power
of the voting securities.
“Term” shall mean the period beginning on the Effective Date and continuing through the second anniversary of the Election Date.
2. Employment, Duties and Compensation.
(a) Interim Employment Period. From the Effective Date through the date upon which the Company’s Chairman and Chief Executive Officer elects to modify his role with the Company in accordance
with the terms of his employment agreement, and no longer serve as the Company’s Chief Executive Officer (the “Election Date”), the Executive shall continue in her current role with the Company as President and Chief Merchandising Officer reporting to the Company’s Chief Executive Officer. The period from the Effective Date through the Election Date is hereinafter referred to as the “Interim Employment Period”.
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(i)Base Salary. The Company shall pay to Executive, during the Interim Employment Period, an annual base salary (the “Interim Base Salary”) of $850,000 per annum. |
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(ii)Annual Incentive. During
the Interim Employment Period, Executive shall continue to be eligible to participate in the Company’s Annual Incentive and Bonus Plan (the “AIP”). Based upon the successful completion of stated goals as set forth by the Company in the AIP for each fiscal year prior to the Election Date Executive shall continue to be eligible to receive as a cash bonus up to,
but not greater than, 250% of her Salary for the applicable fiscal year (it being understood that the calculation of the amount of such bonus shall be as set forth in the AIP for such fiscal year) as well as equity compensation from the Company which may include, among other things, options, restricted stock awards, long-term cash plans, performance shares or such other equity compensation determined to be included in the AIP by the Company and the Company’s Compensation Committee. Company reserves the
right to amend, modify or cancel the AIP; provided that if Company does modify the financial goals of the AIP for any Fiscal Year which were set by Company at the commencement of such Fiscal Year, such modification will not affect the calculation of Employee’s AIP Bonus for such Fiscal Year, if any (in other words Employee’s AIP bonus, if any, shall be calculated pursuant to the financial goals set at the commencement of the applicable Fiscal Year). Executive shall be entitled to receive
the bonus payment, if any, for the applicable fiscal year, so long as Executive is employed with the Company and in good standing throughout the full duration of that fiscal year. Such bonus payment, if any, will however be paid to Executive at the time all other Company bonuses are paid for such fiscal year. |
(b)Post-Election Employment Period. For the remainder of the Term of this Agreement after the Election Date, the Company hereby continues to engage Executive and Executive hereby agrees to continue to provide to the Company her full-time services as Co-Chief Executive
Officer of the Company, reporting to the Company’s Board of Directors. The Executive’s duties shall consist of those duties and responsibilities currently performed by her plus such other duties consistent with those generally applicable to a person bearing said title, and as the Company’s Board shall from time to time direct, provided such directives are consistent with the duties of a Co-Chief Executive Officer. In addition, in the event that, after the Election Date,
a recommendation is made to alter materially the Executive’s duties, roles, responsibilities or direct reporting structure, then any such material alteration must be mutually agreed upon by the Executive and the Company’s other Co-Chief Executive Officer prior to its implementation. If Executive and the Company’s other Co-Chief Executive Officer cannot agree on such material alteration; then the Company’s Board shall make the final determination, which decision shall be final and
binding upon the Executive.
