Document:

Form of the Stock Option Agreement

 Exhibit 10.2 
 STOCK OPTION AGREEMENT 
 This Stock Option Agreement (this
“Agreement”) is made and entered into as of March 28, 2011 by and between The Wet Seal, Inc., Delaware corporation (the “Company”), and Ken Seipel (“Participant”).
Capitalized terms not defined herein will have the meaning ascribed to them in the Company’s Amended and Restated 2005 Stock Incentive Plan, as amended and/or restated from time to time (the “Plan”). 

 

			
	 Total Option Shares:
	  	400,000
		
	 Exercise Price Per Share:
	  	$[            ]
		
	 Date of Grant:
	  	March 28, 2011
		
	 Expiration Date:
	  	March 28, 2018
		
	 Type of Stock Option
	  	
	 (Check One):
	  	 ̈ Incentive Stock Option, to the maximum extent permissible
		  	x Nonqualified Stock Option

 1. Grant of Option. 
 1.1 The Company hereby grants to Participant
an option (this “Option”) to purchase the total number of shares of Common Stock of the Company set forth above as Total Option Shares (the “Shares”) at the Exercise Price Per Share, subject to all of
the terms and conditions of this Agreement and the Plan. 
 1.2 The grant of this Option to Participant is made in consideration
of the services to be rendered to the Company by Participant, pursuant to that certain Employment Agreement, dated as of March 21, 2011, between the Company and Participant (the “Employment Agreement”). The Company
acknowledges that this Option is granted pursuant to the authority of the Board. This Option and the Shares shall be subject to the terms and conditions of the Plan; provided that to the extent there is conflict between the Plan and this Agreement,
this Agreement shall control. 
 2. Exercise Period. 

2.1. This Option will become vested and exercisable with respect to (a) One Hundred Thousand (100,000) of
the Shares on each of the next two (2) anniversaries of the Date of Grant and (b) Two Hundred Thousand (200,000) of the Shares on the third (3rd) anniversary of the Date of Grant until this Option is one hundred percent (100%) vested, subject to
Participant’s Continuous Service as Chief Operating Officer with the Company on each of those vesting dates. Except as provided in this Agreement, unvested Shares will not be exercisable on or after Participant’s termination of Continuous
Service as Chief Operating Officer (“Termination Date”) and will immediately terminate on such Termination Date. 

 2.2. This Option will expire on the Expiration Date set forth above or earlier as provided
in this Agreement or the Plan. 
 3. Termination of Continuous Service. 

3.1. If Participant’s Continuous Service as Chief Operating Officer is terminated, this Option will remain exercisable as follows:

 (a) If Participant’s termination of Continuous Service as Chief Operating Officer is due to death, all
unvested Shares that would have vested on the next vesting date immediately following the Termination Date will vest and be exercisable as of the Termination Date and all remaining unvested Shares will terminate and all vested Shares will be
exercisable by Participant’s designated beneficiary, or if none, the person(s) to whom such Participant’s rights under this Option are transferred by will or the laws of descent and distribution for one (1) year following the
Termination Date (but in no event beyond the term of this Option). 
 (b) If Participant’s termination of
Continuous Service as Chief Operating Officer is due to Disability (as defined in the Employment Agreement), all unvested Shares that would have vested on the next vesting date immediately following the Termination Date will vest and be exercisable
as of the Termination Date and all remaining unvested Shares will terminate and all vested Shares will be exercisable by Participant for one (1) year following the Termination Date (but in no event beyond the term of this Option). 

(c) If Participant’s termination of Continuous Service as Chief Operating Officer is due to termination for Cause (as
defined in the Employment Agreement) or voluntary termination without Good Reason (as defined in the Employment Agreement) by Participant, the Shares will terminate on the Termination Date, regardless of whether the Shares were then exercisable.

