Exhibit
10.16  EMPLOYMENT
AGREEMENT  This Employment Agreement
(Agreement) is made and entered into as of the 21st day of October, 2009
between Cache, Inc., a Florida corporation, having its principal place of
business at 1440 Broadway, New York, New York 10036 (Cache or the Company),
and Rabia Farhang (Farhang or Executive).  WHEREAS,the Company wishes to employ Farhang as
Executive Vice President and General Merchandise Manager and Farhang wishes to
be employed on the terms and conditions set forth herein.  NOW,
THEREFORE, in
consideration of the mutual covenants and promises contained herein, the
parties hereto each intending to be legally bound, agree as follows:  1.0Employment  Cache
hereby employs Farhang as Executive Vice President General Merchandise Manager
and Farhang hereby accepts such employment. 
This Agreement shall commence on November 16, 2009 (the Effective
Date) for a term of 3 years expiring on November 15, 2012 (the Expiration
Date), subject to termination as hereinafter provided.  2.0Duties and
Responsibilities  2.1During Executives employment, Executive
shall perform all duties and accept all responsibilities as may be assigned
from time to time by the Board of Directors (the Board)


and/or
the Chief Executive Officer of Cache and that are consistent with the duties
and responsibilities of the Executive Vice President and/or General Merchandise
Manager.  2.2Executive agrees that she will diligently
devote her entire business skill, time and effort to the performance of her
duties on behalf of Cache.  Executive
agrees that she will not, alone or as a member of a partnership or as an
officer, director, employee or agent of any other person, firm or business
organization, engage in any other business activities or pursuits requiring her
personal services that might conflict with her duties hereunder.  2.3Executive represents and warrants that
she is not subject or party to any employment agreement, non-competition
covenant, non-disclosure agreement or other agreement, covenant, understanding
or restriction that would prohibit Executive from executing this Agreement and
performing fully her duties and responsibilities hereunder, or which would in
any manner, directly or indirectly, limit or affect the duties and responsibilities
which may now or in the future be assigned to Executive by Cache.  2.4Executive agrees that at all times she
will strictly adhere to and perform all her duties in accordance with
applicable laws, rules and regulations, and in accordance with policies
and procedures of Cache that are in effect from time to time.  3.0Compensation and Benefits  3.1Salary.During the
initial year of Executives employment under this Agreement November 16,
2009 through November 15, 2010, Cache shall pay Executive an annual base
salary of $400,000, less withholdings and other applicable payroll deductions
as required by law, payable in equal installments at such times as Cache
customarily pays its other senior executive


officers, but no less often than monthly.  During the term of this Agreement, the
Compensation Committee of the Board and the Chief Executive Officer will review
the Executives base salary on an annual basis and make adjustments thereto
subject to the performance of the Executive, the operating results of the
Company, the competitive compensation landscape and such other factors as are
determined to be relevant by the Compensation Committee and the Chief Executive
Officer.  Such reviews will be completed
prior to February 1 of the applicable year and any adjustment (if any)
will be effective as of February 1 of such year.  In addition to base salary, the Executive
will be eligible to participate in performance based incentive bonus plans for
senior executive officers as approved by the Compensation Committee of the
Board and the Chief Executive Officer, as and to the extent provided for in
Sections 3.2 and 3.4 below.  Any
compensation increase pursuant to this Section 3.1 shall become a
permanent part of Executives annual base salary.  3.2Benefits.Executive
will be eligible to receive the health care and other benefits that Cache makes
available to its senior executive officers, including term life insurance equal
to three times the Executives annual salary, provided that Executive meets the
eligibility requirements for such plans or programs.  In addition, Executive will continue to be
eligible to participate in Caches stock option plans and will be eligible to
participate in any other executive bonus or incentive plan established by
Cache, in each case in accordance with the terms of those plans, and nothing in
this Agreement is intended to modify or discontinue Executives participation
in any plan in which she participates as contemplated by Section 3.7
hereof.  3.3Business Expenses.Executive shall be reimbursed for the reasonable business expenses
incurred on Caches behalf in connection with the performance of her services


