Document:

SEC Connect

 

Exhibit 10.3

 

AMENDMENT NO. 17 TO LEASE

 

This
Amendment No. 17 to Lease ("Amendment No. 17") is entered into as
of the 14th day of April 2017 between GFE MacArthur Investments,
LLC, a Delaware limited liability company ("Landlord"), as
successor-in-interest to TPF Partners, a California general
partnership, and Autobytel Inc., a Delaware corporation
("Tenant").

 

RECITALS

 

A. 

Tenant is the
current Tenant, and Landlord is the current Landlord, under that
certain Lease dated April 3, 1997 as amended in Amendment No. 1 to
Lease dated July 9, 1998, Amendment No. 2 to Lease dated May 16,
2001, Amendment No. 3 to Lease dated May 16, 2001, Amendment No. 4
to Lease dated August 8, 2002, Amendment No. 5 to Lease dated
September 12, 2003, Amendment No. 6 to Lease dated January 6, 2005,
Amendment No. 7 to Lease dated March 14, 2005, Amendment No. 8 to
Lease dated July 7, 2005, Amendment No. 9 to Lease dated July 26,
2005, Amendment No. 10 to Lease dated December 1, 2005, Notice of
Lease Term Dates dated January 11, 2006, Amendment No. 11 to Lease
dated January 19, 2006, Lease Surrender and Termination Agreement
dated March 31, 2008, Amendment No. 12 to Lease dated February 6,
2009, Amendment No. 13 to Lease dated March 5, 2009, Amendment No.
14 to Lease dated November 29, 2010, Amendment No. 15 dated October
31, 2012, and Amendment No. 16 dated August 7, 2015 (collectively
the "Lease") covering certain Premises located at the second
(2nd),
third (3rd) and 4th floors at 18872
MacArthur Blvd., City of Irvine, County of Orange, State of
California (collectively the “Premises”) consisting of
approximately 39,361 rentable square feet, all as more particularly
set forth in the Lease.

 

B. 

Landlord and Tenant
desire to further amend the Lease on the terms and conditions set
forth here in this Amendment No. 17.

 

NOW, THEREFORE, in consideration of the
mutual covenants herein contained and for other good and valuable
consideration, the receipt and sufficiency of which are hereby
acknowledged, Landlord and Tenant agree as follows ( capitalized
terms used and not otherwise defined herein shall have the meanings
given in the Lease):

 

1.            

Extension of Lease
Term: The Term of the Lease is hereby extended for a period
of Thirty-Six (36) months commencing August 1, 2017 and expiring
July 31, 2020 (the "Extended Term").

 

2.            

Base Rent:
Base Rent for the Premises during the Extended Term shall be as
follows:

 

	

Period

	

Base Rent
PSF*

	

Monthly

	

August
1, 2017 - July 31, 2018

	

$2.00

	

$65,518.00

	

August
1, 2018 - July 31, 2019

	

$2.06

	

$67,483.54

	

August
1, 2019 - July 31, 2020

	

$2.12

	

$69,508.05

 

*
Landlord and Tenant acknowledge and agree that during the Extended
Term Tenant shall not be obligated to pay Base Rent or any
Additional Rent with respect to any of the Recapture Premises (as
defined in Section 6, below) and, accordingly, Base Rent and
Tenant's Proportionate Share shall be calculated based on 32,759
rentable square feet (rather than the 39,361 rentable square feet
currently comprising the Premises). Such 32,759 rentable square
feet used to calculate Base Rent and Tenant' Proportionate Share
during the Extended Term shall not be subject to adjustment except
for a potential downward adjustment as described in Section 6,
below.

 

3.            

Base Year:
Commencing August 1, 2017, Tenant’s Base Year shall be reset
to calendar year 2017, and Tenant shall have no obligation to pay
Operating Costs, Operating Expenses or other expense pass throughs
for the initial twelve (12) months of the Extended Term.
Additionally, during the Extended Term, Tenant shall not be
obligated to pay for any Operating Costs, Operating Expenses or
other expense pass throughs related to 1) Taxes, or 2) capital
improvements or other Major Expenditures. Tenant’s
Proportionate Share during the Extended Term shall be 65.38% (which
shall not be subject to adjustment except for a possible downward
adjustment as described in Section 6, below).

 

4.            

Security
Deposit: Landlord acknowledges that it is currently holding
a security deposit from Tenant in the amount of $48,912.00. No any
additional security deposit shall be required in connection with
this Amendment No. 17.

 

5.            

