Document:

CHRS-01.28.12_Q4-EX10.2.59

EXHIBIT 10.2.59

        

Fashion Bug Retail Companies, LLC
450 Winks Lane
Bensalem, PA 19020

December 13, 2011

MaryEllen MacDowell

RE:  Project Incentives

Dear MaryEllen, 

As you are aware, Charming Shoppes, Inc. has announced the planned divestiture of its Fashion Bug business.  It is possible, but not necessarily the case, that this process will result in the sale of Fashion Bug (the “Company”).  The Company has determined that it is in the best interests of the Company to assure that the Company will have your continued dedication, assistance and objectivity, notwithstanding the possibility or occurrence of a sale of the Company, both in the performance of your regular job responsibilities as well as your assistance in the evaluation, exploration and closing of strategic alternatives for the Fashion Bug business (the “Project”).  As a result, the Company believes that it is in the best interests of the Company to provide you with incentives to continue your employment and to motivate you to assist in the Project and to maximize the value of the Company.  This letter explains the terms of those incentives. 

1.Retention Bonus.   In consideration of your continuing employment with the Company during the Project, as long as you have maintained continuous employment with the Company from today's date through the earlier to occur of (x) April 1, 2012 or (y) the date of closing on the sale of the Company (the “Closing Date”), and have satisfactorily performed your duties through such date, you will be entitled to receive a retention bonus of $125,000 (the “Retention Bonus”).  The Retention Bonus will be paid regardless of whether or not the Project results in the sale of the Company, and will be paid within thirty (30) days of the earlier of the Closing Date or April 1, 2012.  If your employment with the Company is terminated for Cause or you voluntarily leave the Company's employment prior to the earlier of the Closing Date or April 1, 2012, you will not be entitled to this Retention Bonus.  If the Company terminates your employment without Cause prior to the earlier of the Closing Date or April 1, 2012, you will be entitled to the full Retention Bonus which will be paid within thirty (30) days after termination of your employment.

For purposes of this letter, “Cause” shall mean (i) your violation of any policies of the Company (including, without limitation, the Company's Business Conduct Policy), (ii) your violation of the non-disclosure agreement you entered into with respect to the Project, (iii) your failure to satisfactorily perform your duties; or (iv) your failure to be positively engaged and present when necessary throughout the Project including your failure to provide assistance in the Project as requested by the Company.   

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2.Project Success Incentive.  In addition to the Retention Bonus, in the event the Closing Date occurs on or before April 1, 2012 and you have maintained continuous employment with the Company from today's date through the Closing Date (and have satisfactorily performed your duties through such Closing Date) you will be entitled to receive a Project Success Incentive of Two Hundred Fifty Thousand Dollars ($250,000.00).  The Company will pay the Project Success Incentive within ninety (90) days after the Closing Date.    If you are no longer employed with the Company for any reason prior to the Closing Date, or if the Closing Date does not occur on or before April 1, 2012, you will not be entitled to the Project Success Incentive.

3.    Additional Incentive. If the Company is sold and you are employed by the Company on the Closing Date, special vesting provisions apply under the Charming Shoppes, Inc. 2004 Stock Award and Incentive Plan and 2010 Stock Award and Incentive Plan and the agreements evidencing the grants or awards thereunder (collectively, the “2004 and 2010 Plans”).  Because the Company will no longer be affiliated with Charming Shoppes, Inc. after the sale, all individuals employed by the Company on the Closing Date are considered to have an “involuntary termination of employment” on the Closing Date for purposes of the 2004 and 2010 Plans.  For some awards under the 2004 and 2010 Plans, involuntary termination of employment accelerates vesting in part.   Depending on when the Closing Date occurs, these special vesting provisions may or may not provide for additional partial vesting of your awards.  The additional incentive payment under this Section 3 is a cash payment that is intended to make-up for your awards that will not otherwise vest in accordance with their terms as a result of the sale of the Company and your resultant involuntary termination of employment.  

This Section 3 does not affect the terms of any Stock Appreciation Rights (“SARS”) or Restricted Stock Unit Grants (“RSUS”) that have previously vested and are outstanding on the Closing Date.  