hereunder upon presentation of an itemized account and
written proof of such expenses, in accordance with the policies established by
Cache.  3.4Bonus.  The Executive
shall be entitled to such performance based bonuses as the Compensation
Committee of the Board and the Chief Executive Officer may from time to time
determine in their discretion (Bonuses).  3.5Repayment of Bonuses. 
If the audited annual financial statements of Cache in respect of any
year during the term of this Agreement are subsequently restated due to a
material error or fraud that, in either such case, results in a material
restatement of such financial statements, if so requested by the Board,
Executive shall repay to the Company all or part of any Bonus received in
respect of such year.  3.6Payment of Relocation Expenses. 
Cache shall pay the reasonable out of pocket relocation and moving expenses
of the Executive and her family to the New York metropolitan region, up to
$20,000 in the aggregate.  Prior to any
such reimbursement, the Executive shall furnish Cache with an itemized account
and written proof of such expenses.  3.7Restricted Stock Grants. 
On the Effective Date of this Agreement, the Executive shall be awarded
20,000 shares of restricted common stock under Caches Amended and Restated
2008 Stock Option and Performance Incentive Plan (the Plan).  Such shares shall vest in equal installments
on the first, second and third anniversary of the grant date.  The other terms and conditions applicable to
such grant shall be as set forth in the Plan and any award agreement
thereunder.


3.8Stock Option Grants. 
On the Effective Date of this Agreement, the Executive shall be awarded
20,000 common stock options under Caches Amended and Restated 2008 Stock
Option and Performance Incentive Plan (the Plan).  Such options shall vest in equal installments
on the first, second and third anniversary of the grant date.  The Stock Option Exercise price will be equal
to the closing price of the Companys common stock on the first day of
employment of the executive. The other terms and conditions applicable to such
grant shall be as set forth in the Plan and any award agreement thereunder  3.9Sign on Bonus. 
The Executive shall receive a one-time payment of $150,000, payable with
the executives first biweekly pay check. The one-time bonus is subject to
partial pro-rata repayment, within the first year of the executives
employment, should the executive no longer be employed pursuant to sections 4.1
or 4.2 or 4.5 of this agreement.  The
repayment portion shall be calculated based upon the percentage of weeks in the
year remaining till the executive would have reached their one year anniversary
of employment.  4.0Termination Without
Compensation  4.1Mutual Agreement. 
Executives employment, and the parties respective obligations
hereunder, may be terminated by mutual written agreement, with at least 30 days
prior written notice of the termination date agreed to by the parties.  4.2Resignation. 
Executive shall submit written notice of her resignation at least 60
days prior to a specified termination date.  4.3Partial/Total Disability.  
If Executive is unable to perform her duties and responsibilities to the
full extent required hereunder, either with or without reasonable


accommodation, by reason of physical or psychiatric
illness, injury or incapacity for six (6) continuous months or nine (9) months
in a twelve (12) month period, Cache may terminate Executives employment by
written notice of the termination date and Cache shall have no further
liability or obligation to Executive hereunder, except for any unpaid salary
and benefits accrued to the date of termination.  During any period of disability, Executive
will receive her salary in effect at the time of disability, less any amounts
received as disability benefits through any applicable disability program,
Cache benefit plan or the Social Security Administration.  In the event of any dispute under this Section 4.3,
Executive shall submit to a physical and/or psychiatric examination by a
licensed physician mutually satisfactory to Cache and the Executive.  The cost of such examination will be paid by
Cache and the findings of such physician shall be determinative.  4.4Death.   If Executive
dies, this Agreement shall terminate and thereafter Cache shall not have any
further liability or obligation to Executive, her executors, administrators,
heirs, assigns or any other person claiming under or through her, except for
unpaid salary and benefits accrued to the date of her death.  4.5Cause.   Cache may at
any time terminate Executives employment for cause and thereafter Cache
shall have no further liability or obligation to Executive.  For purposes of this Agreement, cause shall
mean (a) Executives conviction, guilty plea or plea of nolo contendere
with respect to (i) any felony or (ii) any misdemeanor involving
fraud, theft, dishonesty, wrongful taking of property, embezzlement, bribery,
forgery or extortion; (b) Executives failure (other than by reason of
illness, injury or incapacity) to perform or fulfill any of Executives
material duties, responsibilities or obligations; (c) Executives material
neglect of Caches business (other than by reason of illness, injury or
incapacity); (d) Executives


