Document:

joytoto_8k-ex1001.htm

    EXHIBIT
10.1

     

     

     

    Agreement
to Manufacture, Supply, and Market

     

    Among
Hyundai RFmon Corp. 

    and
Joytoto USA, Inc. 

    Dated
February 20, 2008

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Agreement
to Manufacture, Supply, and Market

    Among Hyundai
RFmon Corp.

    and

    Joytoto
USA, Inc.

     

    This
Agreement to Manufacture, Supply, Market (this “Agreement”)
is dated as of February 20, 2008, by and among

     

    Hyundai RFmon Corp., a
California corporation with its principal place of business located at 2001
Gateway Place, Suite 200, San Jose, California 95110 (“RFmon”), and

     

    Joytoto USA, Inc., a corporation organized and
operated under the laws  of  Nevada (“Nevada”),with its principal
place of business located at 3000 Scott Blvd., Suite 206,Santa Clara,
California 95054 (“JoyTOTO”).

     

    As used
in this Agreement, the term “Parties”
refers to RFmon and JoyTOTO.

     

    WHEREAS, RFmon manufactures
and markets, among other things, RFID readers and tags, EMI, and other
security products; and

     

    WHEREAS, JoyTOTO manufactures
and markets various electronic and digital products; and

     

    WHEREAS, RFmon has an existing
contract (the “Contract”)
with its major strategic alliance customers to supply ATM (automatic teller
machines), DVD download dispensers, smart teller machines, and kiosk machines
(“Products”) as those
Products can benefit from sophistication of JoyTOTO  manufacturing
know-how, starting with approximately Ten Million Dollars ($10,000,000),
and with option for more purchase orders subsequently, meeting the
specifications set forth in the purchase orders; and

     

    WHEREAS, such Products shall
include additional components, including, but not limited to, scanner
and printer for ATM, terabyte storage devices, management software,
etc.; and

     

    WHEREAS, JoyTOTO has a ISO
compliant factory (the “Factory”)
available directly or through subcontractors;

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
 

    WHEREAS, the Parties wish to
engage JoyTOTO to manufacture and supply the Products and devices for
the Contract on the terms and conditions set forth in this Agreement;
and

     

    NOW, THEREFORE, in
consideration of the foregoing premises and the mutual representations,
warranties, covenants, and agreements contained herein, the
adequacy and legal sufficiency of which are hereby acknowledged,
the Parties hereby agree as follows:

     

    ARTICLE
1 SCOPE, DURATION AND REVENUES

     

    1.1. Scope. This Agreement
shall cover the Products to be manufactured and supplied under the Contract
and such additional products as JoyTOTO or RFmon shall request
and JoyTOTO may agree to manufacture and supply.

     

    1.2. Term. Unless terminated
sooner as provided in Section 2.12 or extended by mutual agreement of the
Parties, this Agreement shall terminate on December 31,2012 (the “Scheduled
Termination Date”).

     

    1.3.
Revenues.

    (a) For manufacturing the
Products for the Contract, JoyTOTO agrees to manufacture and to supply
the Products for which JoyTOTO can recognize and qualify as revenues under
the Generally Acceptable Accounting Principles (“GAAP”).

     

    (b) Profit or Margin.

     

    (c) RFmon expects that during
the term of this Agreement (the “Term”) it
will generate additional business that it may seek for JoyTOTO support to
manufacture and to supply such Products to RFmon or RFmon customers. While
it is impossible to predict the amount of such future business, it is not
unreasonable to expect that such additional Contracts may approach or exceed
$100,000,000per year. RFmon and JoyTOTO will cooperate and insure
that JoyTOTO receives (the Contract) a fair and equitable percentage
of the manufacturing requirement (additional Business).

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    ARTICLE
2 GENERAL PROVISIONS

     

    2.1. Cooperation. The Parties
shall cooperate with each other to jointly decide on the details for
implementing this Agreement.

     

    2.2. Purchase
Orders. All
Products to be manufactured and supplied under this Agreement shall be ordered
on written purchase orders (“Purchase
Orders”) subject to JoyTOTO acceptance. Prior to placing any Purchase
Orders:

     

    (a) RFmon
shall have technical discussions with JoyTOTO concerning the format for the
Purchase Orders and the specifications for the Products so ordered; (b) the
Parties shall agree on the logistics of and schedule for manufacturing such
Products; and (c) RFmon and JoyTOTO shall forecast to the best of their
knowledge any additional Products which will be ordered in the
following3-month period.

