exv10w1







Exhibit 10.1




IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE




	 	 	 	 	 
	 

	 	X	 	 
	 	 	 	 	 
	JOHN C. CAMPBELL,
	 	 	 	 
	 

	 	:	 	 
	Plaintiff,                    
	 	 	 	 
	 

	 	:
	 	C.A. No. 5199-VCS
	v.
	 	 	 	 
	 

	 	:	 	 
	THE TALBOTS, INC., AEON (U.S.A.), INC.,
	 	 	 	 
	BPW ACQUISITION CORP., PERELLA

	 	:	 	 
	WEINBERG PARTNERS LP, JOSEPH R.
	 	 	 	 
	PERELLA, GARY S. BARANCIK,

	 	:	 	 
	MICHAEL KRAMER, JOHN W. GLEESON,
	 	 	 	 
	TSUTOMU KAJITA, MOTOYA OKADA,

	 	:	 	 
	GARY
M. PFEIFFER, YOSHIHIRO SANO,
	 	 	 	 
	TRUDY F. SULLIVAN, SUSAN M. SWAIN,

	 	:	 	 
	and ISAO TSURUTA,
	 	 	 	 
	 

	 	:	 	 
	Defendants.                    
	 	 	 	 






STIPULATION




     The parties, by their undersigned counsel, hereby stipulate and agree as follows:



     1. Plaintiff’s pending motion for a preliminary injunction is withdrawn, without prejudice.



     2. In exchange for withdrawal of the motion for a preliminary injunction, defendants agree
that the following procedures will be implemented by The Talbots, Inc. (“Talbots”) and shall
remain in place until at least the 2013 Annual Meeting of Shareholders of Talbots, subject in all
cases other than (1) to the closing of the BPW merger and related transactions.



          a. The Talbots Board will not propose a certificate amendment to implement
a classified board.




          b. The Talbots Board will not propose a certificate amendment to eliminate
the right to act by consent or to require shareholder action by a supermajority or unanimous
written consent.







 









 








          c. The Talbots bylaws will be amended to limit the number of directors to
ten, a majority of which shall be independent.




          d. All directors of Talbots will stand for election at the 2010 Annual
Meeting.




          e. The proxy statement for the 2010 Annual Meeting will contain further
reasonable disclosures concerning the BPW/AEON transaction, as agreed upon with plaintiff,
and incorporate by reference prior disclosures.




          f. The Nominating and Corporate Governance Committee of the Talbots
Board shall review prior to the 2010 Annual Meeting, whether directors and committee chairmen
shall be rotated among standing committees such as Audit, Nominating and Corporate
Governance and Compensation, and add or substitute on these committees directors who are
newly appointed or elected as the board determines to be appropriate.




          g. The Talbots Board will maintain the separation between the positions of
Chairman of the Board and CEO, and will designate a lead director (who shall be an independent
director) to preside in the absence of the Chairman of the Board.




          h. Directors of Talbots will be required to own Talbots stock at a certain
value.




          i. There shall be no option or warrant repricing or exchange under Talbots’
equity incentive plans for employees and/or directors without stockholder approval.




          j. Section 2.6 of the Talbots bylaws will be amended to provide a majority of
the entire board constitutes a quorum and will delete from Section 2.7 the requirement for the
affirmative vote of a majority of the entire board for specified actions.




          k. Section 2.10 of the Talbots bylaws will be amended to require that director
stock options, restricted shares or units and other director equity incentive compensation must be
issued pursuant to a stockholder-approved plan.




          1. Talbots will send a Section 228 notice to stockholders substantially in the
form previously provided by plaintiff’s counsel.




     3. This Stipulation does not constitute dismissal, settlement or withdrawal of any of
plaintiff’s claims in the litigation.



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	PRICKETT,
JONES & ELLIOTT, P.A.

	 	SKADDEN, ARPS, SLATE, MEAGHER & FLOM, LLP	 	 
	 
	 	 	 	 
	/s/ Paul A. Fioravanti, Jr.
 

Michael Hanrahan (DE Bar No. 941)

	 	/s/ Paul J. Lockwood
 

Thomas J. Allingham II (DE Bar No. 476)
	 	 
	Elizabeth M. McGeever (DE Bar No. 2057)

	 	Paul J. Lockwood (DE Bar No. 3369)	 	 
	Paul A. Fioravanti, Jr. (DE Bar No. 3808)

	 	One Rodney Square	 	 
	Laina M. Herbert (DE Bar No. 4717)

	 	P.O. Box 636	 	 
	Kevin H. Davenport (DE Bar No. 5327)


1310 King Street

Wilmington, DE 19801

(302) 888-6500

	 	Wilmington, DE 19801

 (302) 651-3000


Attorneys for Defendants	 	 
	 

	 	AEON (U.S.A.), Inc., Tsutomu Kajita, Motoya	 	 
	Attorneys for Plaintiff

	 	Okada, Yoshihiro Sano and Isao Tsuruta	 	 
	 
	 	 	 	 
	RICHARDS, LAYTON & FINGER

	 	PAUL, WEISS, RIFKIND, WHARTON & GARRISON, LLP	 	 
	 
	 	 	 	 
	/s/ Anne C. Foster
 

Anne C. Foster (DE Bar No. 2513)

	 	/s/ Stephen P. Lamb
 

Stephen P. Lamb (DE Bar No. 2053)
	 	 
	One Rodney Square

	 	Brandywine Building	 	 
	Wilmington, DE 19801

	 	1000 N. West Street — Suite 1200	 	 
	(302) 651-7700


Attorneys for Defendant

Perella Weinberg Partners LP

	 	Wilmington, DE 19801

(302) 655-4410


Attorneys for Defendant

Trudy F. Sullivan	 	 
	 
	 	 	 	 
	POTTER, ANDERSON & CORROON, LLP

	 	ASHBY & GEDDES, P.A.	 	 
	 
	 	 	 	 
	/s/ Brian C. Ralston
 

Donald J. Wolfe, Jr. (DE Bar No. 285)

	 	/s/ Philip Trainer, Jr.
 

Philip Trainer, Jr. (DE Bar No. 2788)
	 	 
	Brian C. Ralston (DE Bar No. 3770)

	 	500 Delaware Avenue	 	 
	Hercules Plaza - 6th Floor

	 	P.O. Box 1150	 	 
	P.O. Box 951

	 	Wilmington, DE 19899	 	 
	Wilmington, DE 19899

	 	(302) 654-18888	 	 
	(302) 984-6000
	 	 	 	 
	 
	 	 	 	 
	Attorneys for Defendants

	 	Attorney for Defendant	 	 
	John W. Gleeson, Gary M. Pfeiffer, and

	 	The Talbots, Inc.	 	 
	Susan M. Swain
	 	 	 	 






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	MORRIS, NICHOLS, ARSHT & TUNNELL LLP
	 	 	 	 
	 
	 	 	 	 
	/s/ Jon E. Abramczyk
 

Jon E. Abramczyk (DE Bar No. 2432)

	 	 	 	 
	1201 North Market Street
	 	 	 	 
	P.O. Box 1347 
	 	 	 	 
	Wilmington, DE 19899 

(302) 658-9200
	 	 	 	 
	 
	 	 	 	 
	Attorneys for Defendants
	 	 	 	 
	BPW Acquisition Corp., Joseph R. Perella,
	 	 	 	 
	Gary S. Barancik and Michael Kramer
	 	 	 	 
	 
	 	 	 	 
	DATED: March 6, 2010
	 	 	 	 







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