Exhibit 10.1

 

[g99431kci001.jpg]

 

456 North Fifth Street, Philadelphia, PA  19123

Tel. (215) 873-2200; Fax (215) 873-0869; Website www.motherswork.com

 

 

MARCH 28, 2008

 

 

Dan W. Matthias

Via Hand Delivery

 

Rebecca C. Matthias

Via Hand Delivery

Wachovia Bank, National Association

227 West Trade Street ·Suite 1550

Charlotte, NC 28202-1675

Attn: Dawn S. Puky, Vice President

 

 

Re:      Permitted Rabbi Trust Withdrawal

 

Dear Dan, Rebecca and Ms. Puky:

 

Reference is hereby made to the Supplemental Retirement Agreement between the
Company and Dan Matthias dated March 2, 2007 (the “DM SERP”), the Supplemental
Retirement Agreement between the Company and Rebecca Matthias dated March 2,
2007 (the “RM SERP”), the related Trust Agreement for Supplemental Retirement
Agreements between the Company and Wachovia Bank (the “Trustee”) dated April 27,
2007 (the “Rabbi Trust Agreement”) and the related grantor trust created by the
Rabbi Trust Agreement (the “Rabbi Trust”).

 

Notwithstanding any contrary terms of the DM SERP, the RM SERP or the Rabbi
Trust Agreement, this letter memorializes your consent and agreement to (i) the
distribution by the Trustee to the Company, upon the Company’s direction on or
prior to September 30, 2008, of up to $1,000,000 from the Trust, and (ii) the
use by the Company of any amount so distributed for whatever purpose the Company
chooses.

 

This letter does not relieve the Company of its obligation under Section 4(b) of
each of the DM SERP and the RM SERP to fund the Trust (based on benefits then
accrued) within 60 days following the end of each fiscal year of the Company. 
Accordingly, the Company will be required to contribute an amount equal to
(i) any amount distributed to it from the Trust pursuant to this letter, plus
(ii) any other amounts required to be contributed to the Trust in the ordinary
course (e.g., amounts in respect of SERP benefits accrued during the 2008 fiscal
year), no later than November 29,  2008.

 

 

[g99431kci002.gif]

[g99431kci003.gif]

[g99431kci004.gif]

[g99431kci005.gif]

 

--------------------------------------------------------------------------------

 

This letter, except as to the approval of actions contemplated hereby, is in no
way to be treated as otherwise rendering the Trust revocable nor authorizing the
use of Trust assets for any purpose other than as described in the Rabbi Trust
Agreement.

 

For avoidance of doubt, Mr. and Mrs. Matthias’ execution of this letter
evidences their specific consent to actions of the Trustee in following the
directions of the Company to distribute to the Company Rabbi Trust assets. 
Mr. and Mrs. Matthias, their beneficiaries, and the Company completely release
the Trustee (including its successors, officers, employees, attorneys and
agents) from any and all claims, demands, causes of action, obligations,
controversies and liabilities of any kind, in law, equity or otherwise, arising
out of the Trustee’s distribution of Rabbi Trust assets to the Company in
accordance with this letter.

 

To acknowledge your consent to and agreement with the foregoing, please execute
and date this letter in the spaces provided below and return the executed copies
to me.  This letter may be signed in multiple counterparts, each of which will
be deemed an original, and all of which together will constitute a single
instrument.

 

 

Sincerely,

 

 

 

MOTHERS WORK, INC.

 

 

 

By:

     /s/ Ron Masciantonio

 

 

Ron Masciantonio

 

 

Vice President and General Counsel

 

--------------------------------------------------------------------------------

 

Acknowledged and agreed on this
28th day of March, 2008:

 

/s/ Dan W. Matthias

 

 

Dan W. Matthias

 

 

 

 

 

COMMONWEALTH OF PENNSYLVANIA

:

 

: SS.

COUNTY OF PHILADELPHIA

:

 

 

On this 28th day of March, 2008, before me personally appeared Dan W. Matthias,
known to me or satisfactorily proven to be the person described in and who
executed this letter agreement, and acknowledged that he executed the same as
his free act and deed.

 

IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal.

 

 

 

/s/ Paula Kurtz

 

Notary Public

 

My Commission Expires: 9/1/2011

 

--------------------------------------------------------------------------------

 

Acknowledged and agreed on this
28th day of March, 2008:

 

/s/ Rebecca C. Matthias

 

Rebecca C. Matthias

 

 

COMMONWEALTH OF PENNSYLVANIA

:

 

: SS.

COUNTY OF PHILADELPHIA

:

 

 

On this 28th day of March, 2008, before me personally appeared Rebecca C.
Matthias, known to me or satisfactorily proven to be the person described in and
who executed this letter agreement, and acknowledged that she executed the same
as her free act and deed.

 

IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal.

 

 

 

/s/ Paula Kurtz

 

Notary Public

 

My Commission Expires: 9/1/2011

 

--------------------------------------------------------------------------------

 

Acknowledged and agreed on this
28th day of March, 2008:

 

Wachovia Bank, National Association

 

By:

/s/ Dawn S. Puky

 

 

Title:

Vice President

 

 

--------------------------------------------------------------------------------