Document:

jill-ex1023_56.htm

Exhibit 10.23

EXECUTION COPY

 

SEPARATION AGREEMENT

This Separation Agreement (this “Agreement”) is made and entered into as of December 4, 2019, by and between J.Jill, Inc. (the “Company”), and Linda Heasley (“Executive” and, together with the Company, the “Parties”).

R E C I T A L S

WHEREAS, the Parties desire to enter into a written separation agreement to reflect the terms upon which, effective as of the Separation Date (as defined below), Executive shall cease to serve as Chief Executive Officer of the Company and shall otherwise terminate her employment with the Company; and 

WHEREAS, the Company previously entered into that certain Employment Agreement, dated as of March 13, 2018 (the “Employment Agreement”), and capitalized terms used and not otherwise defined herein shall have the meanings ascribed to them in the Employment Agreement.

NOW, THEREFORE, in consideration of the mutual promises, terms, covenants, and conditions set forth in this Agreement, and the performance of each, the Parties agree as follows:

AGREEMENTS

1.Separation Date; Public Statements.  The Parties agree that Executive shall terminate employment as Chief Executive Officer of the Company, effective as of December 4, 2019 (the “Separation Date”) and that, as of such date, Executive shall be deemed to have resigned from all offices and directorships she then holds at the Company and its direct and indirect subsidiaries (collectively, the “J.Jill Company”).  If requested by the Company, Executive shall deliver written instruments of resignation evidencing such resignations.  The Company and the Executive will not make public statements inconsistent with the treatment of the termination of Executive’s employment having resulted from Executive’s resignation following loyal professional service to the Company. 

2.Effective Date.  Executive shall have until twenty-one (21) days from the date hereof to consider whether to execute this Agreement (the date on which Executive executes this Agreement, the “Release Date”).  Executive may execute this Agreement at any time within the twenty-one (21) day period following the date hereof.  If Executive executes this Agreement, Executive shall have seven days following the Release Date to revoke this Agreement.  If Executive does not revoke this Agreement during the seven days following the Release Date, then this Agreement shall become effective on the eighth day following the Release Date (such eighth day, the “Effective Date”) 

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3.Separation Benefits.  

(a)The Company acknowledges and agrees that Executive shall receive the payments to which she is entitled upon a termination of employment by the Company without Cause and, subject to her execution of a release, that Executive shall be entitled to the payments and benefits set forth in paragraphs 6(f) and 6(g) of the Employment Agreement (described below), which payments and benefits shall be paid in accordance with the terms, and subject to the conditions, of the Employment Agreement and the terms and conditions applicable to any equity or equity-based awards with respect to common stock of the Company.

(b)For purposes of clarity, for so long as Executive fully complies with her obligations under paragraphs 7 through 11 of the Employment Agreement and if Executive executes (and does not revoke) the Release attached hereto as Exhibit A, such that by its terms it becomes irrevocable within sixty (60) days after the Separation Date, then Executive shall be entitled the following in accordance with paragraph 6(g) of the Employment Agreement: 

(i)Executive shall be paid an amount of $900,000, which represents one (1) times Executive’s current annual Base Salary, paid in substantially equal installments on regularly scheduled payroll dates for the twelve (12)-month period that begins on the first regular payroll date that is sixty (60) days after the Separation Date; provided, that such first payment shall be a lump sum payment equal to the amount of all payments due from the date of such termination through the date of such first payment; 

(ii)The restricted stock units with respect to 208,760 shares of the Company’s common stock, that would have otherwise vested on April 16, 2020, pursuant to the Restricted Stock Unit Award Agreement, dated as of April 16, 2018 will not be forfeited on the Separation Date, but shall become vested on the Effective Date, subject to the effectiveness of this Agreement and the Release.

(iii)During the twelve (12)-month period immediately after the Separation Date, or, if earlier, until coverage is obtained by Executive from another employer, (which coverage Executive shall promptly disclose to the Company), to the extent permitted by applicable law, Executive shall also receive continuation of the medical and dental coverage to which Executive was entitled immediately prior to her termination (including dependent coverage), at the same premium cost to Executive as determined immediately prior to such termination; provided, that any right Executive has to COBRA under the group health plan in which she participated during her employment with the Company will run concurrently with the continuation of coverage provided herein, and, provided, further, that any Company-paid premiums shall be reported as taxable income to Executive. 