     

    2.3. Delivery of Products.
With respect all Products manufactured and delivered under this
Agreement, the Parties shall agree in advance: (a) on the
production schedules; (b) quality assurance; (c) packaging
suitable for relevant specifications and international ocean
going ships; and (d) warranty and post-warranty service. The relevant
specifications shall mean specifications germane to specific customers and
their customary practices, which RFmon shall share with, and fully
knowledgeable by, JoyTOTO well in advance or within reasonable
time.

     

    2.4. No Sales
to Third Parties. JoyTOTO agrees that all
Products ordered under this Agreement shall be sold to RFmon. In the event
JoyTOTO customers, who are not the customers of RFmon (“Non-RFmon Customers”), have
demands for the Products, Parties shall cooperate with such Non-RFmon
Customers demands.

     

    2.5. Payment. (a) Manufacturing Cost. JoyTOTO
shall fund the cost of manufacturing all Products manufactured and
delivered under this Agreement.

    

    (b) Customer Payment Terms.
JoyTOTO and RFmon shall follow all applicable collection rules,
arrangement, and agreements with customers in collecting on the accounts
receivable
and customer payment terms (“Customer Payment

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (c) LockBox. RFmon and JoyTOTO
shall cause all Customer Payments to be deposited into the Lock Box
jointly managed by Parties or RFmon shall pay directly to JoyTOTO only
the portion of Customer Payments payable to JoyTOTO. In the event JoyTOTO
elects the LockBox option, then LockBox can be named RFmon-JoyTOTO, receive full
amount of all accounts receivable while giving JoyTOTO chances for full
revenue recognition and not giving RFmon a full control over lockbox. If the
lockbox cannot be defined to the satisfaction of JoyTOTO, RFmon shall make
separate payments to JoyTOTO.

    

    (d) The
Factory margin shall be decided on a case by case basis in consultation
with JOYTOTO and HGLLLP.

     

    2.6. Registration and Compliance with
U.S. Law. JoyTOTO shall be fully responsible for registering with
any registration requirement within the U.S., if any. JoyTOTO agrees
to comply with all laws, rules and regulations in the United States with
respect to the Products manufactured and delivered under this
Agreement.

     

    2.7. Indemnification Regarding
Intellectual Property. RFmon agrees to defend, indemnify and hold
harmless JoyTOTO and its respective affiliates, officers,
directors, shareholders, employees, partners, agents,
representatives, successors and assigns from and against all claims,
demands, obligations, losses, liabilities, damages, recoveries
and deficiencies, including interest, penalties and
reasonable attorneys’ fees, costs and expenses arising out
of, resulting from or related in any way whatsoever to any third party
claim that the Products infringe on the intellectual property of such third
party, other than those claims relating to any intellectual property of
JOYTOTO incorporated into the Products.

     

    JoyTOTO
agrees to defend, indemnify and hold harmless RFmon and its respective
affiliates, officers, directors, shareholders, employees, partners, agents,
representatives, successors and assigns from and against all claims,
demands, obligations, losses, liabilities, damages, recoveries
and deficiencies, including interest, penalties and
reasonable attorneys’ fees, costs and expenses arising out
of, resulting from or related in any way whatsoever to any third
party claim that the intellectual property of JOYTOTO incorporated into the
Products infringe on the intellectual

     

    2.8. Force Majeue. Any delay
in or failure of performance by any Party under this Agreement (other
than failure to pay amounts owed) will not be considered a breach of
this Agreement and will be excused to the extent caused by any occurrence
beyond the reasonable control of such Party, including but not limited to
fires, floods, epidemics, famines, earthquakes, hurricanes and other
natural disasters or acts of God; regulation or acts of any civilian or
military authority or act of any self-regulatory authority; wars, terrorism,
riots, civil unrest, sabotage, or theft or other criminal acts of third
parties; failure of electronic or mechanical equipment; and fluctuations in
or failures of electric power, heat, light ,telecommunications and
shortages of relied-upon services or supplies.

     

    2.9. Cooperation. (a) The
Parties shall cooperate with each other to maximize the amount of business in
addition to the Contract that can be awarded to JOYTOTO and manufactured
thereby.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (b) The Parties shall
cooperate with each other on technical matters, including the improvement
of existing manufacturing engineering for the Products.

    

    (c) The Parties shall
cooperate with each other in providing and obtaining information necessary
to comply with various rules and regulations applicable to the
Contracts.