Condition of
Premises: Tenant acknowledges that Landlord has made no
representation and has given no warranty to Tenant regarding the
fitness of the Leased Premises for Tenant’s continued use,
and Tenant accepts the Premises in its “AS-IS”
condition and “WITH ALL FAULTS”. The foregoing shall
not limit Landlord’s obligations set forth in the Lease,
including, without limitation, Landlord's obligations with respect
to repair, maintenance, restoration and the provision of services
and utilities.

 

 

-1-

 

 

6.            

Recapture Premises
on 4th
Floor:

 

(a)           

Effective as of
August 1, 2017, Landlord shall have the right (but not the
obligation) to market up to 1⁄2 of the 4th floor (approx.
6,603 RSF), as generally depicted on Exhibit A attached hereto (the
"Recapture Premises"), for lease. The exact location and
configuration of the Recapture Premises shall be determined by
Landlord and Tenant using good faith efforts promptly following
Landlord’s design plan for multi-tenanting the 4th floor (i.e., location of demising
wall(s), multi-tenant corridor(s), exiting, access controls, HVAC
segregation, etc.). In that regard, the parties agree that the
Recapture Premises shall (i) be horizontally contiguous, (ii) not
render any of the remaining space on the 4th floor inaccessible
from a normally configured multi-tenant corridor, and (iii) not
adversely affect Tenant's occupancy, access or use of the remainder
of the Premises on the 4th floor or cause any
violations thereof with applicable laws (including, without
limitation, fire, life-safety and access codes). Any marketing to
or site visits by prospective tenants of the Recapture Premises
will be conducted in cooperation with Tenant to minimize any
disruption of or interference with Tenant’s business and use
of the Premises.

 

(b)           

From and after
August 1, 2017, and provided that the design plan as described
above has been completed and Landlord has commenced negotiations
(as evidenced by the receipt by or submittal from Landlord of a
bona fide draft letter of intent, term sheet, proposal or
specifically prepared and tailored lease document that Landlord is
willing to accept) with a prospective tenant or tenants for the
Recapture Premises, Landlord may, by written notice to Tenant (the
"Recapture Notice"), recapture the Recapture Premises on the date
set forth in the Recapture Notice (the "Recapture Date"), which
Recapture Date shall be not less than sixty (60) days after
Tenant's receipt of the Recapture Notice.

 

(c)           

If Landlord elects
to recapture the Recapture Premises as described above, (i) the
Lease shall terminate as to the Recapture Premises on the Recapture
Date (and the Lease, as amended by this Amendment No. 17, shall
continue thereafter in full force and effect as the remainder of
the Premises), and upon the request of either party, the parties
shall execute written confirmation of the same, (ii) on or before
the Recapture Date, Tenant shall remove its furniture and equipment
from the Recapture Premises and surrender the same to Landlord in
substantially the same condition as existing as of commencement of
the Extended Term, ordinary wear and tear, casualty, condemnation
and matters that are Landlord's obligation excepted, and (iii)
Landlord shall install, on a commercially reasonable basis, and at
Landlord's sole cost and expense, the corridor(s), demising
wall(s), access controls, HVAC segregation and other
multi-tenanting improvements contemplated by the design plan and as
otherwise necessary to create a multi-tenant floor and to separate
the Recapture Premises from the rest of the Premises (collectively,
the "Multi-Tenant Floor Work"). Landlord shall use commercially
reasonable efforts to minimize interference with Tenant's business
operations during or resulting from the Multi-Tenant Floor Work.
Any necessary relocation of Tenant's phone, data, cabling, utility
or other lines currently located in the Recapture Premises or
affected by the Multi-Tenant Floor Work shall be performed by
Landlord at its sole cost and expense pursuant to a schedule
mutually acceptable to Landlord and Tenant so that Tenant's
operations during normal business hours are not adversely
affected.

 

(d)           

After Landlord has
completed the Multi-Tenant Floor Work, Landlord shall, at Tenant's
request, have the usable and rentable square feet of the Recapture
Premises and the remainder of the Premises on the 4th floor measured by a
qualified office space measurement firm in accordance with BOMA and
provide a copy of such measurement to Tenant. If such measurement
indicates that the remainder of the Premises on the 4th floor is less than
6,603 rentable square feet, the Base Rent and Tenant's
Proportionate Share shall be adjusted to reflect such reduction. In
no event shall such measurement, however, result in any increase in
the Base Rent or Tenant's Proportionate Share.

 

7.            