(c)Executive shall be entitled to receive her Base Salary and all benefits and reimbursements due through the Separation Date, payable in accordance with the Company’s standard payroll procedures.  

(d)Executive shall have the right to exercise any of Executive’s vested options to acquire shares of common stock of the Company for a ninety (90)-day period following the Separation Date.

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(e)Executive hereby acknowledges that, except as otherwise specifically provided in this Agreement, Executive will not be entitled to any cash or non-cash consideration or other benefits of any kind from any J.Jill Company, including any payments or benefits to which Executive may have been entitled to under any Company equity plan and related award agreements or any other agreement with any J.Jill Company.

(f)Effective on the Separation Date, the proviso of Section 7(b) of the Employment Agreement shall be amended to add to the end thereof the following:

“or from acting as an advisor, officer, director, owner, partner, member, joint venturer, or in a managerial capacity (whether as an employee, independent contractor, agent, representative, or consultant), of any business having revenues from the sale of women’s apparel, or the receipt of licensing revenues with respect to such sales by third parties, of less than $15,000,000 in each of the two most recent calendar years.”

4.Attorney’s Fees. The Company shall also pay directly to Executive’s counsel legal fees incurred in connection with the review of this Agreement, including the exhibits hereto, not to exceed $15,000.

5.Benefits and Perquisites. Subject to your execution and the non-revocation of the Release, the Company shall reimburse Executive for expenses reasonably incurred in connection with one annual physical at the Mayo Clinic and up to $25,000.00 of professional fees incurred in connection with income tax planning and return preparation for 2019.

6.Office Furniture.  Subject to your execution and the non-revocation of the Release, the Company hereby agrees that the Company will ship Executive the office furniture she purchased to an address specified by her at her direction, at the Company’s sole expense, as soon as practicable following the Effective Date.

7.Further Cooperation.  Executive hereby agrees that following the Separation Date, Executive shall make herself reasonably available as may be reasonably requested by the Chief Executive Officer or the Board of Directors of the Company (the “Board”) from time to time, to cooperate with matters that pertain to Executive’s past employment with the Company and its predecessors, including, without limitation, providing information or limited consultation as to such matters, participating in legal proceedings, investigations or audits on behalf of the Company, or otherwise making herself reasonably available to the Company for other related purposes.  The Company shall reimburse Executive for any reasonable travel and out-of-pocket expenses incurred by Executive in providing such cooperation and shall take such steps as are reasonably necessary to avoid conflicts with Executives other employment or activities.

8.Miscellaneous.

(a)Confidentiality; Trade Secrets.  Notwithstanding anything to the contrary herein, nothing in this Agreement or the Employment Agreement will prohibit Executive from making reports of possible violations of federal law or regulation to any governmental agency or entity in accordance with the provisions of and rules promulgated under Section 21F of the ‘34 Act or Section 806 of the Sarbanes-Oxley Act of 2002, or of any other whistleblower protection provisions of federal law or regulation, or require modification or prior approval by the 

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Company or any other J.Jill Company of any such reporting.  Notwithstanding anything to the contrary contained herein, pursuant to the Defend Trade Secrets Act of 2016, Executive shall not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a Trade Secret that: (i) is made (A) in confidence to a Federal, state, or local government official, either directly or indirectly, or to an attorney; and (B) solely for the purpose of reporting or investigating a suspected violation of law; or (ii) is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal.  Executive also understands that if she files a lawsuit for retaliation by the Company for reporting a suspected violation of law, Executive may disclose the Trade Secret to her attorney and use the Trade Secret information in the court proceeding, if Executive (i) files any document containing the Trade Secret under seal, and (ii) does not disclose the trade secret, except pursuant to court order.

(b)Employment and Equity Agreements.  Except as expressly modified herein, the terms of the Employment Agreement and any agreements regarding equity or equity-based awards shall continue in effect pursuant to the terms set forth therein, including, without limitation, Executive’s continued obligations to abide by the terms of the restrictive covenants contained in the Employment Agreement.

