AMERICAN EAGLE OUTFITTERS, INC. RSU Confidentiality, Non-Solicitation, Non- Competition And Intellectual Property Agreement
Exhibit 10.25
AMERICAN EAGLE OUTFITTERS, INC.
RSU Confidentiality, Non-Solicitation, Non- Competition And
Intellectual Property Agreement
Intellectual Property Agreement
As an officer of American Eagle Outfitters, Inc. or one of its subsidiaries or affiliates
(collectively, the “Company”), the undersigned is a participant in the Company Long Term Incentive
Compensation Plan (the “Old LTICP”) and is eligible to participate in the new Company Long Term
Restricted Stock Unit Incentive Plan (the “RSU Plan”) and has access to or may develop trade
secrets, intellectual property, and other confidential or proprietary information (“Confidential
Information”) of the Company.
NOW, THEREFORE, in recognition of the highly competitive nature of the business conducted by
the Company and in exchange for and in consideration of:
| • | my continued employment with the Company; | ||
| • | the benefit of being able as a “Contract Participant” to receive the distribution of my full account balance under the LTICP in two annual installments; and | ||
| • | to be eligible to receive a pro rated award under the RSU Plan after termination of my employment, based on actual days worked and performance goals being met for the full period, but not an amount above the “target” award level; |
I agree as follows:
1. I will at all times during and after my employment with the Company faithfully hold the
Company’s Confidential Information in the strictest confidence, and I will use my best efforts and
diligence to guard against its disclosure to anyone other than as required in the performance of my
duties to the Company. I will not use Confidential Information for my own personal benefit or for
the benefit of any competitor or other person. I understand that Confidential Information includes
all information and materials relating to Intellectual Property, as defined below, the Company’s
trade secrets and all information relating to the Company that the Company does not make available
to the public. By way of example, Confidential Information includes information about the
Company’s products, designs, processes, systems, marketing, promotional plans, technical
procedures, strategies, costs, financial information, and many other types of information and
materials. Upon termination of my employment with the Company, regardless of the reason for such
termination, I will return to the Company all computers, data storage devices, documents and other
materials of any kind that contain Confidential Information. I will not use any confidential
information of any third party, including any prior employer, in breach of a legal obligation to
that third party in the course of my work for the Company.
2. If I decide to resign my employment with the Company, I will provide the Company with
thirty (30) days prior written notice.
3. If I leave the Company for any reason whatsoever, then for a period of eighteen (18) months
after my separation from the Company, I will not directly or indirectly solicit, induce or attempt
to influence any associate to leave the employment of the Company, nor will I in any way assist
anyone else in doing so.
4. I agree that all inventions, designs and ideas conceived, produced, created, or reduced to
practice, either solely or jointly with others, during my employment with the Company, including
those developed on my own time, which relate to or are useful in the Company’s business
(“Intellectual Property”) shall be owned solely by the Company. I understand that whether in
preliminary or final form, such Intellectual Property includes, for example, all ideas, inventions,
discoveries, designs, innovations, improvements, trade secrets, and other intellectual property.
All Intellectual Property is either work made for hire for the Company within the meaning of the U.
S. Copyright Act, or, if such Intellectual Property is determined not to be work made for hire,
then I irrevocably assign all right, title and interest in and to the Intellectual Property to the
Company, including all copyrights, patents, and/or trademarks. I will, without any additional
consideration, execute all documents and take all other actions needed to convey my complete
ownership of the Intellectual Property to the Company so that the Company may own and protect such
Intellectual Property and obtain patent, copyright and trademark registrations for it. I agree
that the Company may alter or modify the Intellectual Property at the Company’s sole discretion,
and I waive all right to claim or disclaim authorship. I represent and warrant that any
Intellectual Property that I assign to the Company, except as otherwise disclosed in writing at the
time of assignment, will be my sole, exclusive, original work. I have not previously invented any
Intellectual Property or I have advised the Company in writing of any prior inventions or ideas.
5. If I leave the Company for any reason whatsoever, then for a period of twelve (12)
months after my separation from the Company, I will not, directly or indirectly, work for or
contribute to the efforts of any business organization or entity that competes, or plans to
compete, with the Company or its products and services. I understand that the Company at its
discretion may waive this provision or shorten the twelve month period by giving me a written
waiver. I also understand that the Company shall continue to pay me my base salary during the
period I am required not to work for a competitor, except that in no case will the Company pay me
my base salary for any portion of the period that I am employed or work for someone other than a
competitor.
6. I understand and agree that if I breach any provision of this Agreement as determined in
the sole discretion of the Company, then the Company may refrain from paying to me my account
balance under the LTICP or the RS Plan, all of which I will forfeit in that event.
7. I understand and agree that the Company has the right to suspend or terminate the RS Plan
at any time in the future, provided that such suspension or termination does not decrease the value
of my then-current account balance.
8. I understand and agree that the Company is entitled, in addition to other remedies, to
obtain an injunction against any potential or actual violation of this Agreement. This Agreement
is in addition to and does not replace any other agreement between me and the Company relating to
the subject matter hereof, and I acknowledge that the Company is entitled to enforce any such other
agreement in addition to the provisions of this Agreement.
9. Notwithstanding the foregoing, if I am a “specified employee” as defined in Section 409A of
the Internal Revenue Code of 1986, as amended (the “Code”) and the Company determines that any
amounts to be paid to me under this Agreement could be subject to penalty taxes under Section 409A
of the Code, then the Company shall not commence payment of such amounts until the earlier of (a)
the date that is six months after my Termination Date or (b) the date of my death. Any amount that
otherwise would have been payable but for the delay described above shall be aggregated and paid
with the first payment under this Section 9. For purposes of this Agreement, ‘Termination Date’
shall mean the date on which a ‘separation from service’ occurs, as defined in Treasury Regulation
Section 1.409A-1(h) and the guidance promulgated there under.
10. This Agreement cannot be changed in any way unless the Company agrees in writing. This
Agreement will be governed by and interpreted in accordance with Pennsylvania law.
| American Eagle Outfitters, Inc. | ||||||||||
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