Exhibit 10.3

 

THIRD AMENDMENT TO

EMPLOYMENT AGREEMENT

 

WHEREAS, Casual Male Retail Group, Inc., (formerly Designs, Inc., “CMRG”) and
Dennis R. Hernreich (“Executive”) entered into a certain Employment Agreement
dated as of August 14, 2000, as amended by Letter Agreement dated April 25, 2001
and by Second Amendment to Employment Agreement dated January 30, 2003
(hereinafter referred to as the “Agreement”); and

 

WHEREAS, Company and Executive wish to amend, modify and/or restate certain
terms, provisions, conditions, and covenants of the Agreement.

 

NOW, THEREFORE, in consideration of the foregoing, and of the promises,
covenants, conditions and agreements contained herein, and for One Dollar
($1.00) and for other good and valuable consideration, the receipt and
sufficiency of which is hereby expressly acknowledged, the Company and Executive
hereby agree to amend the Agreement as follows:

 

1.   Section 1 of the Agreement is hereby amended to acknowledge that the Board
of Directors has granted Executive the title of Executive Vice President, Chief
Operating Officer and Chief Financial Officer of the Company.

 

2.   Section 3(a) of the Agreement is hereby deleted in its entirety and the
following is hereby substituted in lieu thereof:

 

  “3.   COMPENSATION

 

(a) As compensation for the employment services to be rendered by the Executive
hereunder, the Company agrees to pay to Executive, and Executive agrees to
accept, payable in equal installments in accordance with Company practice, an
annual base salary of $393,750, effective as of July 1, 2003.”

 

3.   A new Section 8. (i) and 8. (j) shall be added as follows:

 

“8. (i) In the event Executive is terminated without justifiable cause (as
defined herein) within one (1) year after a Change of Control has occurred,
Executive shall receive in full satisfaction of any obligation relating to
Executive’s employment or the termination thereof the greater of: (a) the base
salary for the remaining term of this Agreement, or (b) an amount equal to the
current base salary for one (1) year. The Company must make a lump sum payment
of all money due and owing within fifteen (15) days of termination.

 

8. (j) For the purposes of the paragraph 8, “Change of Control” shall mean (i)
any sale of all or substantially all of the assets of the Company to any person
or group of related persons within the meaning of Section 13(d) of the
Securities Exchange Act of 1934, as amended (“Group”), (ii) any acquisition by
any person or Group of shares of capital stock of the Company representing more
than 50% of the aggregate voting power of the outstanding capital stock of the
Company entitled under ordinary circumstances to elect the Directors of the
Company (“Voting Stock”) or (iii) any replacement of a majority of the Board of
Directors of the Company over the twelve-month period following the

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acquisition of shares of the capital stock of the Company representing more than
10% of the Voting Stock by any person or Group which does not currently own more
than 10% of such Voting Stock (unless such replacement shall have been approved
by the vote of the majority of the Directors then in office who either were
members of the Board of Directors at the beginning of such twelve-month period
or whose elections as Directors was previously so approved).”

 

4.   Except as herein specifically modified and amended, all of the terms,
provisions, conditions, and covenants of the Agreement shall continue in full
force and effect and shall be deemed unchanged except to the extend modified and
amended herein.

 

IN WITNESS WHEREOF, the parties hereto have executed this Third Amendment to
Employment Agreement as a sealed instrument, in any number of counterpart
copies, each of which shall be deemed an original for all purposes, as of the
day and year first written below.

 

CASUAL MALE RETAIL GROUP, INC. (Company)

 

By:

 

/s/ David A. Levin

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July 9, 2003

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David A. Levin

 

Date

   

President and

       

Chief Executive Officer

   

By:

 

/s/ Arlene C. Feldman

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July 9, 2003

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Arlene C. Feldman

 

Date

   

Assistant Secretary

       

EXECUTIVE

       

/s/ Dennis R. Hernreich

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July 9, 2003

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Dennis R. Hernreich

 

Date