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(i)Base Salary The Company shall pay to Executive, during the Post-Election Employment Period, an annual base salary (the “Base Salary”) of $900,000 per annum. The Base Salary shall be reviewed annually by the
Company and the Board and may be increased if the Company and the Board, in their sole and absolute discretion, determine that such an increase is advisable based on such factors as the Company shall consider appropriate from time to time (it is understood that under no circumstances shall such review cause a decrease in Executive’s Base Salary). Executive’s Base Salary shall be payable in accordance with the Company’s customary Executive payroll policy as in effect from time
to time (but in no event less frequently than monthly). Such Base Salary, together with any other compensation which may be payable to Executive hereunder, shall be less such deductions as shall be required to be withheld by applicable law and regulations and shall be pro-rated for any period that does not constitute a full twelve (12) month period. |
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(ii) Annual Incentive. During the Post-Election Employment
Period, Executive shall continue to be eligible to participate in the Company’s Annual Incentive and Bonus Plan (the “AIP”). Based upon the successful completion of stated goals as set forth by the Company in the AIP for the 2010 fiscal year and beyond, through the Term, Executive shall be eligible to receive as a cash bonus up to, but not greater than, 300%
of her Salary (it being understood that the calculation of the amount of such bonus shall be as set forth in the AIP for such fiscal year) as well as equity compensation from the Company which may include, among other things, options, restricted stock awards, long-term cash plans, performance shares or such other equity compensation determined to be included in the AIP by the Company and the Company’s Compensation Committee. Company reserves the right to amend, modify or cancel the AIP; provided that if
Company does modify the financial goals of the AIP for any Fiscal Year which were set by Company at the commencement of such Fiscal Year, such modification will not affect the calculation of Employee’s AIP Bonus for such Fiscal Year, if any (in other words Employee’s AIP bonus, if any, shall be calculated pursuant to the financial goals set at the commencement of the applicable Fiscal Year). Executive shall be entitled to receive the bonus payment, if any, for the applicable fiscal year,
so long as Executive is employed with the Company and in good standing throughout the full duration of that fiscal year. Such bonus payment, if any, will however be paid to Executive at the time all other Company bonuses are paid for such fiscal year. |
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(iii) In addition to any incentive compensation the Executive may receive in accordance with Section 2(b), on the Election Date Executive will receive a grant from the Company of such number of shares of the Company’s restricted stock equating to, on the date of
grant, $1,000,000, which restricted stock shall vest 50% per year from the date of grant. |
(c) Employment Relationship. Except during any vacation period and reasonable periods of absence due to sickness, personal injury or other disability throughout
the Term, Executive shall devote her full working time and attention during normal business hours to performing her services and duties hereunder to the best of her abilities and utilizing all of her skills, experience and knowledge to advance the business and interests of the Company in a manner consistent with the professional duties and responsibilities of her position. Accordingly, during the Term and any Restricted Period, Executive shall not, directly or indirectly, engage in or participate in the operation
or management of, or render any services to, any Company Competitors. Notwithstanding the foregoing to the contrary, Executive shall not be prevented from investing and managing her assets in such form or manner as will not unreasonably interfere with the services to be rendered by Executive hereunder, or from acting as a director, trustee, officer of, or on a committee of, or a consultant to, any other firm, trust or corporation or deliver lectures, fulfill speaking engagements or teach or coach at
educational institutions whether or not for compensation where such positions do not unreasonably interfere with the services to be rendered by Executive hereunder and where the business of such firm, trust or corporation is not in competition with the Company’s (or any of the Company’s affiliates) business. Executive further agrees that she will not, directly or indirectly, engage or participate in any activities at any time during such employment which conflict with or could reasonably
be considered to conflict with the interests of the Company in any way. Furthermore, Executive will not, nor will any family member of Executive, related to Executive by blood, marriage or adoption, maintain any ownership interest whatsoever in any supplier, agent, vendor, independent contractor, professional organization or consultant working for or on behalf of the Company, nor will any of the aforementioned parties maintain any employment
relationship with any supplier, agent, vendor, independent contractor, professional organization or consultant working for or on the behalf of the Company.
(d)Location of Employment. During the Term, Executive’s principal place of employment shall be located at the Company’s principal executive offices, wherever located as designated from time to time.
(e) Acceptance of Employment. Executive hereby accepts employment with the Company on the terms and in the manner set forth in this Agreement.
3. Term. Executive’s employment hereunder shall be for the
Term, unless this Agreement is terminated in accordance with the terms and conditions contained in Section 8, or amended by written agreement signed by the parties hereto prior to the end of the Term. Executive agrees that the covenants set forth in Section 6 and all other provisions of this Agreement related to the enforcement thereof, shall continue throughout the Term, surviving any termination of Executive’s employment hereunder for any reason. In the event this Agreement terminates at the
culmination of the Term with no further action by either party hereto, then that shall be considered a termination of employment in accordance with Section 8.4 of this Agreement.
4. Benefits.
4.1. Benefits. In addition to the payments required by Paragraphs 2(a) and 2(b) of this Agreement,
to be paid to the Executive during the Term, the Executive shall also continue to:
(a) be eligible to participate, on the same basis and to the same extent as other key executive executives of the Company, in all executive fringe benefits plans presently in effect and/or hereafter maintained or created by the Company;
(b) be eligible to participate in medical, dental, short and/or long-term disability, life and accidental death and dismemberment insurance plans that may be provided by the Company for its key executive Executives in accordance with
the provisions of any such plans;
(c) be entitled to sick leave and sick pay in accordance with any Company policy and practice that may be applicable, from time to time, to key executive Executives; and
(d) be eligible to participate in any pension plan, including the Company’s Supplemental Executive Retirement Plan, and 401(k) plan and other retirement income benefit plans presently in effect and/or hereafter maintained or created
by the Company.