    

    2.10. Assignment. (a) This
Agreement and all of the provisions hereof will be binding upon and inure
to the benefit of the Parties and their respective successors
and permitted assigns, but neither this Agreement nor any of the
rights, interests or obligations hereunder may be assigned by any Party (whether
voluntarily, involuntarily, by operation of law or otherwise) without the
prior written consent of all other Parties.

     

    (b) In
the event Customer imposes penalties either on JOYTOTO and/or RFmon,
Parties with penalties shall pay the penalty, if agreeable or unable to
dispute successful the penalties.

     

    2.11. Confidentiality. This
Agreement and the Transactions contemplated hereby shall be confidential
and shall not be disclosed except to counsel and except to the minimum
extent permitted by applicable law. The customer list, technical information,
production and marketing strategies, know-how and all confidential business
information of each Party shall remain the property of such Party and shall
not be used or disclosed by any other Party without the prior written
consent of the owner. Each Party shall cause its employees to comply with
the terms and provisions of this Agreement, including, without limitation,
the terms and provisions of this Section 2.11.

     

    2.12. Termination. (a) This
Agreement may be terminated by the mutual agreement of the Parties
expressed in a written termination agreement or RFmon may unilaterally
terminate JOYTOTO or JoyTOTO terminate RFmon as per and subject to other
terms hereon.

    

    (b) This Agreement may also be
terminated by any Party upon the occurrence of an Event of Default
specified in Section 2.12 (c)(i) or Section 2.12(c)(iii) as to
any other Party and shall automatically terminate upon the occurrence
of an Event of Default specified in Section2.12(b)(ii) as to any other Party. In
the event of any termination initiated by either JOYTOTO or RFmon or
both, the entire assignment shall be cancelled, terminated, and return
to RFmon.

    

    (c) As used in the Agreement,
an Event of Default with respect to any Party shall mean:

    

    (i) such Party shall fail to
perform any of its obligation under this Agreement and such failure
shall continue for a period of 30 days after such Party shall have
received notice of such failure from any other Party; or

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (ii) such Party (or a material
subsidiary of such Party) shall make an assignment for the benefit
of creditors, or admit in writing its inability to pay its debts as
they mature or become due, or shall petition or apply for the appointment
of a trustee or other custodian, liquidator or receiver of such Party (or a
material subsidiary of such Party) or of any substantial part of its assets
or shall commence any case or other proceeding relating
to its assets under any bankruptcy, reorganization, arrangement,
insolvency, readjustment of debt, dissolution or liquidation or similar law of
any jurisdiction, or shall take any action to authorize or
in furtherance of any of the foregoing; or any such petition or
application shall be filed or any such case or other proceeding shall be
commenced against such Party (or a material subsidiary of such Party), and
the same shall not have been dismissed within 60 days of the filing or
commencement thereof or such Party (or a material subsidiary of such Party)
shall indicate its approval thereof, consent thereto or acquiescence
therein; or a decree or order shall be entered appointing any such trustee,
custodian, liquidator or receiver or adjudicating such Party (or a material
subsidiary of such Party)bankrupt or insolvent, or approving a petition in any
such case or other proceeding, or a decree or order for relief shall
be entered in respect of such Party (or a material subsidiary of such
Party) in an involuntary case under any such bankruptcy or insolvency laws;
or

     

    (iii) such Party (or a
material subsidiary of such Party) shall take any corporate action to
liquidate its assets, dissolve or sell all or substantially all of
its assets or capital stock, or otherwise, or shall take any corporate
action to consolidate or merge with or into any other corporation or
business entity unless such Party shall be the surviving legal entity of
such consolidation or merger.

     

    Section 2.13. Damages for Breach of
this Agreement. Each Party shall be liable to the other Parties for
any losses suffered by the other Parties as the result of the breach
of this Agreement by the breaching Party. The extent of such liability shall be
comparable to the standard set forth in Section 2.7.

     

    Section 2.14. Amendment
and Modification. Subject to applicable law, this Agreement may be
amended or modified by the Parties at any time with respect to any of the
terms contained herein; provided, however, that all
such amendments and modifications must be in writing and duly executed by
all of the Parties hereto.

