Document:

Stock Option Agreement

 

EXHIBIT 10.3

STOCK OPTION AGREEMENT

     THIS STOCK OPTION AGREEMENT (this “Agreement”), is made and effective as of this
16th day of November, 2004 (the “Grant Date”), by and between Sunair Electronics, Inc.,
a Florida corporation (“Sunair”), and John J. Hayes (the “Optionee”).

W I T N E S S E T H:

     WHEREAS, Sunair wishes to provide the Optionee the opportunity to purchase shares of common
stock of Sunair;

     NOW, THEREFORE, in consideration of the foregoing, and for other good and valuable
consideration, Sunair hereby grants the Optionee options to purchase shares of common stock of
Sunair, upon the following terms and conditions:

1. GRANT OF OPTION

     Subject to the terms and conditions of this Agreement, Sunair hereby grants to the Optionee an
option (the “Option”) to purchase an aggregate of One
Hundred Sixty-Six Thousand Six Hundred
Sixty-Seven (166,667) shares (the “Option Shares”) of Sunair’s common stock, $.10 par value per
share (“Common Stock”). This Option is a non-qualified stock option which is not intended to meet
the requirements of an “incentive stock option” within the meaning of Section 422 of the Internal
Revenue Code of 1986, as amended (the “Code”). The grant of this Option is subject to and shall
not be of any legal force or effect until: (i) Optionee begins his employment with Sunair pursuant
to the terms of Optionee’s Employment Agreement with Sunair dated November 16, 2004, and (ii)
consummation of the transactions contemplated by that certain Purchase Agreement, dated as of
November 17, 2004, by and between Sunair and Coconut Palm Capital Investors II, Ltd.

2. EXERCISE PRICE

     The exercise price (“Option Price”) of this Option shall be $5.00 per Option Share. The
Option Price of this Option shall be subject to adjustment in the event of changes in the
capitalization of the Company, as set forth in Section 8 hereto.

3. TERM AND VESTING OF OPTION

     (a) Option Period. Subject to the provisions of this Section 3 and Section 6 hereof,
this Option shall terminate and all rights to purchase shares hereunder shall cease on November 17,
2014 (such date being ten (10) years from Grant Date).

     (b) Vesting and Exercisability. Subject to the provisions of Sections 1 and 6 hereof,
this Option shall become vested upon the dates (the “Vesting Date”) described in the following
schedule:

 

 

	 	 	 	 	 	 	 	 	 
	 	 	Incremental Number of	 	Cumulative Number of
	Date	 	Vested Option Shares	 	Vested Option Shares
	November 16, 2005

	 	 	25	%	 	 	25	%
	November 16, 2006

	 	 	25	%	 	 	50	%
	November 16, 2007

	 	 	25	%	 	 	75	%
	November 16, 2008

	 	 	25	%	 	 	100	%

Notwithstanding the foregoing, the Board of Directors of Sunair (the “Board”) may in its discretion
provide that any vesting requirement or other such limitation on the exercise of this Option may be
rescinded, modified or waived by the Board, in its sole discretion, at any time and from time to
time after the Grant Date, so as to accelerate the time at which this Option may be exercised.

4. MANNER OF EXERCISE AND PAYMENT

     (a) Exercise. This Option may be exercised to the extent vested as provided in
Section 3 by delivery to Sunair on any business day, at its principal office, addressed to the
attention of the Stock Option Administrator, of written notice of exercise, which notice shall
specify the number of shares with respect to which this Option is being exercised, and shall be
accompanied by payment in full of the Option Price of the shares for which this Option is being
exercised, in accordance with Section 4(b) below. The minimum number of shares of Common Stock
with respect to which this Option may be exercised, in whole or in part, at any time shall be the
lesser of one hundred (100) shares or the maximum number of shares available for purchase under
this Option at the time of exercise.

     (b) Payment. Payment of the Option Price for the shares of Common Stock purchased
pursuant to the exercise of this Option shall be made in cash or in cash equivalents. An attempt
to exercise any Option granted hereunder other than as set forth above shall be invalid and of no
force and effect.

     (c) Issuance of Certificates. Promptly after the exercise of this Option, Optionee
shall be entitled to the issuance of a certificate or certificates evidencing his ownership of such
shares of Common Stock. An individual holding or exercising an Option shall have none of the
rights of a stockholder until the shares of Common Stock covered thereby are fully paid and issued
to him and, except as provided in Section 8 below, no adjustment shall be made for dividends or
other rights for which the record date is prior to the date of such issuance.

5. TRANSFERABILITY OF OPTION

     Unless otherwise permitted by the Board in its sole and absolute discretion, this Option shall
not be assignable or transferable by the Optionee, other than by will or the laws of descent and
distribution.

2

 

6. TERMINATION OF EMPLOYMENT, DEATH OR DISABILITY

     (a) General. Upon the termination of the employment or other service of the Optionee
with Sunair or any subsidiary (“Subsidiary”) of Sunair (Sunair and Subsidiary are collectively
referred to herein as the “Company”), other than by reason of Cause (as defined below), death or
“permanent and total disability” (within the meaning of Section 22(e)(3) of the Code) of the
Optionee, this Option shall expire thirty (30) days following the last day of the Optionee’s
employment or service with the Company, or, if earlier, the date specified in this Agreement.
Options will be exercisable only to the extent they are exercisable on the date the Optionee’s
employment or service terminates. Notwithstanding the foregoing provisions of this Section 6, the
Board may provide, in its discretion, that following the termination of employment or service of
Optionee with the Company, Optionee may exercise this Option, in whole or in part, at any time
subsequent to such termination of employment or service and prior to termination of this Option
pursuant to Section 3(a) above, either subject to or without regard to any vesting or other
limitation on exercise imposed pursuant to Section 3(b) above. Temporary absence from employment
or service because of illness, vacation, approved leaves of absence, military service and transfer
of employment shall not constitute a termination of employment or service with the Company.

     (b) Cause. If the Company terminates the Optionee’s employment or service for Cause
(as defined below), all Options granted to Optionee shall terminate upon the date of such
termination of employment or service and Optionee shall have no further right to purchase Common
Stock pursuant to such Options. For purposes of this Agreement, “Cause” means (i) failure or
refusal of the Optionee to perform the duties and responsibilities that the Company requires to be
performed by him, (ii) gross negligence or willful misconduct by the Optionee in the performance of
his duties, (iii) commission by the Optionee of an act of dishonesty affecting the Company , or the
commission of an act constituting common law fraud or a felony, or (iv) the Optionee’s commission
of an act (other than the good faith exercise of his business judgment in the exercise of his
responsibilities) resulting in material damages to the Company. Notwithstanding the above, if
Optionee and the Company have entered into an employment or other agreement which defines the term
“Cause” for purposes of such agreement, “Cause” shall be defined pursuant to the definition in such
agreement with respect to such Optionee’s Options. The Board shall determine whether Cause exists
for purposes of this Agreement and such determination shall be final, conclusive and binding on the
Optionee.