Parking: In
common surface parking shall be provided to Tenant at a ratio of
four (4) stalls per 1,000 rentable square feet, at no charge, in
the existing parking area for the Premises. Such parking shall be
based on the rentable square footage of the entire current Premises
including the Recapture Premises. Subject to the conditions in
Section 6, in the event that Landlord elects to take possession of
the Recapture Premises, as of the Recapture Date Tenant’s
allocation of parking stalls shall be reduced to a ratio of four
(4) stalls per 1,000 rentable square feet, at no charge. Such
reduced parking shall be based on the rentable square footage of
the entire current Premises, not including the Recapture Premises.
Any redevelopment, demolition or construction in areas of Colton
Plaza shall not reduce the number of parking spaces available to
Tenant as set forth in this Section 7, and shall not impair
Tenant’s access or egress to or from, nor use of, such
existing parking area in any material way.

 

8.            

Options:
Upon acceptance and execution of this Amendment No. 17, Tenant
shall have no further options to extend the lease. Any references
in the Master Lease or prior amendments to an option to extend are
hereby rescinded by this Amendment No. 17.

 

9.            

Landlord’s
Right to Terminate: Upon acceptance and execution of this
Amendment No. 17, Landlord shall have no ongoing right to terminate
the Lease prior to the natural expiration on July 31, 2020. Any
references in the Master Lease or prior amendments to a Landlord
right to terminate are hereby rescinded by this Amendment No.
17.

 

10.         

Authority.
Each individual executing this Amendment No. 17 on behalf of Tenant
hereby represents and warrants (without any personal liability)
that Tenant is a duly formed and existing entity qualified to do
business in California and that Tenant has full right and authority
to execute and deliver this Amendment No. 17 and that each person
signing on behalf of Tenant is authorized to do so. Tenant shall,
promptly following Landlord's request therefor, deliver to Landlord
evidence of such formation, existence, qualification and authority.
Likewise, each individual executing this Amendment No. 17 on behalf
of Landlord hereby represents and warrants (without any personal
liability) that Landlord is a duly formed and existing entity
qualified to do business in California and that Landlord has full
right and authority to execute and deliver this Amendment No. 17
and that each person signing on behalf of Landlord is authorized to
do so. Landlord shall, promptly following Tenant's request
therefor, deliver to Tenant evidence of such formation, existence,
qualification and authority.

 

 

-2-

 

 

11.            

Attorneys'
Fees. If either party commences litigation against the other
for the specific performance of this Amendment No. 17, for damages
for the breach hereof or otherwise for enforcement of any remedy
hereunder, the parties hereto agree to and hereby do waive any
right to a trial by jury and, in the event of any such commencement
of litigation, the prevailing party shall be entitled to recover
from the other party such costs and reasonable attorneys' fees as
may have been incurred, whether at trial or on any appeal
therefrom, including any and all costs incurred in enforcing,
perfecting and executing such judgment.

 

12.            

Confirmations.
Tenant hereby certifies and confirms to Landlord that, to Tenant's
actual knowledge, as of Tenant's execution and delivery hereof,
Landlord is not in default under the Lease, as amended, and Tenant
has no claim, defense or offset with respect to the Lease, as
amended. Landlord hereby certifies and confirms to Tenant that, to
Landlord's actual knowledge, as of Landlord's execution and
delivery hereof, Tenant is not in default under the Lease, as
amended, and Landlord has no claim, defense or offset with respect
to the Lease, as amended.

 

13.            

Brokers.
Tenant represents and warrants to Landlord that Tenant has not
dealt with any real estate broker or agent in connection with this
Amendment No. 17 or its negotiation except for Landlord, Lee &
Associates, Inc. - Irvine, (“Landlord’s Agent”)
and CBRE (“Tenant’s Agent”). Tenant shall
indemnify, defend, protect and hold Landlord harmless from and
against any and all cost, expenses, claims, and liabilities
(including costs of suit and reasonable attorneys' fees) for any
compensation, commission or fees claimed by any other real estate
broker or agent in connection with this Amendment or its
negotiation by reason of any act of Tenant. Landlord shall
indemnify, defend, protect and hold Tenant harmless from and
against any and all cost, expenses, claims, and liabilities
(including costs of suit and reasonable attorneys' fees) for any
compensation, commission or fees claimed by any other real estate
broker or agent in connection with this Amendment or its
negotiation by reason of any act of Landlord. Landlord shall be
solely responsible for payment of a commission to Landlord's Agent
and Tenant's Agent pursuant to the terms of a separate written
agreement.

 

14.            