fraudulent, unlawful, grossly negligent or willful
misconduct in connection with Executives duties; (e) Executives material
breach of this Agreement or any material policy or procedure of Cache; or (f) misappropriation
of funds by Executive.  4.6Further Obligations.  
In the event that Executives employment is terminated for any of the
reasons set forth in this Section 4 (a Termination without Compensation),
Cache will have no further liability or obligation to Executive, except for any
unpaid salary or benefits accrued as of the date of termination.  5.0Termination With
Compensation  5.1At any time prior to a Change of
Ownership or Control of Cache (as defined herein), Cache shall have the right
to terminate Executives employment at any time without cause by giving
Executive 30 days notice of the termination date.  In the event that Executives employment is
terminated pursuant to this Section 5.1, Cache shall continue to pay
Executive the salary then in effect for a period of twelve months or the
balance of the term of this Agreement, whichever period is shorter, less
withholdings and other applicable payroll deductions as required by law, in
accordance with Caches normal pay cycle. 
However, Executive shall not be entitled to any compensation under this Section 5.1
unless Executive executes and delivers to Cache after notice of termination a
general release acceptable to Cache by which Executive releases Cache from any
obligations and liabilities of any type whatsoever, except for Caches
obligation to provide the salary specified herein.  The parties acknowledge that the salary to be
provided under this Section 5.1 is in consideration for the
above-referenced release.  Upon any
termination under this Section 5.1, Cache shall have no further obligation
to Executive, her executor, administrators, heirs, assigns or any other persons
claiming under or through her other


than to pay to Executive the salary specified in this Section 5.1
in exchange for the above-referenced release. 
Executive agrees that any compensation she is to receive pursuant to
this Section 5.1 shall be reduced by any compensation Executive receives in
connection with any employment position Executive assumes subsequent to her
termination date.  Executive further
agrees that, immediately upon her acceptance of any such employment position,
she will notify Cache, in writing, of her employment position and the
compensation associated with that position so that Cache may reduce the
payments to be made to Executive, in accordance with this Section 5.1.  5.2(a)  If, during Executives
employment with Cache, there is a Change of Ownership or Control of Cache,
Cache may terminate Executives employment by providing written notice at least
30 days prior to the termination date. 
Upon the occurrence of a Change of Ownership or Control followed at any
time during the term of this Agreement by the termination of Executives
employment, other than for Partial/Total Disability, Death or Cause, as
defined, respectively, in Sections 4.3, 4.4 and 4.5 of this Agreement, the
provisions of Section 5.2(b) of this Agreement shall apply.  (b)In the event that Executives employment
is terminated following a Change of Ownership or Control, Executive shall
receive a one time payment equal to 12 months of Executives then in effect
base salary, less withholdings and other applicable payroll deductions as
required by law. However,
Executive shall not be entitled to any compensation under this Section 5.2
unless Executive executes and delivers to Cache after notice of termination or
notice of resignation, whichever is applicable, a general release in form
acceptable to Cache by which Executive releases Cache from any obligations and
liabilities of any type whatsoever, except for Caches obligation to provide
the salary specified herein.  The parties
acknowledge that the


salary to be provided under this Section 5.2 is
in consideration for the above-referenced release.  Upon any termination under this Section 5.2,
Cache shall have no further obligation to Executive, her executor,
administrators, heirs, assigns or any other persons claiming under or through
her other than to pay to Executive the salary specified in this Section 5.2
in exchange for the above-referenced release.  (c) Subject to the last sentence of this
paragraph, for purposes of this Section 5.2, Change of Ownership or
Control shall mean the occurrence of one or more of the following three
events:  (i) any person becomes a
beneficial owner (as such term is defined in Rule 13d-3 promulgated under
the Securities Exchange Act of 1934, as amended) directly or indirectly of
securities representing more than 50% of the total number of votes that may be
cast for the election of directors of Cache; (ii) within two years after a
merger, consolidation, liquidation or sale of assets involving Cache, or a
contested election of a Cache director, or any combination of the foregoing,
the individuals who were directors of Cache immediately prior thereto shall
cease to constitute a majority of the Board of Directors; or (iii) within
two years after a tender offer or exchange offer for voting securities of
Cache, the individuals who were directors of Cache immediately prior thereto
shall cease to constitute a majority of the Board of Directors. Notwithstanding
anything to the contrary herein, (x) the acquisition of securities of
Cache by Andrew M. Saul, any spouse or lineal descendant of Andrew M. Saul, any
trust for the benefit of such persons, or any affiliate or associate of Andrew
M. Saul or any such persons (individually and collectively, the Saul Group)
or (y) a change in the composition of the Board of Directors following a merger,
consolidation, liquidation, sale of assets, tender offer or exchange offer
after which members of the Saul Group shall individually or collectively own in
the aggregate, directly or indirectly, securities representing more than 50% of
the total number of votes that