     (c) Death or Disability. If Optionee’s employment or service with the Company
terminates by reason of death or “permanent and total disability” (within the meaning of Section
22(e)(3) of the Code), Optionee, Optionee’s estate or the devisee named in Optionee’s valid last
will and testament or Optionee’s heir at law who inherits the Option (whichever is applicable) has
the right, at any time within a period not to exceed three (3) months after the date of such
termination and prior to the termination of this Option pursuant to Section 3(a) above, to
exercise, in whole or in part, any vested portion of this Option (in accordance with Section 3(b)
above) held by Optionee upon such termination. Any unvested portion of this Option shall terminate
upon Optionee’s termination of employment or service with the Company by reason of death or
“permanent and total disability.”

3

 

7. REQUIREMENTS OF LAW

     (a) Violations of Law. The Company shall not be required to sell or issue any shares
of Common Stock under this Option if the sale or issuance of such shares would constitute a
violation by the individual exercising this Option or the Company of any provisions of any law or
regulation of any governmental authority, including without limitation, any federal or state
securities laws or regulations. Any determination in this connection by the Board shall be final,
binding, and conclusive. The Company shall not be obligated to take any affirmative action in
order to cause the exercise of this Option or the issuance of shares pursuant thereto to comply
with any law or regulation of any governmental authority.

     (b) Registration. At the time of any exercise of this Option, the Company may, if it
shall determine it necessary or desirable for any reason, require the Optionee (or his or her
heirs, legatees or legal representative, as the case may be), as a condition to the exercise
thereof, to deliver to the Company a written representation of, among other things, present
intention to purchase the shares for their own account as an investment and not with a view to, or
for sale in connection with, the distribution of such shares, except in compliance with applicable
federal and state securities laws with respect thereto. In the event such representation is
required to be delivered, an appropriate legend may be placed upon each certificate delivered to
the Optionee (or his or her heirs, legatees or legal representative, as the case may be) upon his
or her exercise of part or all of this Option and a stop transfer order may be placed with the
transfer agent. The Company shall not be obligated to take any affirmative action in order to
cause the exercisability or vesting of this Option or to cause the exercise of this Option or the
issuance of shares pursuant thereto to comply with any law or regulation of any governmental
authority.

     (c) Withholding. The Board may make such provisions and take such steps as it may
deem necessary or appropriate for the withholding of any taxes that the Company is required by any
law or regulation of any governmental authority, whether federal, state or local, domestic or
foreign, to withhold in connection with the exercise of this Option, including, but not limited to,
(i) the withholding of delivery of shares of Common Stock upon exercise of this Option until the
holder reimburses the Company for the amount the Company is required to withhold with respect to
such taxes, (ii) the canceling of any number of shares of Common Stock issuable upon exercise of
this Option in an amount sufficient to reimburse the Company for the amount it is required to so
withhold, (iii) withholding the amount due from Optionee’s wages or compensation due such person,
or (iv) requiring the Optionee to pay the Company cash in the amount the Company is required to
withhold with respect to such taxes.

8. EFFECT OF CHANGES IN CAPITALIZATION

     (a) Recapitalization. If the outstanding shares of Common Stock of Sunair are
increased or decreased or changed into or exchanged for a different number or kind of shares or
other securities of Sunair by reason of any recapitalization, reclassification, reorganization
(other than as described in 8(b) below), stock split, reverse split, combination of shares,
exchange of shares, stock dividend or other distribution payable in capital stock of Sunair, or
other increase or decrease in such shares effected without receipt of consideration by Sunair, an
appropriate and proportionate adjustment

4

 

shall be made by the Board in the number and kind of shares of Common Stock issuable upon
exercise of this Option, and in the Option Price per share of this Option.

     (b) Reorganization or Change in Control. In the event of a Reorganization (as defined
below) of Sunair or a Change in Control (as defined below) of Sunair, the Board may in its sole and
absolute discretion, provide that (i) this Option is immediately exercisable or vested, without
regard to any limitation imposed pursuant to this Agreement and/or (ii) that this Option
terminates, provided however, that Optionee shall have the right, immediately prior to the
occurrence of such Reorganization or Change in Control and during such reasonable period as the
Board in its sole discretion shall determine and designate, to exercise any vested portion of this
Option in whole or in part. In the event that the Board does not terminate this Option upon a
Reorganization of Sunair then this Option shall upon exercise thereafter entitle the Optionee to
such number of shares of Common Stock or other securities or property to which a holder of shares
of Common Stock would have been entitled to upon such Reorganization. For purposes of this
Agreement a “Reorganization” of an entity shall be deemed to occur if such entity is a party to a
merger, consolidation, reorganization, or other business combination with one or more entities in
which said entity is not the surviving entity, if such entity disposes of substantially all of its
assets, or if such entity is a party to a spin-off, split-off, split-up or similar transaction;
provided, however, that the transaction shall not be a Reorganization if Sunair, any Parent or any
Subsidiary is the surviving entity. For purposes of this Agreement, a “Change in Control” shall be
deemed to occur if any person or group of persons shall acquire direct or indirect beneficial
ownership (whether as a result of stock ownership, revocable or irrevocable proxies or otherwise)
of securities of an entity, pursuant to one or more transactions, such that after consummation and
as a result of such transaction, such person has direct or indirect beneficial ownership of 50% or
more of the total combined voting power of the Common Stock. For purposes of this Agreement, a
“person” shall mean any person, corporation, partnership, joint venture or other entity or any
group (as such term is defined for purposes of Section 13(d) of the Securities Exchange Act of
1934, as amended (the “Exchange Act”)), other than a Parent or Subsidiary, and “beneficial
ownership” shall be determined in accordance with Rule 13d-3 under the Exchange Act.

     (c) Dissolution or Liquidation. Upon the dissolution or liquidation of Sunair, this
Option shall terminate. In the event of any termination of this Option under this Section 8(c),
Optionee shall have the right, immediately prior to the occurrence of such termination and during
such reasonable period as the Board in its sole discretion shall determine and designate, to
exercise this Option in whole or in part, whether or not this Option was otherwise exercisable at
the time such termination occurs and without regard to any vesting or other limitation on exercise
imposed pursuant to Section 3 above.

     (d) Adjustments.
Adjustments under this Section 8 related to stock or securities of
Sunair shall be made by the Board, whose determination in that respect shall be final, binding, and
conclusive. No fractional shares of Common Stock or units of other securities shall be issued
pursuant to any such adjustment, and any fractions resulting from any such adjustment shall be
eliminated in each case by rounding downward to the nearest whole share or unit.

     (e) No Limitations. The grant of this Option hereunder shall not affect or limit in
any way the right or power of Sunair to make adjustments, reclassifications, reorganizations or
changes

5

 

of its capital or business structure or to merge, consolidate, dissolve or liquidate, or to
sell or transfer all or any part of its business or assets.