 (d) If Participant’s termination of Continuous Service as Chief Operating Officer is due to termination
without Cause (as defined in the Employment Agreement) or termination for Good Reason (as defined in the Employment Agreement) by Participant, all unvested Shares that would have vested on the next vesting date immediately following the Termination
Date will vest and be exercisable as of the Termination Date and all remaining unvested Shares will terminate on the Termination Date. All Shares (to the extent exercisable as of the Termination Date, including previously vested Shares and Shares
vested pursuant to this Section 3.1(d)), will be exercisable for a period of six (6) months following such Termination Date (but in no event beyond the term of this Option) and will thereafter terminate. Participant’s status as Chief
Operating Officer will not be considered terminated in the case of a leave of absence agreed to in writing by the Company (including but not limited to military and sick leave); provided that, such leave is for a period of not more than three
(3) months or reemployment upon expiration of such leave is guaranteed by contract or statute. 
 3.2. Nothing in the Plan
or this Agreement will confer on Participant any right to the continuation of service with the Company, or any of its Subsidiaries, or interfere in any way with the right of the Company or its Subsidiaries to terminate his Continuous Service as
Chief Operating Officer at any time. 

 4. Manner of Exercise. 

4.1. Participant (or in the case of exercise after Participant’s death or Disability, Participant’s executor, administrator,
heir or legatee, as the case may be) may exercise this Option by giving written notice of exercise to the Company in a form approved by the Company specifying the number of Shares to be purchased. Such notice must be accompanied by the payment in
full of the aggregate exercise price for the Shares to be acquired. The aggregate exercise price for the Shares may be paid by in the following manner: (a) cash or certified or bank check, (b) surrender of Common Stock held by Participant
for at least six (6) months prior to exercise (or such longer or shorter period as may be required to avoid a charge to earnings for financial accounting purposes) or the attestation of ownership of such shares, in either case, if so permitted
by the Company, (c) if established by the Company, through a “same day sale” commitment from Participant and a broker-dealer selected by the Company that is a member of the National Association of Securities Dealers (an
“NASD Dealer”) whereby Participant irrevocably elects to exercise this Option and to sell a portion of the Shares so purchased sufficient to pay for the total exercise price and whereby the NASD Dealer irrevocably commits
upon receipt of such Shares to forward the total exercise price directly to the Company, or (d) by any combination of the foregoing or such other manner as determined by the Board, and, in all instances, to the extent permitted by applicable
law. Participant’s subsequent transfer or disposition of any Shares acquired upon exercise of an Option will be subject to any Federal and state laws then applicable, specifically securities law, and the terms and conditions of the Plan.

 4.2. Upon (a) exercise of a Nonqualified Stock Option or (b) under any other circumstances determined by the
Committee in its sole discretion, the Company will have the right to require any Participant, and such Participant by accepting the Awards granted under the Plan agrees, to pay to the Company the amount of any federal, state, local income taxes or
other taxes incurred by reason of the exercise of this Option granted hereunder that the Company may be required to withhold with respect thereto. In the event of clauses (a) or (b), Participant will pay to the Company such amount as the
Company deems necessary to satisfy its minimum tax withholding obligation and such payment will be made: (i) in cash, (ii) to the extent authorized by the Compensation Committee of the Board (the “Committee”),
having the Company retain shares which would otherwise be delivered upon exercise of this Option, (iii) to the extent authorized by the Committee, delivering or attesting to ownership of the Shares owned by the holder of this Option for at
least six (6) months prior to the exercise of this Option (or such longer or shorter period as may be required to avoid a change to earnings for financial accounting purposes), or (iv) any combination of any such methods. For purposes
hereof, the Shares will be valued at Fair Market Value. 
 5. Issuance of Shares. Except as otherwise provided in the Plan or this
Agreement, as promptly as practicable after receipt of such written notification of exercise and full payment of the exercise price and any required income tax withholding, the Company will issue or transfer to Participant the number of Shares with
respect to which this Option have been so exercised (less any Shares withheld in satisfaction of tax withholding obligations, if any), and will deliver to Participant a certificate or certificates therefor or in book entry form, registered in
Participant’s name. 