Confidentiality.
Tenant and Landlord shall keep confidential and shall not
intentionally and voluntarily disclose the terms and conditions set
forth in this Lease (except to disclose the location and size of
the Premises and the term of the Lease), including, without
limitation, the basic rent and additional rent and all other
financial terms, without the prior written consent of the other,
except: (1) to its directors, officers, partners, members,
managers, legal counsel, accountants, financial advisors and
similar professionals and consultants to the extent that Tenant or
Landlord deems it necessary or appropriate in connection with the
transactions contemplated hereunder (and each party shall inform
each of the foregoing parties of its obligations under this Section
and use reasonable efforts to secure the agreement of such parties
to be bound by the confidentiality terms hereof), (2) to
prospective assignees, sublessees, purchasers, lenders and/or
investors, or (3) as otherwise required by law or regulation,
including filings required (as determined by the filing party) by
applicable government agencies.

 

15.            

Entire
Agreement. lt is understood and acknowledged that there are
no oral agreements between the parties hereto affecting the Lease,
as amended, and the Lease, as amended, supersedes and cancels any
and all previous negotiations, arrangements, brochures, agreements
and understandings, if any, between the parties hereto or displayed
by Landlord to Tenant with respect to the subject matter thereof,
and none thereof shall be used to interpret or construe the Lease,
as amended. The Lease and any amendments or side letters or
separate agreements executed by Landlord and Tenant in connection
with the Lease, as amended, contain all of the terms, covenants,
conditions, warranties and agreements of the parties relating in
any manner to the rental, use and occupancy of the Premises, shall
be considered to be the only agreement between the parties hereto
and their representatives and agents. None of the terms, covenants,
conditions or provisions of the Lease, as amended, can be modified,
deleted or added to except in writing signed by the parties hereto.
All negotiations and oral agreements acceptable to both parties
have been merged into and are included herein. Any deletion of
language from the Lease, as amended, prior to its execution by
Landlord and Tenant shall not be construed to raise any
presumption, canon of construction or implication, including,
without limitation, any implication that the parties intended
thereby to state the converse of the deleted language.

 

16.            

Further
Assurances. Landlord and Tenant shall, upon request by the
other, execute and deliver such documentation and information and
take such other action as may be reasonably necessary to effectuate
the intent of this Amendment or to implement the provisions
hereof.

 

Except
as modified by Amendment No. 17, all terms set forth in the Lease,
as amended, continue to be in full force and effect.

 

 

[Signature Page
Follows]

 

 

 

-3-

 

 

IN WITNESS WHEREOF, the parties have
entered into this Amendment No. 17 as of the day and year first
written above.

 

	

LANDLORD:

 

GFE
MacArthur Investments, LLC,

a
Delaware limited liability company

 

 

By:
/s/Sean
Cao                                                 

 

Print
Name: Sean Cao  
                 
               
   

 

Title:
Manager                                                  

 

Date:
4/17/17                                                    

 

	

TENANT:

 

Autobytel
Inc.,

a
Delaware corporation

 

 

By:
/s/Jeffrey H.
Coats                                                     

 

Print
Name: Jeffrey H.
Coats                                           

 

Title:
President & Chief
Executive
Officer                     

 

Date:
April 14,
2017                                                       

 

 

By:
/s/Glenn E.
Fuller                                                     

 

Print
Name: Glenn E.
Fuller                                           

 

Title:
Executive Vice President,
Chief Legal and Administrative Officer and
Secretary

 

Date:
April 14,
2017

 

 

-4-

 

 

Exhibit A

 

General
Location and Configuration of Recapture Premises

 

 

 

 -5-EXHIBIT 10.1

SEPARATION AGREEMENT AND GENERAL RELEASE

SEPARATION AGREEMENT AND GENERAL RELEASE, dated as of the last date set forth on the signature page, between Movado Group, Inc., a New York corporation (the “Company”), and Ricardo Quintero Perez (“Quintero Perez”).

WITNESSETH:

WHEREAS, the Company has terminated Quintero Perez’s employment with the Company effective April 30, 2017.

NOW, THEREFORE, in consideration of the mutual covenants contained herein the parties hereby agree as follows.

1.            Cessation of Employment.  Quintero Perez hereby acknowledges and agrees that Quintero Perez’s employment with the Company has been terminated as of April 30, 2017.

2.            Review Period. Quintero Perez acknowledges that Quintero Perez has been advised to consult with an attorney before signing this Agreement and to the extent that Quintero Perez has wished to, has done so.

Quintero Perez also acknowledges and understands that Quintero Perez has been offered a period of 45 days to review and consider this document before signing it, and that Quintero Perez may revoke it within 7 days after signing it.  The Agreement shall not become effective or enforceable until the 7-day period has expired.