9. DISCLAIMER OF RIGHTS

     No provision of this Agreement shall be construed to confer upon any individual, including
Optionee, the right to remain in the employ of or to continue in any other contractual relationship
with the Sunair or to interfere in any way with the right and authority of the Sunair either to
increase or decrease the compensation of any individual, including Optionee, at any time, or to
terminate any employment or other relationship between any individual, including Optionee, and the
Sunair.

10. NONEXCLUSIVITY OF THIS AGREEMENT

     This Agreement shall not be construed as creating any limitations upon the right and authority
of the Board to adopt such other incentive compensation arrangements (which arrangements may be
applicable either generally to a class or classes of individuals or specifically to a particular
individual or individuals) as the Board in its discretion determines desirable, including, without
limitation, the granting of stock options or stock appreciation rights.

11. MISCELLANEOUS

     (a) Indulgences, Etc. Neither the failure nor any delay on the part of either party
to exercise any right, remedy, power or privilege under this Agreement shall operate as a waiver
thereof, nor shall any single or partial exercise of any right, remedy, power or privilege preclude
any other or further exercise of the same or of any other right, remedy, power or privilege, nor
shall any waiver of any right, remedy, power or privilege with respect to any occurrence be
construed as a waiver of such right, remedy, power or privilege with respect to any other
occurrence. No waiver shall be effective unless it is in writing and is signed by the party
asserted to have granted such waiver.

     (b) Controlling Law. This Agreement and all questions relating to its validity,
interpretation, performance and enforcement (including, without limitation, provisions concerning
limitations of actions), shall be governed by and construed in accordance with the laws of the
State of Florida, without application to the principles of conflict of laws.

     (c) Notices. All notices, requests, demands and other communications required or
permitted under this Agreement shall be in writing and shall be deemed to have been duly given,
made and received only when personally delivered, one day following the day when deposited with an
overnight courier service for overnight priority service, such as Federal Express, for delivery to
the intended addressee or three days following the day when deposited in the United States mails,
first class postage prepaid, certified or registered mail, and addressed, in the case of Sunair,
its principal place of business, and, in the case of Optionee, as set forth below Optionee’s
signature on the last page hereof. Any person may alter the address to which communications or
copies are to be sent by giving notice of such change of address in conformity with the provisions
of this Section for the giving of notice.

6

 

     (d) Binding Nature of Agreement; Transferability. This Agreement shall be binding
upon and inure to the benefit of the parties hereto and their respective heirs, personal
representatives, successors and assigns. This Agreement shall not be assignable or transferable by
the Optionee other than by will or the laws of descent and distribution.

     (e) Severability. The provisions of this Agreement are independent of and separable
from each other, and no provision shall be affected or rendered invalid or unenforceable by virtue
of the fact that for any reason any other or others of them may be invalid or unenforceable in
whole or in part.

     (f) Section Headings. The section headings in this Agreement are for convenience
only; they form no part of this Agreement and shall not affect its interpretation.

     (g) Number of Days. In computing the number of days for purposes of this Agreement,
all days shall be counted, including Saturdays, Sundays and holidays; provided, however, that if
the final day of any time period falls on a Saturday, Sunday or holiday on which federal banks are
or may elect to be closed, then the final day shall be deemed to be the next day which is not a
Saturday, Sunday or such holiday.

     (h) No Third-Party Beneficiaries. This Agreement shall not confer any rights or
remedies upon any person other than the parties and their respective successors and permitted
assigns.

     (i) Entire Agreement; Amendments. This Agreement (including the documents referred to
herein) constitutes the entire agreement among the parties and supersedes any prior understandings,
agreements, or representations by or among the parties, written or oral, that may have related in
any way to the subject matter hereof. This Agreement may not be amended, supplemented or modified
in whole or in part except by an instrument in writing signed by the party or parties against whom
enforcement of any such amendment, supplement or modification is sought.

     (j) Construction. The language used in this Agreement will be deemed to be the
language chosen by the parties to express their mutual intent, and therefore strict construction
shall be applied against any party. Any reference to any federal, state, local or foreign statute
or law shall be deemed also to refer to the rules and regulations promulgated thereunder, unless
the context requires otherwise. The parties intend that each representation, warranty, and
covenant contained herein shall have independent significance. If any party has breached any
representation, warranty, or covenant contained herein in any respect, the fact that there exists
another representation, warranty or covenant relating to the same subject matter (regardless of the
relative levels of specificity) which the party has not breached shall not detract from or mitigate
the fact that the party is in breach of the first representation, warranty or covenant.

     (k) Counterparts. This Agreement may be executed in one or more counterparts, each of
which will be deemed an original and all of which together will constitute one and the same
instrument.

7

 

     (l) Pronouns. The use of any gender in this Agreement shall be deemed to include all
genders, and the use of the singular shall be deemed to include the plural and vice versa, wherever
it appears appropriate from the context.

[SIGNATURES ON FOLLOWING PAGE]

8

 

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

	 	 	 	 	 
	 	SUNAIR ELECTRONICS, INC., a Florida corporation

 	 
	 	By:  	/s/ James E. Laurent
 	 
	 	 	James E. Laurent 	 
	 	 	President and Chief Executive Officer 	 
	 

	 	 	 	 	 
	 	OPTIONEE:

 	 
	 	/s/     John J. Hayes
 	 
	 	John J. Hayes 	 
	 	Address:	 ___________________________

 ___________________________	 
	 

9exv10w1

 

Exhibit 10.1

EMPLOYMENT AGREEMENT

     THIS EMPLOYMENT AGREEMENT is made and entered into as of the fourth day of August, 2004, by
and between CHICO’S FAS, INC. a Florida corporation (the “Employer”), and CHARLES L. NESBIT, JR.
(the “Employee”).

WITNESSETH:

     1. Employment. The Employer hereby employs the Employee, and the Employee hereby
accepts such employment, upon the terms and subject to the conditions set forth in this Agreement.

     2. Term. Subject to the provisions of termination as hereinafter provided, the term
of employment under this Agreement shall commence August 4, 2004 (the “Commencement Date”) and
shall continue through August 3, 2005; provided, however, that beginning on August 3, 2005 and on
each August 3rd (each a “Renewal Date”) thereafter, the term of this Agreement shall automatically
be extended for one additional year, unless either party gives the other written notice of
non-renewal at least ninety (90) days prior to any such Renewal Date.

     3. Compensation; Reimbursement, Etc.

          (a) Basic Salary. The Employer shall pay to the Employee as compensation for all
services rendered by the Employee during the term of this Agreement a basic annualized salary of
$300,000 per year (the “Basic Salary”), or such other sum as the parties may agree on from time to
time, payable monthly or in other more frequent installments, as determined by the Employer. The
Board of Directors of the Employer shall have the right to increase the Employee’s compensation
from time to time by action of the Board of Directors. In addition, the Board of Directors of the
Employer, in its discretion, may, with respect to any year during the term hereof, award a bonus or
bonuses to the Employee in addition to the bonuses provided for in Sections 3(b). The compensation
provided for in this Section 3(a) shall be in addition to any pension or profit sharing payments
set aside or allocated for the benefit of the Employee.