(c)Complete Agreement; Waiver; Amendment.  This Agreement shall be binding on the Parties as of the Effective Date.  Except as otherwise provided in this Agreement, as of the Effective Date, Executive has no oral representations, understandings, or agreements with any of the J.Jill Companies or any of its officers, directors, or representatives covering the same subject matter as this Agreement.  As of the Effective Date, this Agreement (including documents referred to herein) are the final, complete, and exclusive statement of expression of the agreement among the Parties with respect to the subject matter hereof, and cannot be varied, contradicted, or supplemented by evidence of any prior or contemporaneous oral or written agreements.  This written Agreement may not be later modified except by a further writing signed by (i) a duly authorized officer of the Company (other than Executive) and (ii) Executive, and no term of this Agreement may be waived except by a writing signed by the party waiving the benefit of such term.

(d)Severability; Headings.  If any portion of this Agreement is held invalid or inoperative, the other portions of this Agreement shall be deemed valid and operative and, so far as is reasonable and possible, effect shall be given to the intent manifested by the portion held invalid or inoperative.  The paragraph and section headings are for reference purposes only and are not intended in any way to describe, interpret, define or limit the extent of the Agreement or of any part hereof.

(e)Signature in Counterparts.  This Agreement may be signed in counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument.

(f)Other.  Sections 6(l), 13, 15, 18, 19 and 20 of the Employment Agreement are incorporated herein by reference and will apply mutatis mutandis as set forth therein to this Agreement.

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(g)409A.  The Parties agree that this Agreement is intended to be administered in accordance with Section 409A of the Internal Revenue Code of 1986 (together with Treasury Regulations and related written guidance from the Internal Revenue Service, “Section 409A”).  It is the intention of the Parties that the compensation and benefits under Sections 3, 5 and 6 of this Agreement be excluded from Section 409A as short term deferrals or payments under the separation pay exemption.  To the extent that any provision of this Agreement is ambiguous as to its compliance with Section 409A, the provision shall be read in such a manner so that all payments hereunder comply with Section 409A, and to the extent required, be subject to any applicable six (6) month delay for “specified employees”.  Each payment pursuant to this Agreement is intended to constitute a separate payment for purposes of Treasury Regulation Section 1.409A-2(b)(2).  The Parties agree that this Agreement may be amended, as reasonably requested by either Party, as may be necessary to fully comply with Section 409A in order to preserve the payments and benefits provided hereunder without additional cost to either Party.  Notwithstanding the foregoing, nothing contained herein constitutes tax advice or provides any form of tax indemnity.

 

 

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IN WITNESS WHEREOF, each of the Parties has caused this Separation Agreement to be duly executed as of the date first written above.

 

	
J.JILL, INC.

	
By:
	
 
	
 

	
 
	
 
	
Name:
	
 
	
 

	
 
	
 
	
Title:
	
 
	
 

	
LINDA HEASLEY

	
 

 

 

[Signature Page to Separation Agreement]

 

Exhibit A

RELEASE AND WAIVER OF CLAIMS

This Release and Waiver of Claims (“Release”) is entered into and delivered to the Board of Directors of J.Jill, Inc. (the “Company”), having an address at 4 Batterymarch Park Quincy, Massachusetts 02169, as of December 4, 2019, by Linda Heasley (“Executive”).  Executive agrees as follows:

The employment relationship between Executive and the Company and its subsidiaries and affiliates (collectively, the “Company”) terminated on December 4, 2019 (the “Termination Date”) pursuant to Section 6(c), as applicable, of the Employment Agreement by and between the Company and Executive, dated March 13, 2018 (the “Employment Agreement”).  Capitalized terms used but not defined in this Release shall have the meaning ascribed to them in the Employment Agreement.