4.2. Automobile Allowance. Company shall provide Executive with an automobile allowance of $8,500 per year, payable monthly. The Company, in its discretion, may increase such automobile allowance from time to time. Such allowance shall cover any leasing
expenses, gas, maintenance and insurance, all of which shall be Executive’s sole responsibility.
4.3. Vacation. Executive shall be entitled to four (4) weeks of paid vacation per calendar year. Such vacation shall be taken during a period or periods during each such year as shall be consistent
with Executive’s duties and responsibilities and shall be consistent with the Company’s vacation schedule and policies for senior officers in effect at the time.
4.4. Expenses. Pursuant to the Company’s customary policies in force at the time of payment, Executive shall be reimbursed, against presentation of vouchers or receipts therefore, for all expenses
properly incurred by Executive on the Company’s behalf in the performance of Executive’s duties hereunder, and which expenses are in accordance with the Company’s expense reimbursement policy.
4.5. Exclusive Compensation. With respect of services rendered to the Company, Executive shall receive only the compensation set forth in this Section 4 and, if applicable, Section 9.
5. Ownership of Results and Proceeds of Employment: All results and proceeds
of Executive’s employment (“Work Product”) hereunder shall be considered “work made for hire” and shall be owned exclusively throughout the world by the Company (including all copyrights and patents therein and thereto, and all renewals and extensions thereof) in perpetuity (except with respect to patents or copyrights which shall be owned exclusively by Company for the duration of any applicable patent or copyright), free of any claims whatsoever by Executive or any other person.
Company shall have the sole and exclusive right to copyright or patent the Work Product and documentation thereto, or other reproductions embodying the Work Product thereof, and any other material capable of copyright and/or patent protection created in connection with the Work Product) in Company’s name, as the owner and author thereof, and to secure any and all registrations, renewals and extensions of such copyrights and patents in Company’s name or Executive’s name as permitted pursuant
to applicable statute. If Company shall be deemed not to be the owner or author of any of the aforementioned materials, this Agreement shall constitute an irrevocable transfer to Company of ownership of copyright and/or patent therein (and all renewals and extensions). Executive shall, upon Company’s request, execute and deliver to Company transfers of ownership of copyright (and all renewals and extensions) or patent, as the case may be, in such materials and any other documents as Company may
deem necessary or appropriate to vest in Company the rights granted to Company in this Agreement, and if Executive does not execute any such above described transfers as required hereunder then Executive hereby irrevocably appoints Company her attorney-in-fact for the purpose of executing those transfers of ownership and other documents in her name.
6. Certain Covenants of Executive: Without in any way limiting or waiving any right or remedy accorded to Company or any limitation
placed upon Executive by law, Executive agrees as follows:
(a) Acknowledgment; Trade Secrets; Competitive Activities. Executive understands and agrees that Company is engaged in the highly competitive business of specialty retail;
that the Company’s success is highly dependent upon the protection of Company’s trade secrets and Confidential Information; that Company has invested considerable resources of its time and money in developing its products, services, staff, good will, procedures, vendor relationships and vendor lists, techniques, training, manuals, records, documents, and other trade secrets and Confidential Information; and that upon and during employment under this agreement Company has provided and will provide
Executive access to and valuable knowledge regarding Company’s trade secrets and Confidential Information, creating a relationship of confidence and trust between Company and Executive. Executive acknowledges and agrees that the use of such trade secrets or Confidential Information, or of Executive’s expertise or leadership, for the benefit of any of the Company’s Competitors would be greatly harmful to Company, and that Company’s willingness to provide Executive access to its
trade secrets and Confidential Information is conditioned upon (i) the protection of Company’s trade secrets and Confidential Information for Company’s sole and exclusive benefit, (ii) the retention of Executive’s expertise and leadership during the Term and the Restricted Period, if applicable, for the sole and exclusive benefit of Company, and not for any Company Competitors, and (iii) the protection of Company against Executive’s use for the benefit of any Company Competitors of the
valuable skills Executive will acquire, develop and/or refine by virtue of employment with Company under this Agreement. Therefore, during the Term and the Restricted Period, if applicable, Executive shall not, without the prior written approval of the Company, directly or indirectly, within the United States, become an Executive or consultant or otherwise render services to, lend funds to, serve on the board of, invest in (other than as a 1% or less shareholder of a publicly-traded corporation) or guarantee
the debts of, any Company’s Competitors or any supplier, agent, vendor, independent contractor, professional organization or consultant working for or on the behalf of the Company. The Company shall in its reasonable discretion give Executive written approval to engage in such activities or render such services after termination of this Agreement if Executive and such prospective firm or business organization gives the Company written assurances,
satisfactory to the Company in its sole discretion, that the integrity of the Confidential Information, the Inventions and the good will of the Company and its Subsidiaries will not be jeopardized by such employment. Executive shall, during the Restricted Period, notify the Company of any change in address and identify each subsequent employment or business activity in which Executive shall engage during such Restricted Period, stating the name and address of the employer or business organization and
the nature of Executive’s position.