 6. Company; Participant. 

6.1. The term “Company” as used in this Agreement with reference to Continuous Service as Chief Operating Officer
will include the Company and its Subsidiaries, if any, as appropriate. 
 6.2. Whenever the word
“Participant” is used in any provision of this Agreement under circumstances where the provision should logically be construed to apply to the beneficiaries, the executors, the administrators, or the person or persons to whom
this Option may be transferred by will or by the laws of descent and distribution, the word “Participant” will be deemed to include such person or persons. 
 7. Non-Transferability. This Option is not transferable by Participant otherwise than to a designated beneficiary upon death or by will or the laws of descent and distribution, and is
exercisable during Participant’s lifetime only by her. No assignment or transfer of this Option, or of the rights represented thereby, whether voluntary or involuntary, by operation of law or otherwise (except to a designated beneficiary, upon
death, by will or the laws of descent and distribution), will vest in the assignee or transferee any interest or right herein whatsoever, but immediately upon such assignment or transfer this Option will terminate and become of no further effect.

 8. Rights as Stockholder. Participant or a transferee of this Option will have no rights as stockholder with respect to any
Shares until he or she will have become the holder of record of such Shares, and no adjustment will be made for dividends or distributions or other rights in respect of such Shares for which the record date is prior to the date upon which he or she
will become the holder of record thereof. 
 9. Adjustments. The Shares into which this Option is exercisable may be adjusted or
terminated in any manner as contemplated by the Plan. 
 10. Change of Control. Notwithstanding the terms of the Plan to the
contrary, to the extent Participant is terminated without Cause by the Company or its successor or Participant terminates his employment for Good Reason within one hundred and eighty (180) days after a Change of Control, Participant shall be
entitled to the greater of: 
 (a) the vesting in full of his then unvested Shares that would have vested on the
vesting date immediately following the Termination Date, and 
 (b) (i) if the consideration per share
payable to the Company’s stockholders at the closing of the Change of Control transaction equals or exceeds $5.52, the vesting of thirty-three and one-third percent (33 1/3%) of all the remaining unvested Shares, (ii) if the consideration
per share payable to the Company’s stockholders at the closing of the Change of Control transaction equals or exceeds $6.96, the vesting of sixty-six and two-thirds percent (66 2/3%) of all the remaining unvested Shares; or (iii) if the
consideration per share payable to the Company’s stockholders at the closing of the Change of Control transaction equals or exceeds $8.40, the vesting of all the remaining unvested Shares. 

 11. Registration. The Company hereby agrees to register the Shares as promptly as practicable
after the granting of this Option on Registration Statements on Form S-8 and Form S-3, as the case may be (or any successor to Form S-8 or Form S-3, as applicable), or to the extent not available, on any similar short-form registration statement.

 12. Compliance with Law. Notwithstanding any of the provisions hereof, Participant hereby agrees that he will not exercise this
Option, and that the Company will not be obligated to issue or transfer any Shares to Participant hereunder, if the exercise hereof or the issuance or transfer of such Shares will constitute a violation by Participant or the Company of any
provisions of any law or regulation of any governmental authority. Any determination in this connection by the Committee will be final, binding and conclusive. The Company shall take all appropriate steps, including, to the extent necessary, the
filing of an appropriate registration statement at its sole expense, such that Participant may sell the Shares upon the lapse of the restrictions set forth herein, subject to the Company’s insider trading policies. 