     

    Section 2.15. Waiver of Compliance;
Consents. Any failure of a Party to comply with any obligation,
covenant, agreement or condition herein may be expressly waived in
writing
by the Party or Parties entitled hereby to such compliance, but such waiver
or failure to insist upon strict compliance with such obligation, covenant,
agreement or condition will not operate as a waiver of, or
estoppels with respect to, any subsequent or other failure. No single or
partial exercise of a right or remedy will preclude any other or further
exercise thereof or of any other right or remedy hereunder. Whenever this
Agreement requires or permits the consent by or on behalf of a Party, such
consent will be given in writing in the same manner as for waivers of
compliance.

     

    Section 2.16. No Third Party
Beneficiaries. Nothing in this Agreement will entitle any person or
entity (other than a Party hereto and its respective successors
and assigns permitted hereby) to any claim, cause of action, remedy or
right of any kind.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    Section 2.17. Notices.
All notices, requests, demands and other communications required or
permitted hereunder will be made in writing and will be deemed to have been
duly given and effective: (i) on the date of delivery, if delivered
personally; (ii) on the earlier of the fourth(4th) day after mailing or the date
of the return receipt acknowledgement, if mailed, postage prepaid, by
certified or registered air mail, return receipt requested; or (iii)on the
date of transmission, if sent by facsimile, telecopy, telegraph, telex or
other similar telegraphic communications equipment. Each Party shall afford
the other Party with advance notification of any change in address or
contact information.

     

    3. Non-Disclosure, Non-Circumvention,
and Invention Parties agree to sign
non-disclosure, non-competition, non-circumvention, and invention transfer
agreement.

     

    If to
JOYTOTO: With a copy
to:

    JoyTOTO
USA, Inc.

    3000
Scott Blvd., Suite 206, Santa Clara, California 95054 Telephone:
408-970-8050

    Fax:
408-970-8055

    Email:
dank@joytoto.com

     

    
      	If to
    RFmon: 	With a copy
      to: 
	2001 Gateway Place,
      Suite 200,San Jose, California 95110 	 
	Telephone: 	 
	Fax: 	 
	
              Email: 

            	 

    

     

    Section 2.18. Governing Law.
This
Agreement and the legal relations among the Parties hereto will be
governed by and construed in accordance with the internal substantive laws of
the State of California (without regard to the laws of conflict that might
otherwise apply) as to all matters, including without limitation matters of
validity, construction, effect, performance and remedies.

     

    Section 2.19. Counterparts.
This Agreement may be executed simultaneously in one or more counterparts, each
of which will be deemed an original, but all of which together will constitute
one and the same instrument.

     

    Section 2.20. Facsimile and Scanned
Execution. Receipt by any Party of a counterpart of this Agreement
manually signed and then scanned electronically and emailed to the other Parties
or manually signed and then sent by facsimile transmission to the other Parties
shall, for all purposes, be deemed to be an original counterpart with the same
force and effect as the manually signed counterpart from which it was
electronically reproduced.

     

    Section 2.21. Headings. The
headings of the Articles and Sections of this Agreement are inserted for
convenience only and will not constitute a part hereof.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    Section 2.22. Entire
Agreement. This Agreement embodies the entire agreement and understanding
of the Parties in respect of the transactions contemplated by this Agreement
(the “Transactions”).
There are no restrictions, promises, warranties, agreements, covenants or
undertakings, other than those expressly set forth or referred to in this
Agreement. This Agreement supersedes all prior agreements and understandings
between or among the Parties with respect to the Transactions. Provisions of
this Agreement will be interpreted to be valid and enforceable under applicable
law to the extent that such interpretation does not materially alter this
Agreement; provided,
however, that if any such provision becomes invalid
or unenforceable under applicable law such provision will be stricken to the
extent necessary and the remainder of such provisions and the remainder of this
Agreement will continue in full force and effect.

     

    IN WITNESS WHEREOF, the
Parties hereto have caused this Agreement to be duly executed as of the day and
year first above written and to be amended and restated as of the day and year
second above written. Hyundai RFmon Corp. JoyToto Company Ltd.

     

     

    By:     /s/ Young
Yoo                  

              
Young Yoo

              
President 

    Date:
___________________Filed by Bowne Pure Compliance

EXHIBIT 10.11

EMPLOYMENT AGREEMENT

THIS
EMPLOYMENT AGREEMENT is made as of the 3rd
day of June 2008, by and between GARY MERRY
(“Employee”) and JOS. A. BANK CLOTHIERS, INC. (“Employer” or “Company”).