may be cast for the election of directors of Cache,
shall not constitute a Change of Ownership or Control.  5.3In the event that Executive dies during
the payment continuation period referred to in Section 5.1, Cache will
have no further liability or obligation to Executive, her executor,
administrators, heirs, assigns or any other persons claiming under or through
her as of the date of Executives death.  6.0Return of Property  Immediately
upon termination of Executives employment, Executive shall deliver to Cache
all copies of data and information in any way associated with Cache or the
performance of Executives duties including, but not limited to, all
Confidential Information (as defined in Section 7.1), documents,
correspondence, notebooks, reports, computer programs, and all other materials
and copies thereof (including computer discs and other electronic media)
relating in any way to the business of Cache. 
Immediately upon termination of Executives employment, Executive shall
deliver to Cache all tangible property belonging or licensed to Cache,
including, without limitation cell phones, facsimile machines, computers,
pagers, and credit cards.  7.0Confidentiality;
Non-Compete  7.1           Confidentiality
and Nondisclosure of Information. 
During Executives tenure with Cache, she will have access to
information relating to the business of Cache, including writings, equipment,
processes, drawings, reports, manuals, invention records, financial
information, business plans, customer lists, the identity of or other facts
relating to prospective customers, inventory lists, arrangements with suppliers
and customers, computer programs, or


other material embodying trade secrets, customer or
product information or technical or business information of Cache (all of
which, excluding information and materials which are or become generally
available to the public other than as a result of disclosure by Executive or
her representatives, hereinafter are referred to as Confidential Information).  Executive acknowledges that the Confidential
Information constitutes a valuable, special and unique asset of Cache as to
which Cache has the right to retain and hereby does retain all of its
proprietary interests.  However, access
to and knowledge of the Confidential Information is essential to the
performance of Executives duties.  In
recognition of this fact, Executive agrees that she will not, during or after
her employment with Cache, disclose any of the Confidential Information to any
person, firm, corporation, association or other entity for any reason or
purpose whatsoever (except as necessary in the performance of her duties during
her employment with Cache) or make use of any of the Confidential Information
for her purposes or those of another.  In
the event Executive is required or requested by legal process to disclose any
of the Confidential Information, Executive shall provide Cache with prompt
written notice of such requirement or request so that Cache may, at its own
expense, seek an appropriate protective order or waive compliance with the
provisions of this Section 7.1 to the extent required to comply with the
request or order.  If a protective order
is not obtained and/or if reasonable proof thereof is not given by Cache to
Executive by written notice and received by Executive no later than one (1) business
day preceding the date on which such disclosure is required, Executive may
disclose all or a portion of the Confidential Information to the extent
required by the Court or permitted by the waiver, or both.  7.2Non-compete.Executive hereby covenants and agrees
that, during the term of her employment as set forth in this Agreement and
either for one (1) year following Termination


without Compensation, or during the period Executive receives
compensation pursuant to Section 5.1, Executive will not, directly or
indirectly, engage in competition with Cache. 
The word competition as used herein shall mean (a) an engagement
as independent contractor or employee, or other arrangement with any Restricted
Entity (hereinafter defined) pursuant to which Executive renders any services
to, or directly or indirectly owns, any Restricted Entity; provided, however,
that ownership by Executive of in the aggregate less than five (5%) percent of
the outstanding shares of capital stock of a corporation with a class of equity
securities held of record by more than five hundred (500) persons entitled to
vote for the election of directors shall not be deemed to constitute competition.  For purposes of this Agreement, a Restricted
Entity shall mean any entity which operates specialty clothing retail
stores on a national basis (i.e., in more than 10 states) with its principal
place of business located in any state in which Cache then has a retail store.  7.3Non-Solicitation. 
Executive hereby covenants and agrees that she shall not, directly or
indirectly, for herself or on behalf of any other person, during the term
hereof or for two (2) years following termination of employment for any
reason, solicit, take away, attempt to take away, or otherwise interfere with
the written agreements and/or existing relationship of Cache with any of its
employees, agents or independent contractors.