If the Closing Date occurs on or before April 1, 2012 and you have maintained continuous employment with the Company from today's date through the Closing Date (and have satisfactorily performed your duties through such date), you will be entitled to the following additional cash payments (the “Additional Incentive”), payable within ninety (90) days after the Closing Date: 

a.  With respect to all unvested SARS which will not vest under the terms of your SARS agreement as a result of the sale of the Company and your resultant involuntary termination of employment, (the “Applicable SARS”), the Company shall pay you an amount equal to the number of Applicable SARS multiplied by the positive difference, if any, between (x) the closing price of Charming Shoppes stock on the second trading day after the public announcement of the Closing on the Project and (y) the base price (strike price) of the Applicable SARS.  

b.  With respect to all unvested RSUS which will not vest under the terms of your RSUS agreement as a result of the sale of the Company and your resultant involuntary termination of employment, (the “Applicable RSUS”), the Company shall pay you an amount equal to (x) the number of Applicable RSUS multiplied by (y) the closing price of Charming Shoppes stock on the second trading day occurring  after the public announcement of the Closing on the Project.  

c.   With respect to all unpaid Long Term Incentive Plan (“LTIP”) cash payments which have not vested as of the Closing Date, the Company shall pay you an amount equal to such LTIP cash.  All payments of LTIP cash under this Section 5c. shall be in lieu of any other LTIP cash payments.  There shall be no duplication of LTIP payments hereunder.  

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If the Closing Date does not occur on or before April 1, 2012, or your employment is terminated prior to the Closing Date, you shall not be entitled to the Additional Incentive, and your SARS, RSUS, and LTIP cash payments will be continue to be governed in accordance with their terms.

4.    Annual Incentive Plan.  Your Annual Incentive Plan bonus for the Plan Year ending January 31, 2012, if any, will be paid under the ordinary terms of the Annual Incentive Plan program.

5.    Ratification of Severance Agreement.  Nothing herein is intended to modify any provision of the Severance Agreement between you and the Company dated as of January 21, 2009 and executed May 5, 2010 which governs the terms of severance and other incentive plans.  Rather the Retention Bonus, Project Success Incentive and Additional Incentive are in addition to the benefits set forth in the Severance Agreement and are special incentives in connection with the Project.  

6.      At-Will Employment. This letter does not constitute a contract of employment and does not guarantee or imply any right to continued employment for any period whatsoever.  This letter does not impose on you any obligation to remain as an employee, or impose on the Company any obligation (i) to retain you as an employee, or (ii) to change the Company's policies regarding termination of employment.  The Company and you acknowledge that your employment is and shall continue to be at-will, as defined under applicable law. 

7.    Entire Agreement.  This letter is the entire agreement between you and the Company with respect to the matters set forth herein in connection with the Project and the Company and you agree there are no other promises.  All payments made pursuant to this letter will be subject to withholding of applicable income and employment taxes.  

By signing this letter you agree to the above terms.  

Employee:

/S/ MARYELLEN MACDOWELL
MaryEllen MacDowell

Fashion Bug Retail Companies, LLC 

By:/S/ ERIC M. SPECTER
     Name: Eric M. Specter
     Title: Vice President

3Exh 10.1 Separation Agreement

SEPARATION AGREEMENT AND GENERAL RELEASE

This is a Separation Agreement and General Release entered into by and between Roger Martin, his heirs, legal representatives, legatees, successors and assigns (hereinafter referred to as “Employee”) and Winnebago Industries, Inc. (hereinafter referred to as “Company”). 

In consideration of the mutual promises contained in this Agreement, Company and Employee agree as follows: 

1.    Employee and Company agree that Employee's employment with Company will end March 5, 2012, (the “Termination Date”). 

2.    Subject to Paragraph 12, Company agrees to provide Employee with the following: 

(a)    Severance Payments.      Weekly payments for a period of Fifty-two (52) weeks following the Termination Date, (“Weekly Payment Period”).  During this Weekly Payment Period, Employee will receive an amount equal to Employee's current salary, less legally required deductions.  The Fifty-two (52) weeks of severance payments provided herein represents 34 weeks of payments over and above what the Employee would receive if he did not sign this Agreement; 

(b)    Health Insurance.  Winnebago will reimburse employee for the cost of COBRA 
coverage during the Weekly Payment Period, providing he provides a copy of each cancelled check for the COBRA payment in order to receive the reimbursement.    In the event the last COBRA premium covers a time frame that exceed the Weekly Payment Period, Winnebago will reimburse Employee a pro rata share of the premium.  All other benefits such as life insurance, disability insurance, 401(k), and vacation will cease as of Employee's last day of employment.  Employee will be eligible for COBRA coverage under the health insurance plan at the end of the severance period.

(c)    Other Benefits.  During his employment, Employee participated in various other benefit plans at Winnebago.  Employee will be eligible to continue participation in those benefits to the extent that is permitted under the terms of the plan documents or agreements. A summary of the other benefit programs that you may be eligible for is attached as Exhibit A.  