13. Notices. 

13.1 All notices, requests, demands or other communications that are required or may be given under this Agreement shall be in writing
and shall be given by personal delivery, by certified or registered United States mail (postage prepaid, return receipt requested), by a nationally recognized overnight delivery service for next day delivery, or by facsimile transmission, as follows
(or to such other address as any party may give in a notice given in accordance with the provisions hereof): 
 If to the
Company, 
 Vice President, Human Resources 
 The Wet Seal, Inc. 
 26972 Burbank 

Foothill Ranch, CA 92610 
 Facsimile No.: (949) 699-4722 
 If to Participant, at the most recent address
listed in the Company’s records. 
 13.2 All notices, requests or other communications will be effective and deemed given
only as follows: (a) if given by personal delivery, upon such personal delivery, (b) if sent by certified or registered mail, on the fifth business day after being deposited in the United States mail, (c) if sent for next day delivery
by overnight delivery service, on the date of delivery as confirmed by written confirmation of delivery, (d) if sent by facsimile, upon the transmitter’s confirmation of receipt of such facsimile transmission, except that if such
confirmation is received after 5:00 p.m. (in the recipient’s time zone) on a business day, or is received on a day that is not a business day, then such notice, request or communication will not be deemed effective or given until the next
succeeding business day. Notices, requests and other communications sent in any other manner, including by electronic mail, will not be effective. 

 14. Binding Effect. Subject to Section 7 hereof, this Agreement will be binding upon the
heirs, executors, administrators and successors of the parties hereto. 
 15. Governing Law. This Agreement will be construed and
interpreted in accordance with the laws of the State of California without regard to its conflict of law principles. 
 16. Plan.
The terms and provisions of the Plan are incorporated herein by reference, and Participant hereby acknowledges that a copy of the Plan is attached hereto as Exhibit A. 
 17. Successors and Assigns. The Company may assign any of its rights under this Agreement. This Agreement will be binding upon and inure to the benefit of the successors and assigns of the
Company. Subject to the restrictions on transfer set forth herein, this Agreement will be binding upon Participant and Participant’s beneficiaries, executors, administrators and the person or persons to whom this Agreement may be transferred by
will or the laws of descent or distribution. 
 18. Counterparts. This Agreement may be executed in counterparts, each of
which shall be deemed an original but all of which together will constitute one and the same instrument. 
 (signature page
follows) 
 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first above written.

  

			
	THE WET SEAL, INC.
		
	By:	 	 
		 	Name:
		 	Title:

  

	
	PARTICIPANT
	
	  
	Ken Seipel

 EXHIBIT A

 THE WET SEAL, INC. 
 AMENDED AND RESTATED 2005 STOCK INCENTIVE PLANForm of the Performance Share and Restricted Share Award Agreement

 Exhibit 10.3 
 PERFORMANCE SHARE AND RESTRICTED SHARE AWARD AGREEMENT 
 THIS PERFORMANCE
SHARE AND RESTRICTED SHARE AWARD AGREEMENT (this “Agreement”), made as of [            ], 2011 (the “Grant Date”), by
and between The Wet Seal, Inc. (the “Company”) and Ken Seipel (“Participant”), evidences the granting by the Company of stock awards of Performance Shares (as defined below) and Restricted Shares (as
defined below) to Participant and Participant’s acceptance of the Performance Shares and the Restricted Shares. All capitalized terms not defined herein shall have the meaning ascribed to them in The Wet Seal, Inc. Amended and Restated 2005
Stock Incentive Plan, as amended and/or restated from time to time (the “Plan”). 
 The Company and
Participant agree as follows: 
 1. Performance Shares and Restricted Shares Grants. 

1.1 The Company hereby grants, as of the Grant Date, to Participant, in the aggregate, an award of Four Hundred Thousand
(400,000) shares of the Company’s Class A common stock, $0.10 par value per share (the “Common Stock”), which shall be subject to the performance-based and time-based vesting terms and conditions set forth in
Section 2.1 (the “Performance Shares”). 
 1.2 The Company hereby grants to Participant as of the
Grant Date, in the aggregate, an award of Two Hundred Fifty Thousand (250,000) shares of Common Stock, all of which shall be subject to the time-based vesting terms and conditions set forth in Section 2.2 (the “Restricted
Shares”). 
 1.3 (a) The Performance Shares and the Restricted Shares (collectively, the “Award
Shares”) shall be evidenced by book-entry registration with the Company’s transfer agent, subject to such stop-transfer orders and other terms deemed appropriate by the Compensation Committee of the Board of Directors of the
Company (the “Committee”) to reflect the restrictions applicable to such Award Shares. Notwithstanding the foregoing, if any certificate is issued in respect of the Award Shares at the sole discretion of the Committee, such
certificate shall be registered in the name of Participant and shall bear an appropriate legend referring to the terms, conditions and restrictions applicable to such Award Shares, substantially in the following form: 