          (b) Bonus. In addition to the Basic Salary paid pursuant to Section 3(a), the
Employer shall pay as incentive compensation a semi annual bonus based upon the Employee’s
performance and computed in accordance with an incentive management bonus plan that is each year
recommended and/or approved by the Compensation and Benefits Committee of the Employer and
subsequently adopted by the Board of Directors of the Employer. The Employee’s participation in
such incentive management bonus plan shall be on the basis and terms as recommended and/or approved
by the Compensation and Benefits Committee of the Employer and subsequently adopted by the Board of
Directors of the Employer, understanding that the bonuses and criteria may differ among the
Employer’s officers as recommended and/or approved by the Compensation and Benefits Committee and
subsequently determined and/or approved by the Board of Directors and, provided that for each bonus
period during the term of this Agreement the minimum bonus, which is earned only if the criteria
established from time to

 

 

time with respect to such minimum bonus are met, shall be equal to 50% of
the Employee’s Basic Salary during such bonus period and the maximum bonus, which is earned only if
the criteria established from time to time for such maximum bonus are met, shall be equal to 100%
of the
Employee’s Basic Salary during such bonus period. In addition, during the first twelve (12)
months of the term of this Agreement and provided that the Employee remains employed during the
entire twelve (12) month period, the aggregate bonus paid to the Employee (which shall be the sum
of the bonus payable with respect to the period from August 4, 2004 through the end of fiscal year
2004 and the bonus payable with respect to the first 6 months of fiscal year 2005) shall be no less
than $150,000.

          (c) Stock Options. Effective as of August 4, 2004, the Employee shall receive one or
more nonqualified stock options to purchase an aggregate of 100,000 shares of the Employer’s common
stock. The right to purchase such stock shall be nontransferable and shall vest in equal thirds on
each one (1) year anniversary of the grant date over a three (3) year period commencing one (1)
year after the Commencement Date. The options shall have a term of ten (10) years and the exercise
price of the options shall be equal to the closing market price of the stock on the date of grant.
The options shall become fully vested upon the occurrence of any of the following: (i) a
termination of Employee’s employment by the Employer without Good Cause (as defined below); or (ii)
the occurrence of a Change in Control (as defined below) (the “Accelerated Vesting”). The Employer
may grant said stock options either under the Employer’s currently existing stock option plans
(“Plans”), or in such other manner as may be determined by the Employer; provided, however, that
the terms pursuant to which the stock option is granted, if granted outside of the Plans, shall be
substantially similar to the terms of grant contained in the Plans, and further provided, that in
any case the shares of common stock underlying the options shall be registered on Form S-8 (or an
equivalent registration statement). During the Employment Term, the Employee shall also be
eligible to receive additional stock options as determined by the Board of Directors (or the
appropriate committee thereof) in accordance with the Employer’s practices applicable to senior
officers of the Employer.

          (d) Reimbursements. The Employer shall reimburse the Employee for all reasonable
expenses incurred by the Employee in the performance of his duties under this Agreement; provided,
however, that the Employee must furnish to the Employer an itemized account, satisfactory to the
Employer, in substantiation of such expenditures. The Employee shall be entitled to first class
air travel where the travel involves a domestic flight in excess of four (4) hours or an
international flight.

          (e) Other Fringe Benefits. The Employee shall be entitled to such fringe benefits
including, but not limited to, medical and insurance benefits as may be provided from time to time
by the Employer to other management employees of the Employer.

          (f) Automobile. The Employee shall provide his own automobile for use as an employee
hereunder. The Employer shall provide the Employee with an automobile allowance of $2,000 per
month ($24,000 per year).

          (g) Relocation and Moving Expenses; Commuting Expenses.

2

 

               (i) Moving. To assist the Employee in moving from Winston-Salem, North Carolina to a
southwest Florida location within fifty (50) miles of the Employer’s Fort Myers headquarters, the
Employer shall reimburse the Employee for all reasonable and customary moving expenses for
household goods packing and transportation incurred therewith by the Employee and, if required
because the Employee’s permanent home in southwest Florida is still
under construction at the time of the move, for up to twelve (12) months household goods
storage costs and, upon completion of the move, shall pay to the Employee $25,000 to cover any
incidental moving expenses and house closing costs (collectively, the “Moving Expenses Payment”).

               (ii) Commuting Expenses. The Employer acknowledges that the Employee has a residence
in the Winston-Salem, North Carolina area and will establish a temporary residence in the Fort
Myers, Florida area. The Employer shall reimburse the Employee for or shall pay directly for, as
the case may be, reasonable housing and commuting expenses incurred by Employee in connection with
the performance of his obligations under this Agreement for a period of up to six (6) months from
the date of this Agreement of (1) temporary living expenses in the Fort Myers, Florida area, with
the understanding that living accommodations may be arranged for by the Employer and (2) reasonable
travel expenses between Employee’s residence in Winston-Salem, North Carolina and the Employer’s
corporate offices for up to two round trips per month (the “Commuting Expenses Payment”).

               (iii) Relocation Expenses. With respect to the Employee’s primary residence in the
Winston-Salem, North Carolina area, on or before the Commencement Date, the Employee will list such
primary residence for sale with an agency specializing in the sale of similar homes. If such
primary residence sells by February 4, 2005, the Employer will reimburse the Employee for the real
estate selling commission paid, up to a maximum of $75,000 (the “Commission Payment”). If such
primary residence has not sold by February 4, 2005, the Employer and the Employee will engage in a
review of the Employee’s performance and future potential with the Employer (the “Review”). If, as
a result of the Review, both parties agree that the Employee’s performance is meeting with the
Employer’s expectations and that it is in the interest of the Employer for the Employee to complete
his permanent relocation to southwest Florida, the Employee shall have the option, exercisable any
time from that date until August 1, 2005, to cause the Employer to purchase the Employee’s primary
residence in the Winston-Salem, North Carolina area for a price equal to the fair market value of
such primary residence (the “Put Option”); provided that if the Put Option is not exercised by
August 3, 2005, the Employer will be relieved of any and all obligation to purchase the primary
residence and of any and all obligation to reimburse the Employee for the real estate selling
commission. If, as a result of the Review, the parties are not in agreement that the Employee’s
performance is meeting with the Employer’s expectations and are not in agreement that it is in the
interest of the Employer for the Employee to complete his permanent relocation to southwest
Florida, the Employer will be relieved of any and all obligation to purchase the primary residence
and of any and all obligation to reimburse the Employee for the real estate selling commission. In
order to determine the fair market value of the primary residence for purposes of an exercise of
the Put Option, the Employer shall secure an independent appraisal of such primary residence, at
its sole

3

 

cost. If the parties both accept such independent appraisal, then such appraisal shall be
the fair market value for purposes of the Put Option; however if the parties cannot agree, each
party shall secure, at its own respective cost, an independent appraisal of such primary residence
and the fair market value shall be the average of the three appraisals. In carrying out the Put
Option, the Employer can either (x) purchase the residence at the determined fair market value or
(y) cause the residence to be purchased by a relocation firm and then pay to the Employee the
difference between the determined fair market value and the amount paid for the residence by the
relocation firm. By mutual agreement, the Employer and the Employee can modify any of the dates
specified in this subsection (iii).