3.      The parties agree that the items identified in Paragraph 2 above are consideration in addition to any payments or other benefits to which Employee would otherwise be entitled, and include consideration of the waiver and release of claims set forth in paragraph 5 below.  

4.    Employee agrees: 
         
(a)    To cooperate with Company to complete or transfer all pending projects and employment matters as determined by the Company prior to the Termination Date; 

(b)    To provide Company with reasonable cooperation and assistance, including accurate and truthful testimony at trial if deemed necessary, for all lawsuits or proceedings for which Employee's testimony or cooperation may be warranted after the Termination Date.  Company shall reimburse Employee for any reasonable and necessary expense incurred as a result of Employee's cooperation and assistance; 

(c)     To promptly return to Company no later than five (5) days after signing this Agreement all Company materials and property, including but not limited to draft books, credit cards, cash advances, price books and customer lists, cell phones, computers, and to file Employee's final expense report; 
(d)    Not to use, copy or disclose directly or indirectly to anyone not connected with Company any confidential information or trade secrets obtained during the term of Employee's employment with Company including any memoranda, books, records, documents, or client lists for use outside of Company.  In addition, the Confidentiality and Intellectual Property Rights Agreement signed by the Employee on May 9, 2006, shall continue in force indefinitely according to its terms and conditions; 

(e)    Not to solicit current Company employees to leave such employment; 

(f)    Not to libel, slander or disparage the Company or its policies or practices to any individuals or groups; and 

(g)    Not to apply for or otherwise seek employment with the Company (including, but not limited to, placement by a temporary or staffing agency) at any time; Employee further agrees that the Company shall have no obligation to consider any application that Employee may submit in violation of this provision.  

5.    (a)  Subject to subparagraph 5(b) below and as a material inducement to Company to enter into this Agreement, Employee, on Employee's own behalf and on behalf of Employee's heirs, executors, agents, administrators, successors, assigns and representatives, covenants not to sue and fully and forever releases, acquit and discharges Company, its shareholders, partners, officers, directors, employees, agents, attorneys, representatives, parents, subsidiaries, divisions, affiliated companies, joint venture companies, insurers, customers, suppliers, and successors (collectively the “Releasees”), of and from any  and all actions, causes of action, claims and demands whatsoever (collectively “claims”) that Employee may have had, may now have, or may hereafter have against Releasees, including without limitation any and all claims in any way related to or based upon Employee's employment with and/or Employee's severance from employment with Company, including without limitation any claims for unpaid wages, breach of contract, implied contract, promissory estoppel, tortious conduct or claims arising under any federal or state statute or law or local ordinance, including but not limited to: the Age Discrimination in Employment Act (“ADEA”); the Older Workers Benefit Protection Act (“OWBPA”); the Americans with Disabilities Act as Amended (“ADAA”); the Family and Medical Leave Act (“FMLA”); Title VII of the Civil Rights Act of 1964; the Civil Rights Acts of 1991; the Employee Retirement Income Security Act (“ERISA”); Sections 1981 through 1988 of Title 42 of the United States Code; the Fair Labor Standards Act (“FLSA”); the National Labor Relations Act (“NLRA”); the Worker Adjustment and Retraining Notification Act (“WARN”); the Occupational Safety and Health Act (“OSHA”); Iowa's or any other state's fair employment practices laws; any other federal, state or local law, including without limitation, any other federal, state or local employment discrimination law; or claims arising under any public policy, contract or covenant (express or implied) or common law.  Provided, however, that if the Company were to breach the Agreement, this release would not bar an action by Employee against the Company to enforce its term(s).
(b)  On Employee's own behalf and on behalf of Employee's heirs, executors, agents, administrators, successors, assigns and representatives, Employee specifically waives any right or claim under the Age Discrimination in Employment Act of 1967 as amended and the Older Workers Benefit Protection Act (collectively referred to as the “Act”). Employee acknowledges and agrees that this waiver of any right or claim under the Act (hereinafter “Waiver”) is knowing and voluntary, and specifically agrees as follows: (i) that this Waiver is part of a written agreement between Employee and the Company; (ii) that this Agreement and this Waiver are written in a manner which Employee understands; (iii) that this Waiver specifically relates to rights or claims arising under the Act; (iv) that Employee does not waive any rights or claims under the Act that may arise after the date of execution of this Agreement and Waiver as set forth below; (v) that Employee waives rights or claims under the Act arising on or before the execution date of this Agreement in exchange for consideration in addition to anything of value to which Employee is already entitled to receive; (vi) that Employee is hereby advised in writing to consult with an attorney prior to executing this Agreement and Waiver; (vii) that Employee has a period of twenty-one (21) days within which to consider this Agreement and Waiver; and (viii) that for a period of seven (7) days following the execution of this Agreement and Waiver, Employee may revoke the Agreement and Waiver, and the Agreement and Waiver will not become effective or enforceable until the revocation period expires.
  