Revocation can be made only by delivering a written notice of revocation to Vivian D’Elia, Movado Group, Inc., 650 From Road, Suite 375, Paramus, New Jersey 07652-3556.  If it is revoked, Quintero Perez will not receive the payments or benefits described in paragraph 3 of this document.  Failure to deliver a written revocation notice or the acceptance of the Separation Benefits after 7 days will automatically signify that no revocation is being made and that this Agreement is fully effective and enforceable.

3.            Payments Contingent upon Quintero Perez’s execution, delivery and performance of this Agreement, and Quintero Perez’s failure to rescind this Agreement as described in paragraph 2 above, the Company will pay Quintero Perez severance of bi-weekly payments each in the amount of $29,807.69 less any required withholding taxes or other mandatory deductions, commencing May 1, 2017 and ending April 27, 2018 (the “End of the Severance Period”).  In addition, if Quintero Perez elects to continue Quintero Perez’s participation in the Company’s medical, dental and vision plan under the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”) following the termination of Quintero Perez’s employment with the Company, the Company will pay Quintero Perez’s costs for such COBRA coverage for the coverage period of May 1, 2017 through October 31, 2018 consistent with the Company’s practices during Quintero Perez’s employment (i.e., during this period the Company will pay Quintero Perez’s COBRA costs in excess of the active employee rate that would have applied if Quintero Perez’s employment had continued during such period).  It is understood that should Quintero Perez become covered under another medical, dental and vision plan, he will notify the Company and cease his COBRA coverage.  Quintero Perez hereby acknowledges that the aggregate payments and benefits he will receive under this Agreement greatly exceed the payments and benefits to which Quintero Perez would be entitled to under his employment agreement and under the Company’s benefit plans and policies, or otherwise, and that the payments and benefits provided for under this Agreement are in lieu of any payments or benefits that Quintero Perez might otherwise be entitled to in connection with Quintero Perez’s employment by the Company or the termination of such employment, including, but not limited to, payments or benefits relating to salary, bonus, accrued vacation, overtime, medical, dental, disability, pension or insurance.

 

4.            Additional Payments/Options.  In addition to the payments described in paragraph 3 above, Quintero Perez will be entitled to the additional payments specified below.

		a.	Accrued Vacation and Outplacement Assistance:  The Company will pay Quintero Perez Quintero Perez’s accrued and unused vacation as of April 30, 2017. The Company will also pay the cost of Quintero Perez’s outplacement assistance program that is selected by the Company.

		b.	Car Allowance:  The Company will pay Quintero Perez $1,000.00 per month during the 12-month severance period.

		c.	Equity:  The Company will pay for the value of the 8,227 unvested restricted stock units in respect of Movado common stock granted to Quintero Perez upon joining the Company on 7/17/14, which units will be forfeited by Quintero Perez in accordance with their terms.  The value of this grant for this purpose will be conclusively determined by multiplying the number of shares by the closing price of Movado common stock as of April 3, 2017 ($24.00), which totals $197,450.00.  The Company will also pay for the value of 4,562 unvested restricted stock units in respect of Movado common stock granted to Quintero Perez on 4/15/2016 as part of the fiscal 2015 Bonus, which units will be forfeited by Quintero Perez in accordance with their terms.  The value of this grant for this purpose will be conclusively determined by multiplying the number of shares by the closing price of Movado common stock as of April 3, 2017 ($24.00), which totals $109,500.00.

		d.	Lump-Sum Payment:  The Company will pay Quintero Perez a lump-sum payment of $10,000.00 promptly after the date hereof.

5.            Medical Claims.  Any medical claims incurred by Quintero Perez prior to April 30, 2017 and not previously reimbursed shall be processed in accordance with the Company’s medical, dental and vision plan upon receipt of appropriate documentation, consistent with past practice.  Quintero Perez hereby acknowledges that Quintero Perez’s rights under COBRA have been fully explained to Quintero Perez by the Company and that the Company has provided Quintero Perez with Quintero Perez’s COBRA notice and election forms.

6.            401(k) Plan.  The vested benefits to which Quintero Perez is entitled under the Company’s 401(k) Plan may remain invested under such Plan if Quintero Perez’s aggregate account balance is at least $1,000.00.  If such balance is less than $1,000.00, it will be paid to Quintero Perez or to such bank or other account as Quintero Perez shall direct, in accordance with the terms of such Plan. Any unvested benefits will be canceled as of April 30, 2017.

7.            Post-Termination Statements.  Quintero Perez agrees not to make at any time, directly or indirectly, in any individual or representative capacity whatsoever, any statement (under circumstances reasonably likely to become public or that Quintero Perez might reasonably expect to become public), whether oral or written, which is critical of or is (or is likely to be ) materially detrimental to the goodwill, business or reputation of the Company, or any subsidiary, division or affiliate of the Company; provided, however, that any truthful statement made by either Quintero Perez in good faith in any judicial proceeding shall not violate this paragraph 7.