FOR GOOD AND VALUABLE CONSIDERATION, the receipt and adequacy of which are hereby
acknowledged, Employer hereby agrees to employ Employee as an Executive Vice President, and
Employee hereby agrees to be and remain in the employ of Employer, upon the terms and conditions
hereinafter set forth:

1. EMPLOYMENT PERIOD. Subject to earlier termination as set forth in this Agreement, the
period of employment under this Agreement (the “Employment Period”) shall be from the date hereof
through January 31, 2010.

2. DUTIES AND RESPONSIBILITIES.

2.1 General. During the Employment Period, Executive shall (i) have the title of
Executive Vice President and (ii) devote substantially all of his business time and expend his best
efforts, energies and skills to the business of the Company. Executive shall perform such duties,
consistent with his status as Executive Vice President, as he may be assigned from time to time by
Employer’s Chief Executive Officer (the “Chief Executive Officer”).

2.2 Location of Executive Office. The Company will maintain its principal executive
offices at a location in the Baltimore, Maryland metropolitan area. Executive shall not be required
to perform services for the Company at any other location, except for services rendered in
connection with reasonably required travel on Company business.

3. COMPENSATION AND RELATED MATTERS.

3.1 Base Salary. Employer shall pay to Executive during the Employment Period an
annual base salary (the “Base Salary”) of $355,000. The Base Salary for each year shall be payable
in installments in accordance with the Company’s policy on payment to executives in effect from
time to time.

3.2 Annual Bonus. For fiscal year 2008 (ending January 31, 2009) and for each other
fiscal year that begins during the Employment Period (each such fiscal year, a “Bonus Year”),
Executive shall be eligible to receive a bonus of up to 65% of Base Salary (each, a “Bonus”)
conditioned upon the satisfaction of (a) Company performance goals established by the Compensation
Committee of the Board of Directors of the Company (the “Committee”) for such Bonus Year and (b)
personal performance goals approved by the Chief Executive Officer and the Committee for such Bonus
Year. Company and personal performance goals are herein referred to collectively as the
“Performance Goals”. The Performance Goals for each Bonus Year shall be established as soon as
possible following the beginning of such Bonus Year.

 

 

The Bonus earned for any Bonus Year shall be payable promptly following the determination thereof, but in no
event later than 90 days following the end of each Bonus Year. If (a) the Employment Period shall
expire or terminate and (b) Employee is entitled to payment of a bonus pursuant to Section 5
hereof, the Bonus payable for the Bonus Year in which the Employment Period terminates or expires
shall equal the Bonus that would have been paid had the Employment Period not so terminated or
expired, multiplied by a fraction, the numerator of which shall be the number of days of the
Employment Period within the Bonus Year and the denominator of which shall be 365. For the
purposes of determining the amount of Bonus payable pursuant to the immediately preceding sentence,
it shall be assumed that all conditions to payment based upon performance by the Executive (e.g.
personal performance goals) have been satisfied. Notwithstanding anything to the contrary
contained herein or in the Employer’s Bonus Plan, in the event (y) the Employment Period shall end
for any reason whatsoever on a day prior to payment to Executive of a Bonus for the last full Bonus
Year contained within the Employment Period, and (z) Executive would have been entitled to receive
a Bonus for such last full Bonus Year had the Employment Period not ended — then, Employer
shall pay to Executive the Bonus for such last full Bonus Year as and when such Bonus would have
been paid had the Employment Period not ended.

3.3 Other Benefits. During the Employment Period, subject to, and to the extent
Executive is eligible under their respective terms, Executive shall be entitled to receive such
fringe benefits as are, or are from time to time hereafter, generally provided by Employer to
Employer’s senior management employees (other than those provided under or pursuant to separately
negotiated employment agreements or arrangements).

3.4 Vacation. Executive shall be entitled to 20 days of vacation during each 12-month
vacation accrual period, which days shall accrue in accordance with the Company’s vacation policy
in effect from time to time for its senior executive officers. Vacations shall be taken at such
time or times as shall not unreasonably interfere with Executive’s performance of his duties under
this Agreement. The number of vacation days shall be prorated for any 12-month vacation accrual
period not wholly within the Employment Period. Upon termination of Executive’s employment
pursuant to Section 4 for any reason whatsoever, Employer shall pay Executive, in addition to any
termination compensation provided for under Section 5, an amount equivalent to Executive’s per diem
compensation at the then-current Base Salary rate multiplied by the number of unused vacation days,
including any carry-over, accrued by Executive as of the date of termination.