(b) Non-Solicitation of Company Employees. During the Restricted Period, if applicable, Executive shall not, without the prior written approval of the Company,
directly or indirectly solicit, raid, entice or induce any person who presently is an employee of the Company or any of its Subsidiaries, or, at any time during the six (6) months immediately prior to the date of termination of this Agreement, has been an employee of the Company or any of its Subsidiaries, to become employed by any third party.
(c) Agreement. Executive agrees that the covenants and confidentiality provisions set forth in this Agreement are reasonable in
scope, time, territory and type of activity and necessary for the protection of Company’s legitimate interests, and further agrees that the knowledge of Company’s Confidential Information and trade secrets to which she will gain access by virtue of employment under this Agreement, constitute good, sufficient and adequate consideration for the covenants and confidentiality provisions set forth in this Agreement.
(d) Cooperation. After the Election Date, Executive shall work cooperatively
and in good faith with the Company’s other Co-Chief Executive Officer in the best interests of the Company, its shareholders and its employees. Failure by Executive to abide by the terms of this section 6(d), which failure shall be determined in the sole judgment of the Board, may subject the Executive to termination of employment with the Company in accordance with Section 8.4 hereto.
7. Termination of Agreement. The Term shall continue as described in this Agreement unless (a) earlier amended in accordance with Section 3, or (b) terminated by reason of (i) Executive’s
discharge for Cause pursuant to Section 8.1, (ii) termination of this Agreement by Executive pursuant to Section 8.2, (iii) Executive’s death or Disability pursuant to Section 8.3, (iv) Executive’s discharge without Cause pursuant to Section 8.4, or (v) termination of this Agreement by Executive pursuant to Section 8.5.
8. Termination.
8.1. By Company for Cause. The Company may discharge Executive and terminate this Agreement for Cause. As used in this Section 8.1, “Cause” shall mean any one or more than one of the following:
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(a) |
Gross negligence or willful misconduct of Executive in the performance of her duties; |
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(b) |
Executive’s conviction of a felony, any crime of moral turpitude during her employment with the Company or any act of fraud or dishonesty; |
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(c) |
Willful failure to follow the instructions of the Chief Executive Officer or Board, or, after the Election Date, the Board, which instructions are material, legal, and not inconsistent with the duties assigned to Executive hereunder and which failure is not cured within fifteen (15) business days after written notice of such failure is delivered to Executive
by the Company with respect to failures which are curable, provided, however, that if such failure is not capable of being cured within fifteen (15) business days, the Company may terminate Executive immediately; or |
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Any breach of any of the material terms of this Agreement by Executive which is not cured within fifteen (15) business days after written notice of breach is delivered to Executive by the Company with respect to breaches which are curable, provided, however, that if such breach is not capable of being cured within fifteen (15) business days, the Company
may terminate Executive immediately. |
Upon discharge of Executive for Cause, the Company shall be relieved and discharged of all obligations to make payments to Executive which would otherwise be due under this Agreement except as to salary, benefits and bonuses earned for actual services rendered prior to the date of termination, and reimbursable expenses in accordance with
Section 4.5. In the event of the termination of this Agreement pursuant to Section 8.1, the Restricted Period shall apply to all appropriate provisions of this Agreement.
8.2. By Executive for Good Reason. Executive may terminate this Agreement for Good Reason. Good Reason shall mean the occurrence
of any of the following events:
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any breach of any of the material terms of this Agreement by the Company continuing for more than fifteen (15) days after written notice thereof from Executive that such breach will be grounds for termination for Good Reason; or |
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(b) |
without the consent of Executive, a material reduction in the authorities, powers, functions and/or duties attached to Executive’s position which reduction is not rescinded within fifteen (15) days after notice from Executive that such reduction will be grounds for termination for Good Reason; provided, however, that Executive shall deliver any such
notice of such material reduction within five (5) business days of her knowledge of the occurrence of such material reduction. |
In the event of the termination of this Agreement pursuant to Section 8.2, the Restricted Period shall not apply to the provisions of this Agreement.
