Document:

exv10w89

Exhibit 10.89

THE TALBOTS, INC.

CHANGE IN CONTROL AGREEMENT

Gregory I. Poole

EVP/Chief Supply Chain Officer

c/o The Talbots, Inc.

One Talbots Drive

Hingham, Massachusetts 02043

Dear Greg:

     This agreement (the “Agreement”) reflects our mutual understanding regarding payments to be
made to, and benefits to be received by, you in the event your employment with The Talbots, Inc., a
Delaware corporation (including its subsidiaries, the “Company”), is terminated by the Company
within twelve (12) months following a Change in Control. This Agreement shall become effective on
your employment commencement date. The capitalized termed used in this Agreement that are not
otherwise defined herein shall have the meanings given to such terms in Appendix A hereto,
incorporated herein by this reference and hereby made a part hereof.

     1. Termination after Change In Control. In the event that the Company terminates your
employment Without Cause within twelve (12) months after the occurrence of a Change in Control,
then the following shall occur:

	 	(a)	 	The Company shall pay to you on the effective date of such termination: (i)
salary for services rendered up to and including the date of termination, (ii) any and
all compensation to which you may be entitled as of the date of termination pursuant to
The Talbots, Inc. 2003 Executive Stock Based Incentive Plan (the “Plan”) or any other
compensation or benefit plan to the extent permitted by such plans, and (iii)
reimbursement for outstanding ordinary and reasonable expenses incurred by you in
connection with the performance of your duties for the Company up to and including the
date on which your employment is terminated;
	 
	 	(b)	 	The Company shall pay to you, within thirty (30) days after the effective date
of such termination, an amount of severance pay equal to one times the sum of:

	 	(i)	 	your annual base salary at the rate in effect on the date of
such termination, and
	 
	 	(ii)	 	your “target” annual cash incentive bonus as then established
for you and determined in accordance with the applicable annual cash incentive
bonus

 

 

	 	 	 	arrangement in place from time to time (provided that the target annual cash
incentive bonus shall be no less than 75% of your annual base salary).

     You shall continue to participate, on the same terms and conditions, in any benefit programs
of the Company in which you participated immediately prior to such termination (including, without
limitation, as applicable, any disability insurance benefit program, any medical insurance program,
and dental insurance program, and any life insurance program) from time of such termination until
the earlier of: (i) the end of the one (1) year period beginning from the effective date of the
termination of your employment, or (ii) such time as you are eligible to be covered by a comparable
program of a subsequent employer. You hereby agree to notify the Company promptly if and when you
begin employment with another employer and if and when you become eligible to participate in any
pension or other benefit plans, programs or arrangements of another employer.

     2. Assignment. None of the parties hereto shall, without the consent of the other,
assign or transfer this Agreement or any rights or obligations hereunder. This Agreement and all
of the provisions hereof shall be binding upon, and inure to the benefit of, the parties hereto,
and their successors (including successors by merger, consolidation or similar transactions),
permitted assigns, executors, administrators, personal representatives, heirs and distributees.

     3. Miscellaneous.

     (a) Entire Agreement. This Agreement contains the entire understanding between and
among the parties hereto with respect to the subject matter hereof and supersedes any prior or
contemporaneous understandings and agreements, written or oral, between us respecting such subject
matter; provided however, that this Agreement shall not be construed to impair or otherwise
adversely affect the grant of any Award (as such term is defined in the Plan) hereafter made to you
under the Plan or the Restricted Stock Award Agreement, the Non-Qualified Stock Option Agreement,
the Severance Agreement, and the Offer Letter, each as effective as of an even date hereof between
Company and you and all of which remain in full force and effect. For as long as this Agreement
is in effect, to the degree there is any conflict between the severance payments and benefit
provisions to which you are then entitled under this Agreement and those of any other written
agreement which continues to be in effect between the Company and you, such conflict shall be
resolved by the Company in good faith by affording you the more favorable severance payments and
benefits contained in any such agreement. Notwithstanding the foregoing, nothing herein relieves
you from the obligation to comply with the restrictive covenants of all such agreements or from the
consequences of noncompliance therewith regardless under which agreement the severance payments
and/or severance benefits may be deemed to have been made. Furthermore, for purposes of
clarification only, if you receive severance pay and benefits under one agreement, you shall not be
entitled to severance pay or benefits under any other agreement, plan or arrangement.

     (b) Governing Law. This Agreement shall be governed by and construed in accordance
with the laws of The Commonwealth of Massachusetts applicable to contracts made and to be wholly
performed in that state.

 

 

     If this letter sets forth our agreement on the subject matter hereof, kindly sign, date and
return to The Talbots, Inc. the enclosed copy of this letter which will then constitute our binding
agreement on the subject.

	 	 	 	 	 
	 	Sincerely,

THE TALBOTS, INC.

 	 
	 	By:  	/s/ John Fiske, III
 	 
	 	 	John Fiske, III 	 
	 	 	Senior Vice President

Human Resources 	 
	 

	 	 	 	 	 
	Executive:

 	 	 
	/s/ Gregory I. Poole
 	 	 
	Name:  	Gregory I. Poole 	 	 
	Title:  	EVP/Chief Supply Chain Officer 	 	 
	Date:   	June 5, 2008 	 
	 

It is acknowledged by the parties hereto that this agreement is being re-executed solely to correct
a clerical error in paragraph 1(b)(ii) of the original Change in Control Agreement entered into by
Gregory I. Poole and the Company on June 5, 2008 (the “Original Agreement”), and this re-executed
agreement supersedes the Original Agreement.