(c)    This Agreement covers both claims that Employee knows about and those Employee may not know about.  Employee expressly waives all rights afforded by any statute that limits the effect of a release with respect to unknown claims.  Employee understands the significance of Employee's release of unknown claims and Employee's waiver of statutory protection against a release of unknown claims.  
(d)    This Agreement shall not affect Employee's claims arising out of any social security, workers' compensation or unemployment laws, or under the terms of any employee pension or welfare or benefit plans or programs of the Company, which may be payable now or in the future to Employee.  

(e)    Employee warrants and represents that, other than any as referenced in this Agreement, Employee has not filed a law suit or other complaint asserting any claims that are released in this Agreement.  Should any person, organization or other entity file, claim, sue or cause or permit to be filed any civil action, suit or legal proceeding against any of the Releasees involving any matter occurring at any time up to the time Employee signs this Agreement, Employee agrees not to seek or accept any personal or monetary relief in such action or proceeding.
     6.    This Agreement shall not be construed as an admission by Company of any wrongdoing or any violation of federal, state or local law, regulation or ordinance, and Company specifically disclaims any wrongdoing whatsoever against Employee on the part of itself, its employees, representatives or agents. 

7.    Employee represents and warrants that he is the sole owner of the actual or alleged claims, demands, rights, causes of action and other matters which are released herein; that the same have not been transferred or assigned or caused to be transferred or assigned to any other person, firm, corporation or other legal entity; that they have obtained all approvals necessary to enter into this Agreement; and that he has the full right and power to grant, execute, and deliver the releases, undertakings and agreements contained herein.

8.    It is understood and agreed that for purposes of this Agreement the term “Company” as used herein shall include not only Winnebago Industries, Inc., but also its subsidiaries or affiliated companies, and all officers, directors and employees of any of the foregoing. 

9.    To the extent that any provision of this Agreement shall be deemed by any court to be unenforceable, such provision shall be deemed modified or omitted to the extent necessary to make the remaining provisions enforceable; in that event, the parties agree to use their best efforts to substitute a valid, legal and enforceable provision, which insofar as practical, implements the purpose of this Agreement.  

10.    Employee expressly acknowledges that Employee understands all the provisions of this Separation Agreement and General Release and is voluntarily entering into this Agreement and Release. 

11.    All disputes arising from this Agreement and otherwise between the Company and Employee as to state laws shall be governed by the laws of the State of Iowa.  The venue for any dispute between the parties arising from this Agreement or otherwise shall be in Winnebago County, Iowa. 

12.    In the event Employee breaches any term or condition of this Agreement, Employee shall immediately forfeit and repay to the Company the payments and benefits he received under Paragraph 2.

13.    In addition to the other remedies allowed by law and this Agreement, if either party initiates any action or proceedings to enforce this Agreement, the prevailing party in such action or proceeding shall be entitled to recover the costs, including reasonable attorneys' and expert witness fees.  

14.    This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof, and supersedes all prior oral or written agreements, commitments or understandings with respect thereto. 

 
	
					
	 
	 
	 
	WINNEBAGO INDUSTRIES, INC.
	 

	 
	 
	 
	 
	 

	/s/ Kathy Bonjour
	 
	By:
	/s/ Robert Gossett
	3/22/2012

	Witness
	 
	 
	Robert Gossett
	Date

	 
	 
	 
	Its Vice President, Administration
	 

	 
	 
	 
	 
	 

	/s/ Scott Wilson
	 
	 
	/s/ Roger Martin
	3/20/2012

	Witness
	 
	 
	Roger Martin
	Date

EXHIBIT A

Other Benefits Summary

Executive Share Option Program (KEYSOP)

The Executive Share Option Program will continue until the participant elects to exercise an option(s), notifies the Program Committee member, and pays the exercise price.  The participant may exercise the option(s) at any time until the option expiration date.  

Supplemental Executive Retirement Plan (SERP)

A delayed vested benefit is provided under the SERP.  Based upon your initial program elections, you will have a lump sum benefit paid to you in April 2015.  

Deferred Compensation

The Deferred Compensation Plan provides for an early payment to the participant and a return of the participants deferral plus interest following termination of services.  

Stock Options and Stock Grants

All stock option grants and stock grants made by the Company are subject to the specific terms in place at the time of those grants.  All options and stock grants are subject to the specific vesting provisions in place at the time of issuance.

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