8.3. On Executive’s Death or Disability. This Agreement shall terminate, and the Company shall be relieved and discharged of all obligations to make further payment to Executive after the date
of the death or Disability of Executive, except as to salary earned for actual services rendered prior to the date of the death or Disability of Executive, reimbursement of expenses, and a pro-rata portion of Executive’s Annual Bonus for the full applicable Fiscal Year calculated following such year and pro-rated for the number of days Executive was actually employed in such Fiscal Year. In the event of the termination of this Agreement pursuant to Section 8.3, the Restricted Period shall not
apply to the provisions of this Agreement.
8.4. By Company Without Cause. The Company may, on 90 days written notice to Executive, terminate this Agreement without Cause at any time during the Term. In the event of the termination of this Agreement pursuant to Section 8.4, the Restricted Period
shall apply to all appropriate provisions of this Agreement.
8.5. By Executive Without Good Reason. The Executive may, on 90 days written notice to the Company, terminate this Agreement at any time during the Term. In the event of a termination by Executive pursuant to this Section 8.5, the Company shall be relieved and
discharged of all obligations to make further payment to Executive after the effective date of termination, except as to salary earned for actual services rendered prior to such termination date and reimbursement of expenses under Section 4.4. All amounts payable pursuant to this Section 8.5 shall be paid to Executive in a single lump sum in cash not later than ten (10) days after the effective date of termination. In the event of the termination of this Agreement pursuant to Section 8.5, the Restricted
Period shall apply to all appropriate provisions of this Agreement.
9. Severance. Upon termination of employment pursuant to Sections 8.2 or 8.4 (but in any event not upon
termination of this Agreement pursuant to Sections 8.1, 8.3, 8.5 or upon expiration of this Agreement or otherwise), and so long as the Executive executes a release in the Company’s customary form and the Executive has not breached any of her representations or covenants set forth herein or therein, the Company shall pay to Executive:
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an amount equal to the greater of (x) the amount of Base Salary due and owing Executive through the expiration of the Term (such amount to be calculated based upon her then current Base Salary), and (y) one (1.25) times her then applicable Base Salary, and |
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an amount equal to a pro rata portion (based upon the portion of the Fiscal Year elapsed to the date of such termination) of the Annual Bonus which would have been payable to the Executive had Executive been employed by the Company under this Agreement for the entire Fiscal Year in which such termination occurs. |
All amounts payable pursuant to Section 9(a) shall be paid to Executive in a lump sum in cash, not later than ten (10) days after the date of termination of this Agreement. Amounts, if any, payable pursuant to Section 9(b) shall be paid to Executive in a lump sum in cash, simultaneously with the payment, if any, of Annual Bonus
to the Company’s other executives, for the applicable Fiscal Year in which this Agreement is terminated.
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Upon termination of this Agreement, Executive shall immediately deliver to the Company all procedural manuals, guides, specifications, formulas, plans, drawings, designs and similar materials, records, notebooks and similar repositories of or containing Confidential Information and Inventions, including all copies, then in Executive’s possession
or control, whether prepared by Executive or others, as well as all other Company property in Executive’s possession or control. |
10. No Other Contracts.
Executive represents and warrants that neither the execution and delivery of this Agreement by Executive nor the performance by Executive of Executive’s obligations hereunder, shall constitute a default under or a breach of the terms of any other agreement, indenture or contract to which Executive is a party
or by which Executive is bound, nor shall the execution and delivery of this Agreement by Executive or the performance of Executive’s duties and obligations hereunder give rise to any claim or charge against either Executive or the Company based upon any other contract, indenture or agreement to which Executive is a party or by which Executive is bound.
11. Notices.
Any notices or communication given by any party hereto to the other party shall be in writing and personally delivered or mailed by registered or certified mail, return receipt requested, postage prepaid at the following addresses:
If to the Company:
000 Xxxx 00xx Xxxxxx
00xx Xxxxx
Xxx Xxxx, Xxx Xxxx 00000
Attn: Xxxxxx X. Xxxxxx, General Counsel
If to the Executive:
Xxxxx Xxxxx
00 Xxxxxxxxx Xxxx
Xxxxxxxxxx, XX 00000
Mailed notices shall be deemed given when received. Any person entitled to receive notice may designate in writing, by notice to the others, such other address to which notices to such party shall thereafter be sent.