               (iv) Gross Up. To the extent that the Moving Expenses Payment, the Commuting Expenses
Payment or the Commission Payment are subject to income taxes payable by the Employee, the Employer
shall pay the Employee an amount to reimburse the Employee for such income taxes due on a gross-up
basis.

               (v) Substantiation. The Employer will make any such payments required under this
subsection (g) relating to expenditures made by the Employee (as opposed to those direct billed to
the Employer) within 30 days after receipt of Employee’s written request therefore, which request
shall be accompanied by documentation supporting the request for reimbursement. The Employee
agrees to cooperate with the Employer so as to obtain favorable rates for the costs and services
for which the Employer shall reimburse the Employee. The Employer agrees that it will act
reasonably in approving and reimbursing the Employee for the Moving Expenses, Commuting Expenses
and Relocation Expenses.

          (h) Deferral of Certain Compensation Payments. Notwithstanding any other provisions
of this Agreement to the contrary, any portion of the cash compensation otherwise payable to the
Employee under this Agreement shall not be paid currently in cash to the Employee hereunder if
pursuant to the provisions of Section 162(m) of the Internal Revenue Code of 1986, as amended, or
any similar or successor provision (“Section 162(m)”), the Employer would not be entitled to a
current deduction for federal income tax purposes in respect of the payment of such portion of the
cash compensation (any such compensation being referred to as “Section 162(m) Non-Deductible
Compensation”). The payment of any such Section 162(m) Non-Deductible Compensation shall be
deferred (the “Deferred Compensation”), pursuant to the Employer’s then effective deferred
compensation plan or, in the absence of such a plan, pursuant to such other arrangement as will
defer the recognition for federal income tax purposes of such Deferred Compensation until such time
as the Deferred Compensation can be paid such that the Employer is entitled to a then current
deduction for federal income tax purposes. The Deferred Compensation shall be recorded on the
books of the Employer but shall be unfunded. The Employee’s right to receive the Deferred
Compensation in cash shall arise automatically no later than 30 days after the first time when the
deduction for federal income taxes by the Employer in respect of the Section 162(m) Non-Deductible
Compensation to which the Deferred Compensation relates would no longer be prohibited by Section
162(m). Nothing herein shall prohibit the Employee from deferring additional amounts of the
Employee’s cash compensation in accordance with the terms of any then applicable deferred
compensation plan.

4

 

     4. Duties. The Employee is engaged as the Senior Vice President-Strategic Planning &
Business Development of the Employer. In addition, the Employee shall have such other duties as
may from time to time be reasonably assigned to him by the Chief Executive Officer and/or the Board
of Directors of the Employer.

     5. Extent of Services; Vacations and Days Off.

          (a) During the term of his employment under this Agreement, the Employee shall devote such
time, energy and attention during regular business hours to the benefit and business of the
Employer as may be reasonably necessary in performing his duties pursuant to this Agreement.

          (b) The Employee shall be entitled to at least four (4) weeks of vacation per year with pay
and to such personal and sick leave with pay in accordance with the policy of the Employer as may
be established from time to time by the Employer and applied to other senior officers of the
Employer.

     6. Facilities. The Employer shall provide the Employee with a fully furnished office,
and the facilities of the Employer shall be generally available to the Employee in the performance
of his duties pursuant to this Agreement, it being understood and contemplated by the parties that
all equipment, supplies and office personnel required in the performance of the Employee’s duties
under this Agreement shall be supplied by the Employer.

     7. Illness or Incapacity, Termination on Death, Etc..

          (a) If the Employee dies during the term of his employment, the Employer shall pay to the
estate of the Employee such compensation, including any bonus compensation earned but not yet paid,
as would otherwise have been payable to the Employee up to the end of the month in which his death
occurs plus one (1) year’s additional basic salary compensation. The Employer shall have no
additional financial obligation under this Agreement to the Employee or his estate. After
receiving the payments provided in this subparagraph (a), the Employee and his estate shall have no
further rights under this Agreement.

          (b) (i) During any period of disability, illness or incapacity during the term of this
Agreement which renders the Employee at least temporarily unable to perform the services required
under this Agreement for a period which shall not equal or exceed one hundred and eighty (180)
continuous days, or one hundred and eighty (180) continuous days in any one (1) year period, the
Employee shall receive the compensation payable under Section 3(a) of this Agreement plus any bonus
compensation earned but not yet paid, less any benefits received by him under any disability
insurance carried by or provided by the Employer. All rights of the Employee under this Agreement
(other than rights already accrued) shall terminate as provided below upon the Employee’s permanent
disability (as defined below), although the Employee shall continue to receive any disability
benefits to which he may be entitled under any disability income insurance which may be carried by
or provided by the Employer from time to time.

5

 

               (i) The term “permanent disability” as used in this Agreement shall mean the inability of the
Employee, as determined by the Board of Directors of the Employer, by reason of physical or mental
disability to perform the duties required of him under this Agreement for a period of one hundred
and eighty (180) days in any one-year period. Successive periods of disability, illness or
incapacity will be considered separate periods unless the later period of disability, illness or
incapacity is due to the same or related cause and commences less than six months from the ending
of the previous period of disability. Upon such determination, the Board of Directors may
terminate the Employee’s employment under this Agreement upon ten (10) days’ prior written notice.
If any determination of the Board of Directors with respect to permanent disability is disputed by
the Employee, the parties hereto agree to abide by the decision of a panel of three physicians.
The Employee and Employer shall each appoint one member, and the third member of the panel shall be
appointed by the other two members. The Employee agrees to make himself available for and submit
to examinations by such physicians as may be directed by the Employer. Failure to submit to any
such examination shall constitute a breach of a material part of this Agreement.

     8. Other Terminations.

          (a) Voluntary Termination By Employee.

               (i) The Employee may terminate his employment hereunder upon giving at least sixty (60) days’
prior written notice.

               (ii) If the Employee gives notice pursuant to Section 8(a) above, the Employer shall have the
right to relieve the Employee, in whole or in part, of his duties under this Agreement (without
reduction in compensation through the termination date).

          (b) Termination by Employer.