In consideration of the payments, rights and benefits provided for in Sections 3, 5 and 6 of the Separation Agreement by and between the Company and Executive, dated December 4, 2019 and Section 6(g) of the Employment Agreement (“Separation Terms”) that are conditioned upon the effectiveness of this Release, the sufficiency of which Executive hereby acknowledges, Executive, on behalf of herself and her agents, representatives, attorneys, administrators, heirs, executors and assigns (collectively, the “Executive Releasing Parties”), hereby releases and forever discharges the Company Released Parties (as defined below), from all claims, charges, causes of action, obligations, expenses, damages of any kind (including attorneys’ fees and costs actually incurred) or demands, in law or in equity, whether known or unknown, that may have existed or which may now exist from the beginning of time to the date of this Release, arising from or relating to Executive’s employment or termination from employment with the Company or otherwise, including a release of any rights or claims Executive may have under Title VII of the Civil Rights Act of 1964; the Civil Rights Act of 1991; the Age Discrimination in Employment Act of 1967, as amended (“ADEA”); the Older Workers Benefit Protection Act; the Americans with Disabilities Act of 1990; the Rehabilitation Act of 1973; the Family and Medical Leave Act of 1993; Section 1981 of the Civil Rights Act of 1866; Section 1985(3) of the Civil Rights Act of 1871; the Employee Retirement Income Security Act of 1974 (excluding COBRA); the Fair Labor Standards Act; the Equal Pay Act; the Fair Credit Reporting Act; the federal Worker Adjustment and Retraining Notification Act (“WARN Act”); the Family & Medical Leave Act; the Sarbanes-Oxley Act of 2002; the federal False Claims Act; the Massachusetts Fair Employment Practice Act; the Massachusetts Wage Act; the Massachusetts Equal Pay Law; the Massachusetts Age Discrimination Law; the Massachusetts Right-To-Know Law; the Massachusetts Family Leave Law; the Massachusetts Juror Protection Law; the Massachusetts School Leave Law; the Massachusetts Polygraph Law; the Massachusetts WARN Act; the New Hampshire Equal Pay Act; the New Hampshire Whistleblower Protection Act; the New Hampshire Law Against Discrimination; the New Hampshire Worker’s Right to Know Act; the New Hampshire Juror Protection Law; the New Hampshire Military Discrimination Law; the New Hampshire Indoor Smoking Act; the New Hampshire WARN Act; any other federal, state or local laws against discrimination; or any other federal, state, or local statute, regulation or common law relating to employment, wages, hours, or any other terms and conditions of employment.  This includes a release by Executive of any 

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and all claims or rights arising under contract (whether written or oral, express or implied), covenant, public policy, tort or otherwise.  For purposes hereof, “Company Released Parties” shall mean each J.Jill Company and any of their respective past or present employees, agents, insurers, attorneys, administrators, officials, directors, shareholders, divisions, parents, members, subsidiaries, affiliates, predecessors, successors, employee benefit plans, and the sponsors, fiduciaries, or administrators of any J.Jill Company employee benefit plans (but with respect to any agent, insurer, attorney, administrator or any individual only in its or his or her official capacity with the J.Jill Companies and not in any individual capacity unrelated to the business of the J.Jill Companies).

Executive acknowledges that Executive is waiving and releasing rights that Executive may have under the ADEA and other federal, state and local statutes contract and the common law and that this Release is knowing and voluntary.  Executive acknowledges that the consideration given for this Release is in addition to anything of value to which Executive is already entitled.  Executive further acknowledges that Executive has been advised by this writing that: (i) Executive should consult with an attorney prior to executing this Release; (ii) Executive has twenty-one (21) days within which to consider this Release and such additional time provided in the Employment Agreement, although Executive may, at Executive’s discretion, sign and return this Release at an earlier time, in which case Executive waives all rights to the balance of this twenty-one (21) day review period; and (iii) for a period of seven (7) days following the execution of this Release in duplicate originals, Executive may revoke this Release in a writing delivered to the General Counsel of the Company, and this Release shall not become effective or enforceable until the revocation period has expired.

Executive and the Company agree that this Release does not apply to: (i) any rights or claims that may arise after the date of execution by Executive of this Release; (ii) any claims for workers’ compensation benefits (but it does apply to, waive and affect claims of discrimination and/or retaliation on the basis of having made a workers’ compensation claim); or (iii) claims for unemployment benefits or any other claims or rights that by law cannot be waived in a private agreement between an employer and employee.