8.            Release of Claims.  Subject only to paragraph 10 below, Quintero Perez, on behalf of Quintero Perez and Quintero Perez’s successors and assigns, hereby releases and forever discharges the Company and any parent, subsidiary, division, affiliated or related companies and their respective predecessors, successors and assigns, together with the officers, directors, employees, partners, agents, and attorneys of each of them (“Releasees”) from any and all liabilities, obligations, expenses, losses, damages, indemnities, claims, causes of action and demands, known or unknown, whether absolute or contingent, and whether based on contract, tort, statutory, or other legal or equitable theory of recovery which Quintero Perez has had, now has, or may have in the future with respect to any act, condition or event relating in any manner whatsoever, to the employment relationship (or termination thereof) between Quintero Perez and the Company which occurred or existed prior to the date of this Agreement, including 

 

without limitation the termination of that relationship. This release includes, but is not limited to, any claims Quintero Perez may have under the Age Discrimination in Employment Act, as amended (“ADEA”), which prohibits age discrimination in employment (“ADEA Waiver”).  Quintero Perez hereby agrees not to sue the Company or any of the other Releasees with respect to the foregoing except that Quintero Perez may bring a claim to challenge the validity of this Agreement under ADEA or to enforce Quintero Perez’s rights under this Agreement.  Quintero Perez agrees that, except as legally required by a subpoena or otherwise, Quintero Perez will not assist any other person or entity to pursue any claim against any of the Releasees.  The foregoing sentence shall not apply to a charge or claim filed with the EEOC; however, to the extent any such charge or claim is brought against any of the Releasees, Quintero Perez hereby expressly waives any claim to any form of monetary or other damages, or any other form of recovery or relief in connection with any such charge or claim.  Quintero Perez hereby warrants to the Company that Quintero Perez has not assigned to any other person or entity the claims which are the subject of this paragraph 8.

The Company, on behalf of itself, its successors and  assigns, hereby releases and forever discharges Quintero Perez and Quintero Perez’s estate, heirs, administrators, successors and assigns (“Quintero Perez Releasees”) from any and all liabilities, obligations, expenses, losses, damages, indemnities, claims, causes of action and demands, known or  unknown, whether absolute or contingent, and whether based on contract, tort, statutory, or other legal or equitable theory of recovery which the Company had had, now has, or may have in the future with respect to any act, condition or event relating in any manner whatsoever, to Quintero Perez’s activities as an employee of the Company or the employment relationship (or termination thereof) between Quintero Perez and the Company which occurred or existed prior to the date of this Agreement, including without limitation the termination of that relationship.  Notwithstanding the above, this release and discharge shall expressly exclude any fraudulent or willful misconduct by Quintero Perez discovered by the Company after the first date set forth on the signature page hereof.

9.            (a) Non-Solicitation. In furtherance and not in limitation of any existing obligation of Quintero Perez in this regard, Quintero Perez will not, for a period of six months after the End of the Severance Period, directly or indirectly, in any capacity, without the prior written consent of the Company (which may be granted or withheld in its sole and absolute discretion), employ, engage or retain any individual who is then an employee of the Company (or who had been an employee of the Company within six (6) months prior to April 30, 2017), or solicit, induce or persuade any such  individual to terminate his or her employment relationship with the Company.

(b) Non-Compete. In furtherance and not in limitation of any existing obligation of Quintero Perez in this regard, Quintero Perez will not, for a period of three (3) months after the End of the Severance Period, without the prior written consent of the Company (which may be granted or withheld in its sole and absolute discretion), carry on or engage or participate in the watch business in any country in which the Company’s watches had been distributed within six (6) months prior to April 30, 2017, including as a principal, partner, shareholder, consultant, contractor, agent or employee of any person, corporation, partnership or other entity.

10.            Claims Not Affected by Release.  Notwithstanding anything to the contrary contained herein, the release of claims set forth above does not apply to any claim for workers’ compensation under any federal or state workers’ compensation law nor does it waive Quintero Perez’s right to challenge the validity of Quintero Perez’s foregoing ADEA Waiver under paragraph 8 above or any other rights or claims that Quintero Perez may have under ADEA which arise after the dates on which Quintero Perez signs and re-executes this Agreement.