8.0Cooperation by Executive  Executive agrees, during and after her employment with
Cache, to cooperate with Cache in any legal proceedings or with respect to any
regulatory matters relating to the period of Executives employment with Cache,
provided that any reasonable travel, room and board expenses which Executive
incurs in rendering such cooperation will be reimbursed by Cache.  9.0No Disparagement  9.1Executive agrees, both during and after
Executives employment with Cache, not to publish or communicate any
Disparaging (as defined below) remarks, comments or statements regarding Cache
or any of Caches officers, or any member of Caches Board.  9.2Cache agrees, both during and after
Executives employment with Cache, not to publish or communicate any
Disparaging remarks, comments or statements regarding Executive for any reason
whatsoever.  9.3Disparaging remarks, comments or
statements are those that impugn the character, honesty, integrity, morality,
business acumen, abilities or any aspect of the operations or business of the
individual or entity being disparaged.  10.0Survival/Injunctive Relief  10.1Executive acknowledges that damage to
Cache from Executives breach of this Agreement cannot be remedied solely by
the recovery of damages, and agrees that in the event of any breach or
threatened breach of any of the provisions of Sections 6, 7 and 9 of this


Agreement, Cache may pursue both injunctive relief and any and all
other remedies available at law or in equity for any such breach or threatened
breach, including the recovery of damages.  10.2The provisions of Sections 3.5,
6, 7, 8, 9, 10, 11 and 12 shall survive the termination of this Agreement,
and of Executives employment.  11.0Assignability; Binding
Effect  The terms and provisions of this Agreement shall be
binding upon and inure to the benefit of Cache and its successors and
assigns.  This Agreement calls for the
provision of personal services and, accordingly, shall not be assignable by
Executive.  12.0Miscellaneous  12.1This Agreement supersedes all prior
agreements between the parties.  None of
the terms of this Agreement shall be deemed to be waived or modified, nor shall
this Agreement be renewed, or extended, except by an express agreement in
writing, signed by Executive and the Chairman of the Compensation Committee of
Caches Board of Directors or the Chief Executive Officer, or his or her
designee.  There are no representations,
promises, warranties, covenants or undertakings, other than those contained in
this Agreement, which represents the entire understanding of the parties.  The failure of a party hereto to enforce, or
the delay by a party hereto to enforce, any of its rights under this Agreement
shall not be construed as a waiver of any such partys rights hereunder.  Paragraph headings contained in this
Agreement have been inserted for convenience of reference only, are not to be
considered a part of this Agreement and shall not affect the interpretation of
any provision hereof.  In the event any
of the provisions of this Agreement, or any portion thereof, shall be held to
be invalid or unenforceable, the validity


and enforceability of the remaining provisions hereof shall not be
affected or impaired but shall remain in full force and effect.  This Agreement shall be governed and
construed in accordance with the laws of the State of New York.  Any action brought in connection herewith
shall be brought in the federal or New York State courts sitting in the City of
New York, County of New York.  12.2Notices. 
Any notices under this Agreement shall be in writing and shall be given
by personal delivery, facsimile, by certified or registered letter, return
receipt requested, or a nationally-recognized overnight delivery service; and
shall be deemed given when personally delivered, upon actual receipt of the
facsimile or certified or registered letter, or on the business day next
following delivery to a nationally-recognized overnight delivery service at the
addresses set forth below in this Agreement or to such other address or
addresses as either party shall have specified in writing to the other party
hereto.  If to Cache:  Chief
Executive Officer 1440 Broadway New York, NY 10018  If to Executive, to her at
such address as she shall have provided to Cache.   IN WITNESS WHEREOF, the undersigned, intending to be legally bound, has
executed this Agreement on the date first above written.   CACHE,
INC.  By:
  /s/ THOMAS E. REINCKENS
  
  /s/ RABIA FARHANGThomas E. Reinckens
  
  Rabia Farhang