               (i) Except as otherwise provided in this Agreement, the Employer may terminate the employment
of the Employee hereunder only for good cause and upon written notice; provided, however, that no
breach or default by the Employee shall be deemed to occur hereunder unless the Employee shall have
failed to cure the breach or default within thirty (30) days after he received written notice
thereof indicating that it is a notice of termination pursuant to this Section of this Agreement.

               (ii) As used herein, “good cause” shall include:

               (1) the Employee’s conviction of either a felony involving moral turpitude or any crime
in connection with his employment by the Employer which causes the Employer a substantial
detriment, but specifically shall not include traffic offenses;

               (2) actions by the Employee which clearly are contrary to the best interests of the
Employer;

6

 

               (3) the Employee’s willful failure to take actions permitted by law and necessary to
implement policies of the Employer’s Board of Directors which the Board of Directors has
communicated to him in writing;

               (4) the Employee’s continued failure to attend to his duties as an management employee
of the Employer; or

               (5) any condition which either resulted from the Employee’s substantial dependence, as
determined by the Board of Directors of the Employer, on alcohol, or any narcotic drug or
other controlled or illegal substance. If any determination of substantial dependence is
disputed by the Employee, the parties hereto agree to abide by the decision of a panel of
three physicians appointed in the manner and subject to the same penalties for noncompliance
as specified in Section 7(b)(ii) of this Agreement.

               (iii) Termination of the employment of the Employee for reasons other than those expressly
specified in this Agreement as good cause shall be deemed to be a termination of employment
“without good cause.”

          (c) Continuation of Compensation Following Termination Without Good Cause.

               (i) If the Employer shall terminate the employment of the Employee without good cause
effective on a date earlier than the termination date provided for in Section 2 (with the effective
date of termination as so identified by the Employer being referred to herein as the “Accelerated
Termination Date”), the Employee, until the termination date provided for in Section 2 or until the
date which is twelve (12) months after the Accelerated Termination Date, whichever is later, shall
continue to receive the Basic Salary and other compensation and employee benefits (including
without limitation the bonus that would otherwise have been payable during such compensation
continuation period under the bonus plan in effect immediately before the Accelerated Termination
Date) that the Employer has heretofore in Section 3 agreed to pay and to provide for the Employee,
in each case in the amount and kind and at the time provided for in Section 3 and the Employer
shall provide and pay for senior officer executive level outplacement assistance at Lee Hecht
Harrison or Williams, Roberts, Young for one (1) year after such termination; provided that,
notwithstanding such termination of employment, the Employee’s covenants set forth in Section 10
and Section 11 are intended to and shall remain in full force and effect.

               (ii) The parties agree that, because there can be no exact measure of the damage that would
occur to the Employee as a result of a termination by the Employer of the Employee’s employment
without good cause, the payments and benefits paid and provided pursuant to this Section 8(c) shall
be deemed to constitute liquidated damages and not a penalty for the Employer’s termination of the
Employee’s employment without good cause, and the Employer agrees that the Employee shall not be
required to mitigate his damages.

7

 

          (d) Rights Upon Change in Control.

               (i) If a Change in Control of the Employer, as defined in Section 8(d)(ii) shall occur and the
Employee shall:

               (1) voluntarily terminate his employment within one year following such Change in
Control and such termination shall be as a result of the Employee’s good faith determination
that as a result of the Change in Control and a change in circumstances thereafter
significantly affecting his position, he can no longer adequately exercise the authorities,
powers, functions or duties attached to his position as a senior officer of the Employer; or

               (2) voluntarily terminate his employment within one year following such Change in
Control, and such termination shall be as a result of the Employee’s good faith
determination that he can no longer perform his duties as a senior officer of the Employer
by reason of a substantial diminution in his responsibilities, status or position; or

               (3) have his employment terminated by the Employer for reasons other than those
specified in Section 8(b)(ii) within one (1) year following such Change in Control;

then in any of the above three cases, the Employee shall have, instead of the further rights
described in Section 3(a), the right to immediately terminate this Agreement and a nonforfeitable
right to receive, payable in a lump sum, the sum of the monthly amounts of his Basic Salary for a
period equal to the greater of 24 months or the number of full months remaining in the period from
the date of such termination through the termination date provided for in Section 2 of this
Agreement plus an amount equal to twice the aggregate of all bonuses earned by the Employee with
respect to the 12 month period ended on the fiscal quarter end which next precedes such date of
termination and the Employer shall provide the Employee with Accelerated Vesting; provided that,
notwithstanding such termination of employment, the Employee’s covenants set forth in Section 10
and Section 11 are intended to and shall remain in full force and effect.

               (ii) For purposes of this Agreement, a “Change in Control” shall mean:

               (1) the obtaining by any party of fifty percent (50%) or more of the voting shares of
the Employer pursuant to a “tender offer” for such shares as provided under Rule 14d-2
promulgated under the Securities Exchange Act of 1934, as amended, or any subsequent
comparable federal rule or regulation governing tender offers; or

               (2) individuals who were members of the Employer’s Board of Directors immediately prior
to any particular meeting of the Employer’s shareholders which involves a contest for the
election of directors fail to constitute a majority of the members of the Employer’s Board
of Directors following such election; or

8

 

               (3) the Employer’s executing an agreement concerning the sale of substantially all of
its assets to a purchaser which is not a subsidiary; or

               (4) the Employer’s adoption of a plan of dissolution or liquidation; or

               (5) the Employer’s executing an agreement concerning a merger or consolidation
involving the Employer in which the Employer is not the surviving corporation or if,
immediately following such merger or consolidation, less than fifty percent (50%) of the
surviving corporation’s outstanding voting stock is held by persons who are stockholders of
the Employer immediately prior to such merger or consolidation.

               (iii) The provisions of Section 8(c) and this Section 8(d) are mutually exclusive, provided,
however, that if within one year following commencement of an 8(c) payout there shall be a Change
in Control as defined in Section 8(d)(ii), then the Employee shall be entitled to the amount
payable to the Employee under Section 8(d)(i) reduced by the amount that the Employee has received
under Section 8(c) up to the date of the change in control. The triggering of the lump sum payment
requirement of this Section 8(d) shall cause the provisions of Section 8(c) to become inoperative.
The triggering of the continuation of payment provisions of Section 8(c) shall cause the provisions
of Section 8(d) to become inoperative except to the extent provided in this Section 8(d)(iii).

          (e) Compensation Payable Upon Termination by Employer for Good Cause or Voluntarily by
Employee Absent Change in Control. If the employment of the Employee is
terminated for good cause under Section 8(b)(ii) of this Agreement, or if the Employee
voluntarily terminates his employment by written notice to the Employer under Section 8(a) of this
Agreement without reliance on Section 8(d), the Employer shall pay to the Employee any compensation
earned but not paid to the Employee prior to the effective date of such termination. Under such
circumstances, such payment shall be in full and complete discharge of any and all liabilities or
obligations of the Employer to the Employee hereunder, and the Employee shall be entitled to no
further benefits under this Agreement.