11.            Consequences of Violation of Covenants.  If Quintero Perez violates any of Quintero Perez’s covenants contained in this Agreement, including, but not limited to, those set forth in paragraph 9 above, Quintero Perez hereby agrees that Quintero Perez will pay all resulting costs incurred by any of the Releasees, including reasonable attorneys’ fees.  The immediately preceding sentence shall not apply to any challenge that Quintero Perez may make to the validity of Quintero Perez’s ADEA Waiver under paragraph 8 above.  As stated, while Quintero Perez may challenge the validity of Quintero Perez’s ADEA Waiver under paragraph 8 above, in the event Quintero Perez does so unsuccessfully, Quintero Perez may be held liable for the applicable Releasees’ attorneys' fees and costs to the same extent that successful defendants are allowed attorneys' fees under ADEA.

12.            Confidentiality.  Quintero Perez will not disclose the terms of this Agreement, or the facts and circumstances giving rise to this Agreement, for any reason to any person or entity not a party hereto unless such 

 

communication is (a) required by law or is necessary to comply with the law (e.g., communications to a tax preparer for purposes of submitting a tax return to the Internal Revenue Service) or to enforce the terms hereof, (b) to Quintero Perez’s legal counsel for the purposes of obtaining legal advice, or (c) to an immediate family member of Quintero Perez.  Quintero Perez hereby acknowledges that, in the course of Quintero Perez’s employment with the Company, Quintero Perez has had access to confidential information about, or with respect to, the Company and its subsidiaries (collectively, “Confidential Information” unless and until such information becomes public knowledge).  Quintero Perez hereby agrees that, without the prior written consent of the Company or except as may be required by applicable law, Quintero Perez will keep the Confidential Information confidential and will not divulge any of the Confidential Information to any other person. In addition, Quintero Perez agrees not to use the Confidential Information to directly or indirectly interrupt, disturb or interfere with the relationships of the Company and its subsidiaries with any customer, supplier, consultant, independent contractor or other business partner, or to compete unfairly with the Company and its subsidiaries.  If Quintero Perez believes Quintero Perez is, or may be, required by applicable law to divulge Confidential Information, or the terms or existence of this Agreement, Quintero Perez hereby agrees to inform the Company sufficiently in advance so that the Company may, if it so elects, contest the request for such Confidential Information or information concerning this Agreement.  Quintero Perez hereby agrees that all agreements, documents, drafts, computer discs, files, handwritten or typed notes and other writings relating to the Company or its subsidiaries, which were created by Quintero Perez or by any employee, agent or representative of the Company or any of its subsidiaries, or which were created by any other person at any time but to which Quintero Perez has had access solely as a result or in connection with Quintero Perez’s employment with the Company (all of the foregoing, collectively the “Files”), belong and will continue to belong to the Company or its subsidiaries, as appropriate, provided that Quintero Perez shall be entitled to retain Quintero Perez’s Smartphone (if applicable) after deleting all Confidential Information therefrom, which for the avoidance of doubt shall not entitle Quintero Perez to any wireless service.  Quintero Perez hereby covenants and represents to the Company that Quintero Perez has returned to the Company all of the Files and all equipment and any other materials belonging to the Company that are in Quintero Perez’s possession or under Quintero Perez’s control, including without limitation any corporate credit cards, identification cards, keys and computers.  Quintero Perez and the Company hereby agree that any breach or evasion of the provisions of this paragraph 1212 would result in immediate and irreparable harm to the Company, and that the Company shall be entitled to obtain an injunction and/or specific performance, as well as any other legal or equitable remedy necessary, in order to compel Quintero Perez’s compliance with the requirements of this paragraph12.

13.            Cooperation.  Quintero Perez hereby agrees to assist and to cooperate with the Company in connection with the defense or prosecution of any claim, threatened or asserted, that may be made against or by the Company, or in connection with any ongoing or future investigation or dispute or claim of any kind involving the Company, including any proceeding before any arbitral, administrative, judicial, legislative, or other body or agency, including testifying in any proceeding to the extent such claims, investigations or proceedings relate to services performed or required to be performed by Quintero Perez, pertinent knowledge possessed by Quintero Perez, or any act or omission by Quintero Perez.  Quintero Perez further hereby agrees that Quintero Perez will also perform all acts and execute and deliver any documents that may be reasonably necessary to carry out the provisions of this paragraph 13.

14.            Choice of Law and Forum.  This Agreement shall be interpreted and enforced in accordance with the laws of the State of New Jersey, without regard to its conflict-of-law principles.  Quintero Perez hereby agrees that any dispute concerning or arising out of this Agreement shall be tried exclusively in an appropriate state court in Bergen County, New Jersey or federal court in Essex County, New Jersey.