This Release does not release the Company Released Parties from (i) any obligations due to Executive under the Separation Terms, (ii) any rights Executive has to exculpation, indemnification or advancement by the Company or any of the J. Jill Companies or to directors and officers liability insurance coverage, including any such rights set forth in separate indemnification agreements between the Executive and Company all of which shall continue in full force and effect, (iii) any vested rights Executive has under any J.Jill Company employee benefit plans as a result of Executive’s service with the Company, in accordance with the terms of such plans, or (iv) any fully vested rights of Executive as an equityholder of the Company.

Nothing in this Release restricts or prohibits Executive from initiating communications directly with, responding to any inquiries from, providing testimony before, providing confidential information to, reporting possible violations of law or regulation to, or from filing a claim or assisting with an investigation directly with a self-regulatory authority or a government agency or entity, including the U.S. Equal Employment Opportunity Commission, the Department of Labor, the National Labor Relations Board, the Department of Justice, the 

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Securities and Exchange Commission, the Congress, and any agency Inspector General (collectively, the “Regulators”), or from making other disclosures that are protected under the whistleblower provisions of state or federal law or regulation.  However, to the maximum extent permitted by law, Executive is waiving her right to receive any individual monetary relief from the Company or any others covered by the Release resulting from such claims or conduct, regardless of whether Executive or another party has filed them, and in the event Executive obtains such monetary relief the Company will be entitled to an offset for the payments made pursuant to this Release.  This Release does not limit Executive’s right to receive an award from any Regulator that provides awards for providing information relating to a potential violation of law.  Executive does not need the prior authorization of the Company to engage in conduct protected by this paragraph, and Executive does not need to notify the Company that Executive has engaged in such conduct.

Please take notice that federal law provides criminal and civil immunity to federal and state claims for trade secret misappropriation to individuals who disclose a trade secret to their attorney, a court, or a government official in certain, confidential circumstances that are set forth at 18 U.S.C. §§ 1833(b)(1) and 1833(b)(2), related to the reporting or investigation of a suspected violation of the law, or in connection with a lawsuit for retaliation for reporting a suspected violation of the law.

Executive represents and warrants that she has not filed any action, complaint, charge, grievance, arbitration or similar proceeding against the Company Released Parties.

This Release is not an admission by the Company Released Parties or Executive Releasing Parties of any wrongdoing, liability or violation of law.

Executive waives any right to reinstatement or future employment with any J.Jill Company following Executive’s separation from the Company on the Termination Date.

Executive shall continue to be bound by the restrictive covenants contained in Sections 7-11 of the Employment Agreement.

This Release shall be governed by and construed in accordance with the laws of the State of Delaware without reference to the principles of conflict of laws.

Each of the sections contained in this Release shall be enforceable independently of every other section in this Release, and the invalidity or unenforceability of any section shall not invalidate or render unenforceable any other section contained in this Release.

Executive acknowledges that Executive has carefully read and understands this Release, that Executive has the right to consult an attorney with respect to its provisions and that this Release has been entered into knowingly and voluntarily.  Executive acknowledges that no representation, statement, promise, inducement, threat or suggestion has been made by any of the Company Released Parties to influence Executive to sign this Release except such statements as are expressly set forth herein or in the Employment Agreement or the Separation Agreement, dated as of December 4, 2019, by and between the Company and Executive.

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Executive has executed this Release as of the day and year first written above.

 

	
EXECUTIVE

	
 

	
Linda Heasley

 

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Exhibit 10.24

 

December 4, 2019

James Scully

Dear James:

It is my pleasure to offer you the position of Interim Chief Executive Officer (“Interim CEO”) of J.Jill, Inc. (“J.Jill” or the “Company,” and collectively with its direct and indirect subsidiaries, whether existing on the Start Date (defined below) or thereafter acquired or formed, the “J.Jill Companies”), pursuant to the terms of this letter agreement (the “Offer Letter”).

The terms and conditions of your employment with J.Jill will be as follows and shall, subject to your satisfaction of the “Conditions to Employment” listed below, become effective as of the date on which you countersign this Offer Letter.

	
 
	
1.
	
Start Date: Your start date in this position will be December 5, 2019 (the “Start Date”).

	
 
	
2.
	
Position and Duties: 

	
 
	
a.
	