          (f) Release. Payment of any compensation to the Employee under this Section 8
following termination of employment shall be conditioned upon the prior receipt by the Employer of
a release executed by the Employee in substantially the form attached to this Agreement as Exhibit
A.

     9. Disclosure. The Employee agrees that during the term of his employment by the
Employer, he will disclose and disclose only to the Employer all ideas, methods, plans,
developments or improvements known by him which relate directly or indirectly to the business of
the Employer, whether acquired by the Employee before or during his employment by the Employer.
Nothing in this Section 9 shall be construed as requiring any such communication

9

 

where the idea,
plan, method or development is lawfully protected from disclosure as a trade secret of a third
party or by any other lawful prohibition against such communication.

     10. Confidentiality. The Employee agrees to keep in strict secrecy and confidence any
and all information the Employee assimilates or to which he has access during his employment by the
Employer and which has not been publicly disclosed and is not a matter of common knowledge in the
fields of work of the Employer. The Employee agrees that both during and after the term of his
employment by the Employer, he will not, without the prior written consent of the Employer,
disclose any such confidential information to any third person, partnership, joint venture,
company, corporation or other organization.

     11. Noncompetition and Nonsolicitation.

     The Employee acknowledges that for the purposes of this Section 11 and Sections 9 and 10 the
term “Employer” includes not only Chico’s, but also the White House|Black Market, Soma by Chico’s,
and any other separately organized divisions that may be established during the period of
employment. The Employee hereby acknowledges that, during and solely as a result of his employment
by the Employer, he may have received and shall continue to receive: (1) special training and
education with respect to the operations of a retail clothing chain and other related matters, and
(2) access to confidential information and business and professional contacts. In consideration of
the special and unique opportunities afforded to the Employee by the Employer as a result of the
Employee’s employment, as outlined in the previous sentence, the Employee hereby agrees as follows:

	 	a)  	During the term of the Employee’s employment, whether pursuant to this
Agreement, any automatic or other renewal hereof or otherwise, and, except as may be
otherwise herein provided, for a period of one (1) year after the termination of his
employment with the Employer, regardless of the reason for such termination, the
Employee shall not, directly or indirectly, enter into, engage in, be employed by or
consult with any specialty retail business which competes with the business of the
Employer by selling,
offering to sell, or soliciting offers to buy on behalf of any specialty retail
business, or by consulting with any specialty retail business, concerning the selling
of, any women’s apparel or intimates product substantially similar to those
sold or planned to be sold by the Employer. The Employee shall not engage in such
prohibited activities either as an individual, partner, officer, director, stockholder,
employee, advisor, independent contractor, joint venturer, consultant, agent, or
representative or salesman for any person, firm, partnership, corporation or other
entity so competing with the Employer. The restrictions of this Section 11 shall not be
violated by: (i) the ownership of no more than 2% of the outstanding securities of any
company whose stock is traded on a national securities exchange or is quoted in the
Automated Quotation System of the National Association of Securities Dealers (NASDAQ);
(ii) other outside business investments that do not in any manner conflict with the
services to be rendered by the Employee for the Employer and that do not diminish or
detract from the Employee’s ability to render his required attention to the business of
the Employer; or (iii) the Employee’s employment by (or association with) any entity 

10

 

	 	   	so
long as the Executive is not employed directly by the women’s apparel or intimate
products specialty store divisions thereof and no more than five percent (5%) of the
revenue of such entity under the Employee’s supervision is generated from women’s
apparel or intimate products specialty stores.
	 
	 	b)  	During his employment with the Employer and, except as may be otherwise herein
provided, for a period of two (2) years following the termination of his employment
with the Employer, regardless of the reason for such termination, the Employee agrees
he refrain from and will not, directly or indirectly, as an individual, partner,
officer, director, stockholder, employee, advisor, independent contractor, joint
venturer, consultant, agent, representative, salesman or otherwise solicit any
non-clerical employee of the Employer who was such an employee as of the date of the
Employee’s termination of employment to terminate his or her employment. Nothing herein
shall prevent the Employee from serving as a reference for any employee of the Employer
or from the general advertising for employees.
	 
	 	c)  	The period of time during which the Employee is prohibited from engaging in
certain business practices pursuant to Sections 11(a) or (b) shall be extended by any
length of time during which the Employee is in breach of such covenants.
	 
	 	d)  	It is understood by and between the parties hereto that the foregoing
restrictive covenants set forth in Sections 11(a) through (c) are essential elements of
this Agreement, and that, but for the agreement of the Employee to comply with such
covenants, the Employer would not have agreed to enter into this Agreement. Such
covenants by the Employee shall be construed as agreements independent of any other
provision in this Agreement. The existence of any claim or cause of action of the
Employee against the Employer, whether predicated on this Agreement, or otherwise,
shall not constitute a defense to the enforcement by the Employer of such covenants.
	 
	 	e)  	It is agreed by the Employer and Employee that if any portion of the covenants
set forth in this Section 11 are held to be invalid, unreasonable, arbitrary or against
public policy, then such portion of such covenants shall be considered divisible both
as to time and geographical area. The Employer and Employee agree that, if any court
of
competent jurisdiction determines the specified time period or the specified
geographical area applicable to this Section 11 to be invalid, unreasonable, arbitrary
or against public policy, a lesser time period or geographical area which is determined
to be reasonable, non-arbitrary and not against public policy may be enforced against
the Employee. The Employer and the Employee agree that the foregoing covenants are
appropriate and reasonable when considered in light of the nature and extent of the
business conducted by the Employer.

     12. Specific Performance. The Employee agrees that damages at law will be an
insufficient remedy to the Employer if the Employee violates the terms of Sections 9, 10 or 11 of
this Agreement and that the Employer would suffer irreparable damage as a result of such violation.
Accordingly, it is agreed that the Employer shall be entitled, upon application to a

11

 

court of
competent jurisdiction, to obtain injunctive relief to enforce the provisions of such Sections,
which injunctive relief shall be in addition to any other rights or remedies available to the
Employer. The Employee agrees to pay to the Employer all costs and expenses incurred by the
Employer relating to the enforcement of the terms of Sections 9, 10 or 11 of this Agreement,
including reasonable fees and disbursements of counsel (both at trial and in appellate
proceedings).

     13. Compliance with Other Agreements. The Employee represents and warrants that the
execution of this Agreement by him and his performance of his obligations hereunder will not
conflict with, result in the breach of any provision of or the termination of or constitute a
default under any Agreement to which the Employee is a party or by which the Employee is or may be
bound.

     14. Waiver of Breach. The waiver by the Employer of a breach of any of the provisions
of this Agreement by the Employee shall not be construed as a waiver of any subsequent breach by
the Employee.