3.5 Car Allowance. In addition to such other compensation as may be due and payable
hereunder, Employer shall pay to Executive a car allowance in the amount of $800.00 per month
during the Employment Period.

4.
TERMINATION OF EMPLOYMENT PERIOD.

4.1. Termination without Cause or Good Reason. Employer or Employee may terminate the
Employment Period at any time without cause or without good reason upon 60 days notice.
Notwithstanding the forgoing, Employer shall have the right to terminate the Employment Period
without cause upon less than 60 days notice by paying to Executive, in addition to such other
termination compensation as may be payable pursuant to Section 5.1, an amount equal to Executive’s
then-current per diem Base Salary multiplied by the difference between 60 and the number of days
notice given.

 

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4.2 Termination by Employer for Cause. Employer may terminate the Employment Period in
accordance with this Section 4.2 at any time for cause. For the purpose of this Section 4.2,
“cause” shall mean any of the following:

a) the conviction of Executive in a court of competent jurisdiction of a crime
constituting a felony in such jurisdiction involving money or other property of the Company
or any of its affiliates or any other felony or offense involving moral turpitude;

b) the willful commission of an act not approved of or ratified by the Chief Executive
Officer involving a material conflict of interest or self-dealing relating to any material
aspect of the Company’s business or affairs;

c) the willful commission of any act of fraud or misrepresentation (including the
omission of material facts) provided that such act relates to the business of the Company
and would materially and negatively impact upon the Company ; or

d) the willful and material failure of Executive to comply with the lawful orders of
the Chief Executive Officer, provided such orders are consistent with Executive’s duties,
responsibilities and/or authority as Executive Vice President of the Company.

In the event Employer shall elect to pursue a termination for cause, Employer shall deliver to
Executive a written notice from the Chief Executive Officer setting forth with reasonable
particularity the grounds upon which the Chief Executive Officer has found cause for termination.
In the event such grounds are predicated upon acts or omissions as set forth in paragraphs (b), (c)
or (d) above, Executive shall have thirty (30) days, or such longer period as may be necessary
provided Executive has commenced and is diligently proceeding, to cure or eliminate the cause for
termination. In the event Executive has failed to timely cure or eliminate the cause for
termination as set forth in the immediately preceding sentence, or in the event the grounds for
termination are predicated upon conviction of Executive as set forth in paragraph (a) above, the
Company, acting by and through the Chief Executive Officer, shall have the right to immediate
terminate Executive for cause.

4.3. Termination by Employee for Good Reason. Executive may, at any time during the
Employment Period by notice to Employer, terminate the Employment Period effective immediately for
“good reason”. For the purposes hereof, “good reason” means any material breach by Employer of any
provision of this Agreement which, if susceptible of being cured, is not cured within 30 days of
delivery of notice thereof to Employer by Executive; it being agreed, however, that the foregoing
30 day cure period shall not be applicable to any failure to pay timely (or any reduction in)
compensation or benefits paid or payable to Executive pursuant to the provisions of Section 3
hereof. Without limitation of the generality of the foregoing, each of the following shall be
deemed to be a material breach of this Agreement by Employer: (x) any
failure to pay timely (or any reduction in) compensation (including benefits) paid or payable
to Executive pursuant to the provisions of Section 3 hereof; (y) any reduction in the duties,
responsibilities or perquisites of Executive as provided in this Agreement and (z) any transfer of
the Company’s principal executive offices outside the geographic area described in Section 2.2
hereof or requirement that Executive principally perform his duties outside such geographic area.

 

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4.4 Disability. During the Employment Period, if, as a result of physical or mental
incapacity or infirmity (including alcoholism or drug addiction), Executive shall be unable to
perform his material duties under this Agreement for (i) a continuous period of at least 180 days,
or (ii) periods aggregating at least 270 days during any period of 12 consecutive months (each a
“Disability Period”), and at the end of the Disability Period there is no reasonable probability
that Executive can promptly resume his material duties hereunder pursuant hereto, Executive shall
be deemed disabled (the “Disability”) and Employer, by notice to Executive, shall have the right to
terminate the Employment Period for Disability at, as of or after the end of the Disability Period.
The existence of the Disability shall be determined by a reputable, licensed physician mutually
selected by Employer and Executive, whose determination shall be final and binding on the parties,
provided, that if Employer and Executive cannot agree upon such physician, such physician shall be
designated by the then acting President of the Baltimore City Medical Society, and if for any
reason such President shall fail or refuse to designate such physician, such physician shall, at
the request of either party, be designated by the American Arbitration Association. Executive
shall cooperate in all reasonable respects to enable an examination to be made by such physician.