“THE TRANSFERABILITY OF THIS CERTIFICATE AND THE CLASS A COMMON STOCK REPRESENTED HEREBY ARE SUBJECT TO THE TERMS AND
CONDITIONS (INCLUDING FORFEITURE) CONTAINED IN THE AWARD AGREEMENT DATED AS OF [            ], 2011, ENTERED INTO BETWEEN THE REGISTERED OWNER AND THE WET SEAL, INC.”

 (b) If a certificate is issued with respect to any Award Shares, the Committee may require that the
certificate evidencing such Award Shares be held in custody by the 

 
Company until the restrictions thereon shall have lapsed and that Participant shall have delivered a stock power, endorsed in blank, relating to the Award Shares covered by such Award. At the
expiration of the restrictions, the Company shall instruct the transfer agent to release the Award Shares from the restrictions applicable to such Award Shares, subject to the terms of the Plan and applicable law or, in the event that a certificate
has been issued, redeliver to Participant (or his legal representative, beneficiary or heir) share certificates for the shares deposited with it without any legend, except as otherwise provided by the Plan, this Agreement or applicable law.

 (c) During the period following the grant of the respective Award Shares hereunder, Participant shall have the
right to receive dividends on and to vote the respective Award Shares while they are subject to restriction, except as otherwise provided in the Plan. 
 (d) If the Award Shares are forfeited, in whole or in part, Participant will assign, transfer and deliver any evidence of the Award Shares to the Company and cooperate with the Company to reflect such
forfeiture. By accepting these Award Shares, Participant acknowledges that the Company does not have an adequate remedy in damages for the breach by Participant of the conditions and covenants set forth in this Agreement and agrees that the Company
is entitled to and may obtain an order or a decree of specific performance against Participant issued by any court having jurisdiction. 
 1.4 (a) The issuance of the Award Shares is made in consideration of the services rendered to the Company by Participant as Chief Operating Officer of the Company, pursuant to that certain Employment
Agreement, dated as of March 21, 2011, between the Company and Participant (the “Employment Agreement”). The Company acknowledges that the Award Shares are issued pursuant to the authority of the Board. 

(b) The Award Shares shall be subject to the terms and conditions of the Plan, provided that to the extent there is
conflict between the Plan and this Agreement, this Agreement shall control. 
 1.5 Except as provided in the Plan or this
Agreement, prior to vesting as provided in Section 2 of this Agreement, the Award Shares will be forfeited by Participant and all of Participant’s rights to such Award Shares shall immediately terminate without any payment or consideration
by the Company, in the event of any sale, assignment, transfer, hypothecation, pledge or other alienation of such Award Shares made or attempted, whether voluntary or involuntary, and if involuntary whether by process of law in any civil or criminal
suit, action or proceeding, whether in the nature of an insolvency or bankruptcy proceeding or otherwise. 
 2. Vesting.

 2.1 Vesting of Performance Shares; Acceleration. 

(a) (i) On or following the first anniversary of March 28, 2011 (the “Vesting Commencement
Date”), One Hundred Thirty-Three Thousand Three Hundred Thirty-Three (133,333) Performance Shares shall vest and all forfeiture conditions thereon shall lapse if, at any time on or following the Vesting Commencement Date through
the third anniversary thereof, 

  
 2 

 
the thirty (30)-day volume weighted average share price of the Company’s Class A Common Stock (the “30-Day Average”) equals or exceeds $4.60 per share (the
“Tranche 1 Share Appreciation Target”). 
 (ii) On or following the second anniversary of
the Vesting Commencement Date, One Hundred Thirty-Three Thousand Three Hundred Thirty-Three (133,333) Performance Shares shall vest and all forfeiture conditions thereon shall lapse if, at any time on or following the first anniversary of the
Vesting Commencement Date through the third anniversary thereof, the 30-Day Average equals or exceeds $5.80 per share (the “Tranche 2 Share Appreciation Target”). 