     15. Binding Effect; Assignment. The rights and obligations of the Employer under this
Agreement shall inure to the benefit of and shall be binding upon the successors and assigns of the
Employer. It is expressly acknowledged that the provisions of Section 11 relating to
noncompetition, nonsolicitation and nonacceptance may be enforced by the Employer’s successors and
assigns. This Agreement is a personal employment contract and the rights, obligations and
interests of the Employee hereunder may not be sold, assigned, transferred, pledged or
hypothecated.

     16. Entire Agreement. This Agreement contains the entire agreement and supersedes all
prior agreements and understandings, oral or written, with respect to the subject matter hereof.
This Agreement may be changed only by an agreement in writing signed by the party against whom any
waiver, change, amendment, modification or discharge is sought.

     17. Headings. The headings contained in this Agreement are for reference purposes
only and shall not affect the meaning or interpretation of this Agreement.

     18. Governing Law. This Agreement shall be construed and enforced in accordance with
the laws of the State of Florida (except any choice of law provision of Florida law shall not apply
if the law of a state or jurisdiction other than Florida would apply thereby).

     19. Notice. All notices which are required or may be given under this Agreement shall
be in writing and shall be deemed to have been duly given when received if personally delivered;
when transmitted if transmitted by telecopy or similar electronic transmission method; one working
day after it is sent, if sent by recognized expedited delivery service; and five days after it is
sent, if mailed, first class mail, certified mail, return receipt requested, with postage prepaid.
In each case notice shall be sent to:

12

 

	 	 	 
	If to the Employee:

	 	Charles L. Nesbit, Jr.
	

	 	2750 Wellsprings Drive
	

	 	Pfafftown, NC 27040
	 
	 	 
	If to the Employer:

	 	Chico’s FAS, Inc.
	

	 	11215 Metro Parkway
	

	 	Ft. Myers, Florida 33912
	 
	 	 
	with a copy to:

	 	Gary I. Teblum, Esquire
	

	 	Trenam, Kemker, Scharf, Barkin,
	

	 	Frye, O’Neill & Mullis, P.A.
	

	 	Post Office Box 1102
	

	 	Tampa, Florida 33601

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

	 	 	 	 	 
	 	 	CHICO’S FAS, INC.
	 
	 	 	 	 
	

	 	By:	 	   /s/ Scott A. Edmonds
	

	 	 	 	 
	 
	 	 	 	 
	 	 	EMPLOYEE:
	 
	 	 	 	                  /s/
Charles L. Nesbit, Jr. 
	 	 	 
	 	 	Charles L. Nesbit, Jr.

13

 

EXHIBIT A

TO

EMPLOYMENT AGREEMENT WITH

CHARLES L. NESBIT, JR.

DATED AS OF                     , 2004

Release

     WHEREAS, Charles L. Nesbit, Jr. (the “Executive”) is an employee of Chico’s FAS, Inc., (the
“Company”) and is a party to the Employment Agreement dated August 4, 2004 (the “Agreement”);

     WHEREAS, the Executive’s employment has been terminated in accordance with Section 8___of the
Agreement; and

     WHEREAS, the Executive is required to sign this Release in order to receive the payment of any
compensation under Section 8 of the Agreement following termination of employment.

     NOW, THEREFORE, in consideration of the promises and agreements contained herein and other
good and valuable consideration, the sufficiency and receipt of which are hereby acknowledged, and
intending to be legally bound, the Executive agrees as follows:

     1. This Release is effective on the date hereof and will continue in effect as provided
herein.

     2. In consideration of the payments to be made and the benefits to be received by the
Executive pursuant to the Agreement, which the Executive acknowledges are in addition to payment
and benefits to which the Executive would be entitled to but for the Agreement, the Executive, for
the Executive and the Executive’s dependents, successors, assigns, heirs, executors and
administrators (and the Executive and their legal representatives of every kind), hereby releases,
dismisses, remises and forever discharges the Company, its predecessors, parents, subsidiaries,
divisions, related or affiliated companies, officers, directors, stockholders, members, employees,
heirs, successors, assigns, representatives, agents and counsel (collectively the “Released Party”)
from any and all arbitrations, claims, including claims for attorney’s fees, demands, damages,
suits, proceedings, actions and/or causes of action of any kind and every description, whether
known or unknown, which the Executive now has or may have had for, upon, or by reason of any cause
whatsoever (“claims”), against the Released Party, including but not limited to:

	 	(a)  	any and all claims arising out of or relating to Executive’s employment by or
service with the Company and the Executive’s termination from the Company.

A-1

 

	 	(b)  	any and all claims of discrimination, including but not limited to claims of
discrimination on the basis of sex, race, age, national origin, marital status,
religion or handicap, including, specifically, but without limiting the generality of
the foregoing, any claims under the Age Discrimination in Employment Act, as
amended, Title VII of the Civil Rights Act of 1964, as amended, the Americans with
Disabilities Act; and
	 
	 	(c)  	any and all claims of wrongful or unjust discharge or breach of any contract or
promise, express or implied.

    3. The Executive understands and acknowledges that the Company does not admit any violation of
law, liability or invasion of any of the Executive rights and that any such violation, liability or
invasion is expressly denied. The consideration provided for this Release is made for the purpose
of settling and extinguishing all claims and rights (and every other similar or dissimilar matter)
that the Executive ever had or now may have against the Company to the extent provided in this
Release. The Executive further agrees and acknowledges that no representations, promises or
inducements have been made that the Company other than as appear in the Agreement.

    4. The Executive further agrees and acknowledges that:

	 	(a)  	The Release provided for herein releases claims to and including the date of
this Release;
	 
	 	(b)  	The Executive has been advised by the Company to consult with legal counsel
prior to executing this Release, has had an opportunity to consult with and to be
advised by legal counsel of the Executive’s choice, fully understands the terms of this
Release, and enters into this Release freely, voluntarily and intending to be found.
	 
	 	(c)  	The Executive has been given a period of 21 days to review and consider the
terms of this Release, prior to its execution and that the Executive may use as much of
the 21 day period as the Executive desires; and
	 
	 	(d)  	The Executive may, within 7 days after execution, revoke this Release.
Revocation shall be made by delivering a written notice of revocation to the Chief
Financial Officer at the Company. For such revocation to be effective, written notice
must be actually received by the Chief Financial Officer at the Company no later than
the close of business on the 7th day after the Executive executes this Release. If the
Executive does exercise the Executive’s right to revoke this Release, all of the terms
and conditions of the Release shall be of no force and effect and the Company shall not
have any obligation to make payments or provide benefits to the Executive as set forth
in Sections 8 of the Agreement.

A-2

 

     5. The Executive agrees that the Executive will never file a lawsuit or other complaint
asserting any claim that is released in this Release.

     6. The Executive waives and releases any claim that the Executive has or may have to
reemployment after                                            .

     IN WITNESS WHEREOF, the Executive has executed and delivered this Release on the date set
forth below.

	 	 	 	 	 
	Dated:
	 	 	 	 
	

	 	 
	 	 
	

	 	 	 	Executive

A-3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00085-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00085-of-00352.parquet"}]]