15.            Waiver of Trial By Jury.  Each party each hereby waives any right to trial by jury on any claim, counterclaim, setoff, demand action or cause of action whatsoever between them, including, without limitation, those arising out of or in any way pertaining or relating to (i) this Agreement, (ii) any dealings between Quintero Perez and the Company with respect to this Agreement, and (iii) Quintero Perez’s employment with the Company or termination thereof, whether now existing or hereafter arising, and whether sounding in contract, tort or otherwise.  Each party hereby agrees that either of them may file a copy of this Agreement with any court as written evidence of the knowing, voluntary, and bargained agreement between Quintero Perez and the Company irrevocably to waive trial by jury, and that any dispute or controversy whatsoever between Quintero Perez and the Company shall instead be tried in a court of competent jurisdiction by a judge sitting without a jury.

 

16.            Entire Agreement.  This Agreement incorporates all agreements and understandings between Quintero Perez and the Company with respect to the termination of Quintero Perez’s employment with the Company and supersedes all prior agreements between the Company and Quintero Perez and Quintero Perez hereby acknowledges that the Company has made no promises other than those expressly set forth in this Agreement.  No addition, modification, amendment or waiver of any part of this Agreement shall be binding or enforceable unless executed in writing by both parties hereto.

17.            Section 409A. This Agreement is intended to comply with Section 409A of the Internal Revenue Code of 1986, as amended (“Section 409A”) or an exemption thereunder and shall be construed and administered in accordance with Section 409A. Notwithstanding any other provision of this Agreement, payments provided under this Agreement may only be made upon an event and in a manner that complies with Section 409A or an applicable exemption. Any payments under this Agreement that may be excluded from Section 409A either as separation pay due to an involuntary separation from service or as a short-term deferral shall be excluded from Section 409A to the maximum extent possible. For purposes of Section 409A, each installment payment provided under this Agreement shall be treated as a separate payment. Any payments to be made under this Agreement upon a termination of employment shall only be made upon a "separation from service" under Section 409A. Notwithstanding the foregoing, the Employer makes no representations that the payments and benefits provided under this Agreement comply with Section 409A and in no event shall the Employer be liable for all or any portion of any taxes, penalties, interest or other expenses that may be incurred by the Employee on account of non-compliance with Section 409A.

18.            Severability. Should any provision of this Agreement be held by a court of competent jurisdiction to be enforceable only if modified, or if any portion of this Agreement shall be held as unenforceable and thus stricken, such holding shall not affect the validity of the remainder of this Agreement, the balance of which shall continue to be binding upon the parties with any such modification to become a part hereof and treated as though originally set forth in this Agreement.

The parties further agree that any such court is expressly authorized to modify any such unenforceable provision of this Agreement in lieu of severing such unenforceable provision from this Agreement in its entirety, whether by rewriting the offending provision, deleting any or all of the offending provision, adding additional language to this Agreement or by making such other modifications as it deems warranted to carry out the intent and agreement of the parties as embodied herein to the maximum extent permitted by law.

The parties expressly agree that this Agreement as so modified by the court shall be binding upon and enforceable against each of them. In any event, should one or more of the provisions of this Agreement be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provisions hereof, and if such provision or provisions are not modified as provided above, this Agreement shall be construed as if such invalid, illegal or unenforceable provisions had not been set forth herein.

BY SIGNING THIS SETTLEMENT AGREEMENT, QUINTERO PEREZ AFFIRMS:

QUINTERO PEREZ HAS READ IT;

QUINTERO PEREZ UNDERSTANDS IT, AND KNOWS THATQUINTERO PEREZ IS GIVING UP IMPORTANT RIGHTS;

QUINTERO PEREZ AGREES WITH EVERYTHING IN IT;

QUINTERO PEREZ HAS BEEN ADVISED TO CONSULT WITH QUINTERO PEREZ’S ATTORNEY PRIOR TO EXECUTING THIS SEPARATION AGREEMENT;

QUINTERO PEREZ HAS SIGNED THIS SEPARATION AGREEMENT KNOWINGLY AND VOLUNTARILY.

 

 

IN WITNESS WHEREOF, this Agreement is executed this 30th day of April 2017.

	 	MOVADO GROUP, INC.	 
	 	 	 	 	 
	 	 	 	 	 
	
 

	
By: 

	/s/ Vivian D’Elia	 
	 	 	Name: 	Vivian D’Elia	 
	 	 	Title: 	Senior Vice President, Human Resources	 
	 	 	Date: 	April 30, 2017 	 
	 	 	 	 	 
	 	RICARDO QUINTERO PEREZ   	 
	 	   	 
	 	Ricardo Quintero Perez	 
	 	 	 
	 	Date: April 30, 2017

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