	 	 	 	 	 	 	 
	Initial here:

	 	/s/ GP
	 	 
	 	Dated: 4/2/09
	 

	 	 	 	 	 	 
	 

	 	Gregory I. Poole	 	 	 	 
	 
	 	 	 	 	 	 
	Initial here:

	 	/s/ JF
	 	 
	 	Dated: 3/24/09
	 

	 	 	 	 	 	 
	 

	 	John Fiske, III, on behalf of the Company	 	 	 	 

 

Appendix A

     Definitions. As used in the Change in Control Agreement.

	 	(a)	 	“Change in Control” shall mean (i) the acquisition (including as a result of a
merger) by any “person” (as such term is used in Sections 3(a)(9), 13(d) and 14(d) of
the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or persons
“acting in concert” (which for purposes of this Agreement shall include two (2) or more
persons voting together on a consistent basis pursuant to an agreement or understanding
between them to act in concert and/or as a “group” within the meaning of Sections
13(d)(3) and 14(d)(2) of the Exchange Act), other than the Company or any of its
subsidiaries, and other than AEON (U.S.A.), Inc. or any of its subsidiaries or
“affiliates” (as such term is defined in Rule 12b-2 under the Exchange Act)
(collectively, an “Acquiring Person”), of beneficial ownership (within the meaning of
Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the
Company representing more than 25 percent of the combined voting power of the then
outstanding securities of the Company entitled to then vote generally in the election
of directors of the Company, and no other stockholder is the beneficial owner (within
the meaning of Rule 13d-3 under the Exchange Act), directly or indirectly, of a
percentage of such securities higher than that held by the Acquiring Person; or (ii)
individuals, who, as of the effective date of this Agreement (the “Effective Date”),
constitute the Board (the “Incumbent Board”) cease for any reason to constitute at
least a majority of the Board; provided that any individual becoming a director
subsequent to the Effective Date, whose election or nomination for election by the
Company’s stockholders was approved by a vote of at least two-thirds of the directors
then comprising the Incumbent Board shall be considered as though such individual were
a member of the Incumbent Board, but excluding as a member of the Incumbent Board, any
such individual whose initial assumption of office is in connection with an actual or
threatened election contest relating to the election of the directors of the Company
(as such terms are used in Rule 14a-11 of Regulation 14A under the Exchange Act) and
further excluding any individual who is an “affiliate”, “associate” (as such terms are
defined in Rule 12b-2 under the Exchange Act) or designee of an Acquiring Person having
or proposing to acquire beneficial ownership (within the meaning of Rule 13d-3 under
the Exchange Act), directly or indirectly, of securities of the Company representing
more than 10 percent of the combined voting power of the then outstanding securities of
the Company entitled to then vote generally in the election of directors of the
Company.
	 
	 	(b)	 	“Without Cause” shall mean termination by Talbots of your employment as a
result of an event or condition other than (i) your death, (ii) your inability
substantially to perform your employment duties as a result of physical or mental
illness or injury for a continuous period of at least six months (any dispute as to
your incapacities shall be resolved by an independent physician, reasonably acceptable
to you or your legal representative and the Company’s Board of Directors, whose
determination shall be final and binding upon you and the Company), (iii) any material
breach by you of this

 

	 	 	 	Agreement or any other agreement to which you and the Company are both parties (which is
not cured within 45 days following written notice from the Company), (iv) any act or
omission to act by you which may have a material and adverse effect on the Company’s
business or on your ability to perform services for the Company, including, without
limitation, the commission of any crime involving moral turpitude or any felony, or (v)
any material misconduct or material neglect of duties by you in connection with the
business or affairs of the Company.exv10w97

Exhibit 10.97

December 19, 2008

[Name]

[Title]

c/o The Talbots, Inc.

One Talbots Drive

Hingham, MA 02043

Re: CODE SECTION 409A AMENDMENT

Dear [Name],

     In order to comply with final regulations issued under Section 409A of the Internal Revenue
Code of 1986, as amended (the “Code”), you and The Talbots, Inc. (including its subsidiaries, the
“Company”) hereby agree that, notwithstanding anything to the contrary in any severance agreement
or severance arrangement between you and the Company (all collectively referred to herein as the
“agreements”), it is the intention of the parties that each of such agreements comply with Code
Section 409A, and any regulations or other guidance issued thereunder, and the agreements and the
payments of any benefits thereunder will be operated and administered accordingly. Specifically,
but not by limitation, you agree that if, at the time of termination of your employment, the
Company is considered to be publicly traded and you are considered to be a specified employee, as
defined in Code Section 409A (and as determined as of December 31 preceding your termination of
employment, unless your termination of employment occurs prior to April 1, in which case the
determination will be made as of the second preceding December 31), then some or all of such
payments to be made under any of such agreements as a result of your termination of employment will
be deferred for no more than six (6) months following such termination of employment, if and to the
extent the delay in such payments is necessary in order to comply with the requirements of Code
Section 409A after utilizing the short-term deferral and involuntary separation pay plan exemptions
(if applicable). Upon expiration of such six month period (or, if earlier, your death), any
payments so withheld will be distributed to you, with a payment of interest thereon credited at a
rate of prime plus 1% (with such prime rate to be determined as of the actual payment date). The
foregoing is hereby incorporated into and made a part of the agreements.

     [Name], kindly sign and return a copy of this agreement to my attention by December 31,
2008 to indicate your acceptance of the above.

Very truly yours,

	 	 	 	 	 	 	 	 	 
	THE TALBOTS, INC.	 	 	 	Accepted and agreed	 	 
	 

	 	 	 	 	 	this ___ day of December, 2008	 	 
	By:
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	Gary Osborne	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	Vice President, Human Resources
	 	 	 	[Name]	 	 
	 

	 	Services

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