12. Indemnification and Insurance. Company shall indemnify Executive (and Executive’s legal representatives or other successors) to the fullest extent permitted by
the laws of the State of Delaware and the Company’s certificate of incorporation and by-laws, and Executive shall be entitled to the protection of any insurance policies Company may elect to maintain generally for the benefit of officers, against all costs, charges and expenses whatsoever incurred or sustained by Executive (or Executive’s legal representatives or other successors) in connection with any action, suit or proceeding to which Executive (or Executive’s legal representatives or other
successors) may be made a party by reason of Executive’s being or having been an officer or Executive of Company and its subsidiaries and affiliates. The Company covenants to maintain during the Term, Directors and Officers Insurance providing customary insurance coverage for a company of the size of the Company.
13. Miscellaneous.
13.1 Entire Agreement. This Agreement contains the entire understanding of the parties in respect of its subject matter hereof and supersedes the Prior Employment Agreement and all other oral and written
agreements and understandings between the parties with respect to the subject matter hereof.
13.2 Amendment; Waiver. This Agreement may not be amended, supplemented, canceled or discharged, except by written instrument executed by the Executive and the Company. No failure to exercise, and
no delay in exercising, any right, power or privilege hereunder shall operate as a waiver thereof. No waiver of any preceding breach of this Agreement shall operate as a waiver of a succeeding breach of this Agreement.
13.3 Binding Effect; Assignment. The rights and obligations of this Agreement shall bind and inure to the benefit of any successor or successors of the Company by reorganization, merger
or consolidation, or any assignee of all or substantially all of the Company’s business and properties; Executive’s rights or obligations under this Agreement may not be assigned by Executive.
13.4 Headings. The headings contained in this Agreement (except those in Section 1) are for reference purposes only and shall not affect the meaning or interpretation of this Agreement.
13.5 Governing Law; Interpretation. This Agreement shall by governed by and construed in accordance with the laws of the State of New York, without regard to conflicts of law doctrines.
Any claim, dispute or disagreement in respect of this Agreement may be brought only in the courts of the State of New York, in New York County or the federal courts within the State of New York and in New York County, which courts shall have exclusive jurisdiction thereof. Any process in any action or proceeding commenced in such courts may, among other methods, be served upon the parties hereto, as applicable, by delivering or mailing the same, via registered or certified mail, return receipt requested, addressed
to the Company or Executive, as applicable, at the addresses set forth herein, or such other address as may be designated in writing. Any such service by delivery or mail shall be deemed to have the same force and effect as personal service within the State of New York.
13.6 Further Assurances. The parties agree, at any time, and from time-to-time, to execute, acknowledge, deliver and perform, and/or cause to be executed, acknowledged, delivered and
performed, all such further acts, deeds, assignments, transfers, conveyances, powers of attorney and/or assurances as may be necessary, and/or proper to carry out the provisions and/or intent of this Agreement.
13.7 Severability. The parties acknowledge that the terms of this Agreement are fair and reasonable at the date signed by them. However, in light of the possibility of a change of
conditions or differing interpretations by a court of what is fair and reasonable, the parties stipulate as follows: if any one or more of the terms, provisions, covenants and restrictions of this Agreement shall be determined by a court of competent jurisdiction to be invalid, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions of this Agreement shall remain in full force and effect and shall in no way be affected, impaired or invalidated; further, if any one or more of
the provisions contained in this Agreement shall for any reason be determined by a court of competent jurisdiction to be excessively broad as to duration, geographical scope, activity or subject, it shall be construed, by limiting or reducing it, so as to be enforceable to the extent compatible with then applicable law.
13.8. Counterparts. This Agreement may be executed in two or more counterparts, each of which will be deemed an original.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the date and year above first written.
/s/ Xxxxx X. Xxxxx
_____________________________
Xxxxx X. Xxxxx
AEROPOSTALE, INC.
By: /s/ Xxxxxx
X. Xxxxxx .
Xxxxxx X. Xxxxxx
Chief Executive Officer
Exhibit A
Company Competitors*
American Eagle Outfitters Inc.
Abercrombie & Fitch Co.
Buckle Inc.
Xxxxxxxxx Xxxxx Holding Inc.
Children’s Place
Gap, Inc.
Hot Topic Inc.
Express Stores
The Gymboree Corporation
New York & Company Inc.
Pacific Sunwear of California Inc.
Tween Brands Inc.
Urban Outfitters Inc.
Wet Seal Inc.
Zumiez, Inc.
*Including all subsidiaries, related companies and affiliates of the companies listed on this
Exhibit A.