(iii) On or following the third anniversary of the Vesting Commencement Date, One Hundred Thirty-Three Thousand Three
Hundred Thirty-Four (133,334) Performance Shares shall vest and all forfeiture conditions thereon shall lapse if, at any time on or following the second anniversary of the Vesting Commencement Date through the third anniversary thereof, the
30-Day Average equals or exceeds $7.00 per share (the “Tranche 3 Share Appreciation Target”). 
 (b) Notwithstanding the foregoing, if Participant’s employment with the Company is terminated: 
 (i) as a result of his death; 
 (ii) due to his Disability (as
defined in the Employment Agreement); 
 (iii) by the Company without Cause (as defined in the Employment
Agreement); or 
 (iv) by Participant for Good Reason (as defined in the Employment Agreement); 

(A) all of his then unvested Performance Shares that would have vested on the next vesting date immediately following the Date of Termination (as defined
in the Employment Agreement) shall vest provided that the applicable Share Appreciation Target for such vesting period is achieved prior to the Date of Termination and (B) fifty percent (50%) of his remaining unvested Performance Shares
shall vest provided that the respective Share Appreciation Target is achieved prior to the Date of Termination, calculated in each case in accordance with the 30-Day Average but with the relevant measurement period ending on the Date of Termination.

 (c) Notwithstanding the foregoing or the terms of the Plan to the contrary, to the extent the consideration
per share payable to the Company’s stockholders at the closing of a transaction resulting in a Change of Control (as defined in the Employment Agreement) is equal to or exceeds one hundred twenty percent (120%) of the Share Appreciation
Target of any tranche or tranches of Performance Shares, such tranche or tranches of Performance Shares shall vest in full simultaneously with the closing of the Change of Control transaction. For the avoidance of doubt, in the event that the
consideration per share payable to the Company’s stockholders at the closing of the Change of Control transaction is less than one hundred twenty 

  
 3 

 
percent (120%) of the Share Appreciation Target of any tranche or tranches of Performance Shares, Participant shall no longer be entitled to the accelerated vesting of such tranche or
tranches of Performance Shares under this Section 2.1(c). Notwithstanding the foregoing, Participant shall continue to be entitled to the accelerated vesting rights with respect to the Performance Shares set forth in Section 2.1(b).

 (d) If any of the Performance Shares granted hereunder are still outstanding as of the third anniversary of
the Vesting Commencement Date and have not otherwise vested after giving effect to the vesting provisions of this Section 2.1 as of 5:00 p.m. (local time in California on such date), the unvested Performance Shares shall automatically be
forfeited without the payment of any consideration to Participant. 
 (e) Except as otherwise provided herein, if
Participant ceases to be in Continuous Service of the Company as Chief Operating Officer at any time and for any reason prior to the vesting of the Performance Shares or notifies the Company of his intention to cease his Continuous Service (other
than in the case of a termination for Good Reason), all unvested Performance Shares shall automatically be forfeited without the payment of any consideration to Participant upon such cessation of service. 