As Interim CEO, you shall have such responsibilities, duties, and authorities as are commensurate with the position of Interim CEO, or as are assigned to you by the Board of Directors of the Company (the “Board”).

	
 
	
b.
	
During the Term (as defined below) you shall remain a member of the Board, but shall now also be an employee of the Company. Notwithstanding your service as Interim CEO, you shall still be entitled to receive compensation to which you were entitled as an independent director of the Company.

	
 
	
c.
	
You agree that you shall resign as a member of the Board’s Audit Committee prior to the Start Date and shall not serve as a member of the Audit Committee at any time during the Term.

	
 
	
d.
	
In your role as Interim CEO, you shall fulfill your duties and responsibilities in a diligent, trustworthy, and appropriate manner and in compliance with the policies and practices of the J.Jill Companies and applicable law. 

	
 
	
e.
	
During the Term, your primary business focus shall be on your duties as Interim CEO and you shall exert your reasonable best efforts in such role and shall carry out your duties in good faith so as to promote the purpose and mission of the J.Jill Companies. 

	
 
	
f.
	
You shall be allowed to continue to engage in all businesses that you engage in as of the date of this Offer Letter, including without limitation your continued service on the Board, so long as such activities do not create an actual or reasonably foreseeable potential conflict of interest with, or materially interfere with the performance of, your duties hereunder, in each case as determined in the reasonable judgment of the Board.

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3.
	
Term:  You shall serve as the Interim CEO from the Start Date until the earlier of (i) the date that a permanent (non-interim) Chief Executive Officer commences employment and (ii) the date which is ninety (90) days from the Start Date (the “Initial Term”). The Initial Term may be extended on a month-to-month basis by mutual agreement (including with respect to compensation for services provided during any such extended term) of you and J.Jill (the Initial Term and any such extended term, the “Term”).

	
 
	
4.
	
Sign-On Bonus: You shall be paid a one-time cash sign-on bonus of $100,000 (the “Sign-On Bonus”), payable within thirty (30) days following the Start Date; provided, however, that if you resign from J.Jill at any time prior to the end of the Initial Term, you shall repay the Sign-On Bonus to J.Jill within ten (10) business days following such termination of employment.

	
 
	
5.
	
Ongoing Cash Compensation: During the Initial Term, you will be paid cash compensation at the rate of $100,000 per month (the “Cash Compensation”), with a guaranteed minimum of three (3) months of payments, payable bi-weekly through the Company’s payroll.

	
 
	
6.
	
Equity Award: You will be entitled to receive a grant of 180,000 restricted stock units as of the Start Date, which shall vest on the last day of the Initial Term, subject to the terms of the applicable J.Jill equity compensation plans and related documents.

	
 
	
7.
	
Expense Reimbursement: 

	
 
	
a.
	
The Company shall reimburse you for all reasonable travel expenses associated with your travel to the Quincy, Massachusetts area in the performance of your duties as Interim CEO, not to exceed $10,000.00 per month.

	
 
	
b.
	
J.Jill shall reimburse you for your reasonable legal fees, incurred in connection with your consideration of whether to accept the offer to serve as Interim CEO, including the review of this Offer Letter, and all related documents, not to exceed $10,000.00.

	
 
	
8.
	
Representations: By accepting this offer, you unconditionally agree not to use in connection with your employment with J.Jill any confidential or proprietary information which you have acquired in connection with any former employment or reveal or disclose to J.Jill or any of employees, agents, representatives or vendors of any J.Jill Company, any confidential or proprietary information that you have acquired in connection with any former employment. You represent that you are accepting J.Jill’s offer in good faith, and that you understand that J.Jill will rely on your acceptance. The terms of the offer are considered confidential and should not be shared with any other company, including your current employer.

	
 
	
9.
	
Governing Law; Forum: This offer letter shall in all respects be governed by and construed in accordance with the laws of the State of Delaware, not including the choice-of-law rules thereof. You and J.Jill consent to the exclusive and sole jurisdiction and venue of the state and federal courts located in Delaware for the litigation of disputes not subject to arbitration and waive any claims of improper venue, lack of personal jurisdiction, or lack of subject matter jurisdiction as to any such disputes.

