IN WHICH THE EMPLOYEE AND HIS
FAMILY CURRENTLY RESIDES. THE COMPANY AGREES THAT EMPLOYEE AND HIS FAMILY SHALL
BE PERMITTED TO CONTINUE TO RESIDE IN SUCH RESIDENCE AND THE COMPANY WILL
CONTINUE TO PAY THE COSTS ASSOCIATED WITH THE LEASE, INCLUDING UTILITIES
CHARGES, THROUGH JUNE 30, 2006. EMPLOYEE AND HIS FAMILY SHALL VACATE SUCH
PREMISES NOT LATER THAN JUNE 30, 2006. IN ADDITION, THE COMPANY AGREES THAT ANY
AMOUNTS PAID BY THE COMPANY PURSUANT TO THIS SECTION 3(B) THAT IS REPORTED AS
INCOME TO THE EMPLOYEE SHALL BE SUBJECT TO A GROSS UP OF FORTY (40%) PERCENT.
(C)
THE COMPANY AGREES TO REIMBURSE THE EMPLOYEE FOR ALL REASONABLE
COSTS INCURRED BY EMPLOYEE, UPON PRESENTATION OF SIGNED, ITEMIZED ACCOUNTS OR
RECEIPTS OF SUCH EXPENDITURES, FOR EMPLOYEE AND HIS FAMILY TO RELOCATE FROM
CALIFORNIA TO NEW YORK, WHICH AMOUNT SHALL NOT EXCEED TWENTY THOUSAND DOLLARS
($20,000), PROVIDED THAT EMPLOYEE AND HIS FAMILY RELOCATE TO NEW YORK NOT LATER
THAN APRIL 28, 2007.
(D)
THE COMPANY AGREES THAT, THROUGH JUNE 30, 2006, EMPLOYEE'S
PERSONAL MAIL, EMAILS AND TELEPHONE CALLS SHALL BE RE-DIRECTED TO A MAIL, EMAIL
ADDRESS AND TELEPHONE NUMBER AS INSTRUCTED BY EMPLOYEE.
(E)
THE COMPANY AGREES THAT EMPLOYEE WILL BE ENTITLED TO A LIFETIME
EMPLOYEE DISCOUNT AT ALL CHILDREN'S PLACE AND DISNEY STORES.
4.
RETURN OF COMPANY PROPERTY. THE COMPANY AGREES THAT EMPLOYEE
SHALL RETAIN HIS BLACKBERRY AND LAPTOP COMPUTER, PROVIDED THAT THEY SHALL EACH
BE SCRUBBED OF ANY COMPANY INFORMATION. THE EMPLOYEE AGREES TO RETURN TO THE
COMPANY ALL OTHER COMPANY PROPERTY, INCLUDING KEYS, LOCKS, DOCUMENTS, RECORDS,
IDENTIFICATION CARDS, COMPUTER EQUIPMENT, CREDIT CARDS, AND OTHER MATERIALS AND
PROPERTY OF ANY TYPE WHATSOEVER THAT IS THE PROPERTY OF THE COMPANY. SUCH
PROPERTY SHALL BE RETURNED NOT LATER THAN THE SEPARATION DATE.
5.
REMOVAL FROM COMPANY POSITIONS AND INDEMNIFICATION. THE COMPANY
AGREES THAT AS OF THE SEPARATION DATE THE EMPLOYEE SHALL BE REMOVED FROM ALL
POSITIONS HELD ON BEHALF OF THE COMPANY, ITS PARENTS, SUBSIDIARIES AND
AFFILIATED COMPANIES AND ANY OTHER RELATED ENTITIES INCLUDING, BUT NOT LIMITED
TO, OFFICER, DIRECTOR, AGENT, REPRESENTATIVE, TRUSTEE, ADMINISTRATOR, FIDUCIARY
AND SIGNATORY. IN ADDITION, WITH RESPECT TO ALL ACTS OR OMISSIONS OF EMPLOYEE
WHICH OCCURRED PRIOR TO THE SEPARATION DATE, THE COMPANY AGREES TO CONTINUE TO
INDEMNIFY THE EMPLOYEE TO THE SAME EXTENT THAT THE EMPLOYEE WAS INDEMNIFIED
PRIOR TO THE SEPARATION DATE AND THAT THE EMPLOYEE SHALL RETAIN THE BENEFIT OF
ALL DIRECTORS AND OFFICER LIABILITY INSURANCE AND COVERAGE MAINTAINED BY
EMPLOYER, IN ACCORDANCE WITH THE TERMS OF SUCH POLICY.
6.
CONSULTATION WITH COUNSEL AND VOLUNTARINESS OF AGREEMENT.
(A)
THE EMPLOYEE ACKNOWLEDGES THAT THE COMPANY HAS ADVISED THE
EMPLOYEE IN WRITING TO CONSULT WITH AN ATTORNEY PRIOR TO EXECUTING THIS
AGREEMENT. THE EMPLOYEE FURTHER ACKNOWLEDGES THAT, TO THE EXTENT DESIRED, THE
EMPLOYEE HAS CONSULTED WITH THE EMPLOYEE'S OWN ATTORNEY IN REVIEWING THIS
AGREEMENT, THAT THE EMPLOYEE HAS CAREFULLY READ AND
2
FULLY UNDERSTANDS ALL THE PROVISIONS OF THIS AGREEMENT, AND THAT THE EMPLOYEE IS
VOLUNTARILY ENTERING INTO THIS AGREEMENT.
(B)
THE EMPLOYEE FURTHER ACKNOWLEDGES THAT