2.2 Vesting of Restricted Shares; Acceleration. 

(a) The Restricted Shares shall vest in the following manner: (i) Fifty Thousand (50,000) Restricted Shares
shall vest on the first anniversary of the Vesting Commencement Date, (ii) Fifty Thousand (50,000) Restricted Shares shall vest on the second anniversary of the Vesting Commencement Date and (iii) One Hundred Fifty Thousand
(150,000) Restricted Shares shall vest on the third anniversary of the Vesting Commencement Date; subject, in the case of (i), (ii) and (iii), to Participant serving as Chief Operating Officer of the Company on each of the respective
dates. 
 (b) Notwithstanding the foregoing, if Participant’s employment with the Company is terminated as a
result of any reason set forth in Section 2.1(b)(i) through (iv), (i) all of the Restricted Shares that would have vested on the next vesting date immediately following the Date of Termination shall vest as of such date, and
(ii) fifty percent (50%) of the remaining Restricted Shares shall vest as of the Date of Termination. 

(c) Notwithstanding the foregoing, if Participant’s employment with the Company is terminated on or within one
hundred eighty (180) days following a Change of Control, by the Company without Cause or by Participant for Good Reason, Participant shall be entitled to vesting in full of his then unvested Restricted Shares that would have vested on the next
vesting date immediately following the Date of Termination and the vesting of fifty percent (50%) of his remaining unvested Restricted Shares, provided, however, that if the consideration per share payable to the Company’s stockholders at
the closing of the Change of Control transaction equals or exceeds $5.50, the Participant shall be entitled to the vesting in full of his then unvested Restricted Shares. 

(d) Except as otherwise provided herein, if Participant ceases to be in Continuous Service of the Company as Chief
Operating Officer at any time and for any reason 

  
 4 

 
prior to the vesting of the Restricted Shares or notifies the Company of his intention to cease his Continuous Service (other than in the case of a termination for Good Reason), all unvested
Restricted Shares shall automatically be forfeited without the payment of any consideration to Participant upon such cessation of service. 

3. Company; Participant. 
 3.1 The term “Company” as used in this Agreement with reference to service shall include the Company and its Subsidiaries, as appropriate. 

3.2 Whenever the word “Participant” is used in any provision of this Agreement under circumstances where the
provision should logically be construed to apply to the beneficiaries, the executors, the administrators, or the person or persons to whom the Award Shares may be transferred by will or by the laws of descent and distribution, the word
“Participant” shall be deemed to include such person or persons. 
 4. Adjustments. The Award
Shares may be adjusted as provided for in Section 12 of the Plan and the Committee shall not exercise any discretion under Section 10.4 of the Plan to reduce Participant’s Award Shares hereunder. 

5. Compliance with Law. Notwithstanding any of the provisions hereof, the Company will not be obligated to issue or transfer any Award
Shares to Participant hereunder, if the exercise thereof or the issuance or transfer of such Award Shares shall constitute a violation by Participant or the Company of any provisions of any law or regulation of any governmental authority. Any
determination in this connection by the Committee shall be final, binding and conclusive. The Company shall take all appropriate steps, including, to the extent necessary, the filing of an appropriate registration statement at its sole expense, such
that Participant may sell the Award Shares upon the lapse of the restrictions set forth herein, subject to the Company’s insider trading policies. 
 6. No Right to Continuous Service. Nothing in this Agreement or in the Plan shall confer upon Participant any right to continue in the service of the Company or shall interfere with or
restrict in any way the rights of the Company, which are hereby expressly reserved, to terminate the services of or discharge Participant at any time for any reason whatsoever, with or without Cause. The Participant acknowledges and agrees that the
vesting of the Performance Shares and the Restricted Shares granted hereunder are premised upon Participant’s provision of future services to the Company as Chief Operating Officer and such Performance Shares and Restricted Shares shall not
accelerate upon his termination of Continuous Service as Chief Operating Officer for any reason, except as specifically provided herein. 

7. Representations and Warranties of Participant. The Participant represents and warrants to the Company that: 

7.1 The Participant acknowledges that there may be adverse tax consequences upon the vesting of the Award Shares or disposition of the
Award Shares once vested, and that Participant should consult a tax adviser prior to such time. 