4.5 Death. The Employment Period shall end on the date of Executive’s death.

5. TERMINATION COMPENSATION; NON-COMPETE.

5.1 Termination Without Cause by Employer or for Good Reason by Executive. If the
Employment Period is terminated by Employer pursuant to the provisions of Section 4.1 hereof or by
Executive pursuant to the provisions of Section 4.3 hereof, Employer will pay to Executive (a) Base
Salary for a period of twelve (12) months following the date of termination (calculated at the Base
Salary rate in effect as of the date of termination) payable in equal installments at the times
Base Salary would have been paid had the Employment Period not been terminated; (b) when and if due
pursuant to the provisions of Section 3.2 hereof, the prorated Bonus for the then current Bonus
Year and (c) if applicable, the Bonus for the last full Bonus Year pursuant to Section 3.2.
Employer shall have no obligation to continue any other benefits provided for in Section 3 past the
date of termination, except as provided in Section 3.4.

5.2 Certain Other Terminations. If the Employment Period is terminated by Employer
pursuant to the provisions of Section 4.2, by Executive pursuant to Section 4.1, for Disability
pursuant to the provisions of Section 4.4 or as a result of the death of Executive as set forth in
Section 4.5, Employer shall pay to Executive (a) Base Salary through the date of termination, (b)
in the case of termination as a result of a Disability or the death of Executive, when and if due
pursuant to provisions of Section 3.2, the prorated Bonus for the Bonus Year in which the date of
termination occurred and (c) if applicable, the Bonus for the last full Bonus Year pursuant to
Section 3.2. Employer shall have no obligation to continue any other benefits provided for in
Section 3 past the date of termination, except as provided in Section 3.4.

 

4

 

5.3 Expiration at Election of Employer. If the Employment Period expires on its then
stated expiration date without Employer having offered to Executive at least a one year renewal or
extension of the Employment Period on its then current terms, Employer shall pay to Executive (a)
Base Salary for the twelve (12) month period following the date of termination (calculated at the
Base Salary rate in effect as of the date of termination), payable in equal installments at the
times Base Salary would have been paid had the Employment Period not been terminated, (b) when and
if due pursuant to the provisions of Section 3.2, the Bonus for the Bonus Year in which the
Employment Period expired prorated as provided in said Section 3.2 and (c) if applicable, the Bonus
for the last full Bonus Year pursuant to Section 3.2. Employer shall have no obligation to
continue any other benefits provided for in Section 3 past the date of termination, except as
provided in Section 3.4.

5.4 No Other Termination Compensation. Executive shall not, except as set forth in
this Section 5 and in Section 3.4, be entitled to any compensation following termination of the
Employment Period, except as otherwise provided in any stock options granted by Employer to
Executive.

5.5 Mitigation. Executive shall not be required to mitigate the amount of any
payments or benefits provided for hereunder upon termination of the Employment Period by seeking
employment with any other person, or otherwise, nor shall the amount of any such payments or
benefits be reduced by any compensation, benefit or other amount earned by, accrued for or paid to
Executive as the result of Executive’s employment by or consultancy or other association with any
other person. Without any obligation of Employer to provide any benefits to Executive after
termination of the Employment Period except as specifically set forth herein, any medical, dental
or hospitalization insurance or other benefits provided to Executive with his employment by or
consultancy with an unaffiliated person shall be primary to any benefits provided to Executive
pursuant to this Agreement for the purposes of coordination of benefits.

5.6 Non-Compete. For the 6 month period following the termination or expiration of
the Employment Period for any reason whatsoever (other than a termination by Executive pursuant to
Section 4.1, in which case the applicable period shall be one year), and for so long as Employer is
making and the Executive is accepting the payments required to be made to Executive pursuant to
this Section 5, Executive shall not, directly or indirectly, (a) engage in any activities that are
in competition with the Company in any geographic area within 50 miles of the location of any
Company store (owned or franchised) as of the date of termination of Executive; (b) engage in any
catalog business that focuses on the sale of men’s clothing, (c) solicit any customer of the
Company or (d) solicit any person who is then employed by the Company or was employed by the
Company within one year of such solicitation to (i) terminate his or her employment with the
Company, (ii) accept employment with anyone other than the Company, or (iii) in any manner
interfere with the business of the Company. Executive acknowledges and agrees that in the event of
any violation or threatened violation by Executive of his obligations under the preceding, Employer
shall be entitled to injunctive relief without any necessity to post bond. Executive acknowledges
and agrees that the Company’s catalogue business is competitive with retail store business offering
similar product lines.