	
 
	
10.
	
Withholdings: All payments provided for herein in your capacity as Interim CEO shall be reduced by any amounts required to be withheld from time to time under applicable federal, state or local income or employment tax law or similar statutes or other provisions of law then in effect.

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11.
	
Section 409A: This Offer Letter shall be interpreted in accordance with Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), and any Treasury Regulations or other Department of Treasury guidance issued thereunder (“Section 409A”). If required by Section 409A, no payment or benefit constituting nonqualified deferred compensation that would otherwise be payable or commence upon the termination of employment shall be paid or shall commence unless and until you have had a “separation from service” within the meaning of Section 409A as determined in accordance with Section 1.409A-1(h) of the Treasury Regulations. For purposes of Section 409A, each of the payments that may be made hereunder is designated as a separate payment. If you are deemed on the date of termination to be a “specified employee” within the meaning of the term under Section 409A, then with regard to any payment or the provision of any benefit under any agreement that is considered nonqualified deferred compensation under Section 409A payable on account of a “separation from service,” such payment or benefit shall be made or provided on the first business day following the earlier of (A) the expiration of the six (6)-month period measured from the date of such “separation from service,” and (B) the date of your death (the “Delay Period”). Upon the expiration of the Delay Period, all payments and benefits delayed pursuant to this paragraph (whether they would have otherwise been payable in a single sum or in installments in the absence of such delay) shall be paid or reimbursed to you in a lump sum (without interest) on the first business day following the Delay Period, and any remaining payments and benefits due under this Offer Letter shall be paid or provided in accordance with the normal payment dates specified for them herein. You agree to negotiate with J.Jill in good faith to make amendments to this Offer Letter as you and J.Jill mutually agree, reasonably and in good faith, are necessary or desirable to avoid the possible imposition of taxes or penalties under Section 409A, while preserving any affected benefit or payment to the extent reasonably practicable without materially increasing the cost to J.Jill. Notwithstanding the foregoing, you shall be solely responsible and liable for the satisfaction of all taxes, interest and penalties that may be imposed on you or for your account in connection with any payment or benefit under this Offer Letter (including any taxes, interest and penalties under Section 409A), and J.Jill shall have no obligation to indemnify or otherwise hold you (or any beneficiary successor or assign) harmless from any or all such taxes, interest or penalties.

	
 
	
12.
	
Entire Agreement: This Offer Letter supersedes all prior and contemporaneous oral or written, express or implied understandings or agreements regarding your employment with J.Jill, and contains the entire agreement between you and J.Jill regarding your employment with J.Jill. The terms set forth in this letter may not be modified, except in writing signed by an authorized representative of J.Jill, which expressly states the intention of J.Jill to modify the terms of this Offer Letter

	
 
	
13.
	
Assignment; Binding Effect: You understand that you have been selected for employment by J.Jill on the basis of your personal qualifications, experience, and skills. You agree, therefore, that you cannot assign all or any portion of your performance under this Offer Letter. J.Jill may assign this Offer Letter to the purchaser of substantially all of the assets of J.Jill, or to any subsidiary or parent company of J.Jill. Subject to the preceding two sentences, this Offer Letter shall be binding upon, inure to the benefit of, and be enforceable by the parties and their respective heirs, legal representatives, successors, and assigns. You acknowledge and agree that each J.Jill Company is a third-party beneficiary of this Offer Letter.

	
 
	
14.
	
Conditions to Employment: This offer is contingent upon: (1) your execution of this Offer Letter; (2) you commencing employment as Interim CEO on the Start Date; and (3) you providing to J.Jill documentary evidence of your identity and provide a Form I-9 to evidence your eligibility for employment in the United States within (3) business days from your date of hire.

[Signature Page Follows]

 

 

 

James, we welcome you to J. Jill. If you are in agreement and plan to accept this offer, then please sign below and scan and email to mark.webb@jjill.com.

 

	
Sincerely,

	
 
	
 

	
Mark Webb

	
Chief Financial Officer

 

ACCEPTANCE:

I have read this letter and agree with the terms and conditions of my employment as set forth above.

 

	
Dated:
	
 
	
 
	
 
	
Signature:
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
James Scully

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