  
 5 

 7.2 The Participant agrees to sign such additional documentation as may reasonably be
required from time to time by the Company to effectuate the terms of this Agreement. 
 8. Registration. The Company hereby agrees
to register the Award Shares as promptly as practicable after the granting of the respective Award Shares on Registration Statements on Form S-8 and Form S-3, as the case may be (or any successor to Form S-8 or Form S-3, as applicable), or to the
extent not available, on any similar short-form registration statement. 
 9. Taxes. 

9.1 The Participant agrees that, subject to Section 9.2 below, no later than the date as of which the respective restrictions on
each of the Performance Shares and Restricted Shares shall lapse with respect to all or any of the Performance Shares or Restricted Shares, as the case may be, covered by this Agreement, Participant shall pay to the Company (by check or wire
transfer) any federal, state or local income and employment taxes of any kind required by law to be withheld, if any, with respect to the Performance Shares or Restricted Shares for which the restrictions shall lapse; provided that Participant may
elect to satisfy this withholding obligation by having the Company withhold from Participant the number of Restricted Shares or Performance Shares, as applicable, having a Fair Market Value equal to the tax withholding obligation in respect of the
Performance Shares or Restricted Shares that vest (but no more than the minimum amount of shares required to be withheld by the Company that can be satisfied through the withholding of the shares). The Company shall, to the extent permitted by law
and Section 409A of the Internal Revenue Code, have the right to deduct from any payment of any kind otherwise due to Participant any federal, state or local taxes of any kind required by law to be withheld with respect to the Performance
Shares and Restricted Shares. 
 9.2 With respect to the grant of Award Shares hereunder, if Participant properly elects (within
thirty (30) days of the Grant Date) to include in gross income for federal income tax purposes an amount equal to the Fair Market Value of such Award Shares as of the date on which such Award Shares were granted pursuant to Section 83(b)
of the Code, Participant shall pay to the Company, or make other arrangements satisfactory to the Committee to pay to the Company in the year of such grant, any federal, state or local taxes required to be withheld with respect to such Award Shares.
If Participant fails to make such payments, the Company or its affiliates shall, to the extent permitted by law and Section 409A of the Internal Revenue Code, have the right to deduct from any payment of any kind otherwise due to Participant
any federal, state or local taxes of any kind required by law to be withheld with respect to such Award Shares. 
 10.
Notices. 
 (a) All notices, requests, demands or other communications that are required or may
be given under this Agreement shall be in writing and shall be given by personal delivery, by certified or registered United States mail (postage prepaid, return receipt requested), by a nationally recognized overnight delivery service for next day
delivery, or by facsimile transmission, as follows (or to such other address as any party may give in a notice given in accordance with the provisions hereof): 

  
 6 

 If to the Company, 

Vice President, Human Resources 
 The Wet Seal, Inc. 
 26972 Burbank 

Foothill Ranch, CA 92610 
 Facsimile No.: (949) 699-4722 
 If to Participant, at the most recent address
listed in the Company’s records. 
 (b) All notices, requests or other communications will be effective and
deemed given only as follows: (i) if given by personal delivery, upon such personal delivery, (ii) if sent by certified or registered mail, on the fifth business day after being deposited in the United States mail, (iii) if sent for
next day delivery by overnight delivery service, on the date of delivery as confirmed by written confirmation of delivery, (iv) if sent by facsimile, upon the transmitter’s confirmation of receipt of such facsimile transmission, except
that if such confirmation is received after 5:00 p.m. (in the recipient’s time zone) on a business day, or is received on a day that is not a business day, then such notice, request or communication will not be deemed effective or given until
the next succeeding business day. Notices, requests and other communications sent in any other manner, including by electronic mail, will not be effective. 
 11. Governing Law. This Agreement shall be construed and interpreted in accordance with the laws of the State of California without regard to its conflict of law principles. 

(signature page follows) 

  
 7 

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year
first above written. 
  

			
	THE WET SEAL, INC.
		
	By:	 	 
		 	Name:
		 	Title:

  

	
	PARTICIPANT
	
	  
	Ken Seipel

 (Signature page to
Award Agreement)

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