 

5

 

6. INDEMNIFICATION.

The Company shall indemnify and hold Executive harmless from and against any expenses
(including attorneys’ fees of the attorneys selected by Executive to represent him, which shall be
advanced as incurred), judgements, fines and amounts paid in settlement incurred by him by reason
of his being made a party or threatened to be made a party to any threatened, pending or completed
action, suit or proceeding, whether civil, criminal, administrative or investigative, by reason of
any act or omission to act by Executive during the Employment Period or otherwise by reason of the
fact that he is or was a director or officer of Employer or any subsidiary or affiliate included as
a part of the Company, to the fullest extent and in the manner set forth and permitted by the
General Corporation Law of the State of Delaware and any other applicable law as from time to time
in effect. The provisions of this Section 6 shall survive any termination of the Employment Period
or any deemed termination of this Agreement.

7. MISCELLANEOUS.

7.1 Notices. Any notice, consent or authorization required or permitted to be given
pursuant to this Agreement shall be in writing and sent to the party for or to whom intended, at
the address of such party set forth below, by registered or certified mail, postage paid (deemed
given five days after deposit in the U.S. mails) or personally, via commercial delivery or by
facsimile transmission (deemed given upon receipt or refusal), or at such other address as either
party shall designate by notice given to the other in the manner provided herein.

	 	 	 
	If to Employer:

	 	Jos. A. Bank Clothiers, Inc.
	 

	 	500 Hanover Pike
	 

	 	Hampstead, Maryland 21074-2095
	 

	 	Attn: Secretary
	 
	 	 
	If to Executive:

	 	at his home address as reflected in the Company’s books and records

7.2 Legal Fees. The Company shall pay the reasonable legal fees and expenses incurred
by Executive in connection with any amendment or modification hereof or enforcement of Executive’s
rights hereunder.

7.3 Taxes. Employer is authorized to withhold from any compensation or benefits
payable hereunder to Executive such amounts for income tax, social security, unemployment
compensation and other taxes as shall be necessary or appropriate in the reasonable judgement of
Employer to comply with applicable laws and regulations.

7.4 Governing Law. This Agreement shall be governed by and construed and enforced in
accordance with the laws of the State of Maryland applicable to agreements made and to be performed
therein.

 

6

 

7.5 Arbitration. Any dispute or controversy arising under or in connection with this
Agreement shall be settled exclusively by arbitration in Baltimore, Maryland in accordance with the
rules of the American Arbitration Association then in effect. Judgement may be entered on the
arbitration award in any court having jurisdiction; provided, however, that
Executive shall be entitled to seek specific performance of his right to be paid until expiration
of the Employment Period during the pendency of any arbitration.

7.6 Headings. All descriptive headings in this Agreement are inserted for convenience
only and shall be disregarded in construing or applying any provision of this Agreement.

7.7 Counterparts. This Agreement may be executed in counterparts, each of which shall
be deemed to be an original, but all of which together shall constitute one and the same
instrument.

7.8 Severability. If any provision of this Agreement, or any part thereof, is held to
be unenforceable, the remainder of such provision and this Agreement, as the case may be, shall
nevertheless remain in full force and effect.

7.9 Entire Agreement and Representation. This Agreement contains the entire agreement
and understanding between Employer and Executive with respect to the subject matter hereof. No
representations or warranties of any kind or nature relating to the Company or its several
businesses, or relating to the Company’s assets, liabilities, operations, future plans or prospects
have been made by or on behalf of Employer to Executive. This Agreement supersedes any prior
agreement between the parties relating to the subject matter hereof.

7.10 Successor and Assigns. This Agreement shall be binding upon and inure to the
benefit of each of the parties hereto and their respective successors, heirs (in the case of
Executive) and assigns.

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

	 	 	 	 	 	 	 	 	 
	JOS. A. BANK CLOTHIERS, INC.	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ David E. Ullman	 	 	 	/s/ Gary Merry	 	 
	 

	 	 

David E. Ullman,
	 	 
	 	 

GARY MERRY

	 

	 	Executive Vice President-Chief Financial Officer	 	 	 	 	 	 

 

7

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