Document:

Document

EXHIBIT 4.2 

DESCRIPTION OF THE REGISTRANT’S SECURITIES

Ascena Retail Group, Inc. “ascena,” “ourselves,” “we,” “us,” “our” or “Company” or other similar terms has two classes of securities registered under Section 12 of the Securities Exchange Act of 1934, as amended: our common stock and our preferred stock purchase rights.
DESCRIPTION OF CAPITAL STOCK
The following summary of the terms of our capital stock is based upon our Third Amended and Restated Certificate of Incorporation, as amended (the “Certificate of Incorporation”), our Second Amended and Restated By-laws (the “By-laws”) and our Certificate of Designations of Series A Junior Participating Preferred Stock (the “Certificate of Designations”).  The summary is not complete, and is qualified in their entirety by reference to our Certificate of Incorporation, By-laws and Certificate of Designations.  We encourage you to read our Certificate of Incorporation, By-laws and Certificate of Designations and the applicable provisions of the Delaware General Corporation Law (the “DGCL”) for additional information.
Authorized Shares of Capital Stock
Our authorized capital stock consists of eighteen million (18,000,000) shares of common stock, $0.01 par value per share, and one hundred thousand (100,000) shares of preferred stock, $0.01 par value per share.  
Voting Rights
Holders of ascena common stock are entitled to one vote per share on all matters to be voted upon by stockholders. There are no cumulative voting rights. Stockholders may vote by proxy.
Dividend and Distribution Rights
Subject to preferences applicable to any shares of outstanding ascena preferred stock, the holders of outstanding shares of ascena common stock will be entitled to receive dividends and other distributions out of assets legally available at times and in amounts as the ascena board of directors may determine from time to time. All shares of ascena common stock are entitled to participate ratably with respect to dividends or other distributions.
Rights upon Liquidation
If ascena is liquidated, dissolved or wound up, voluntarily or involuntarily, holders of ascena common stock are entitled to share ratably in all assets of ascena available for distribution to the ascena 

EXHIBIT 4.2 

stockholders after the payment in full of any preferential amounts to which holders of any ascena preferred stock may be entitled.
Other Rights and Preferences
There are no preemption, redemption, sinking fund or conversion rights applicable to the ascena common stock.  Pursuant to the By-laws, special meetings of stockholders may be called by stockholders with net long beneficial ownership of our capital stock representing not less than 10% of the voting power of all shares of capital stock entitled to vote at the meeting, subject to the requirements contained in the By-laws.
Transfer Agent and Registrar
American Stock Transfer & Trust Company, LLC is the transfer agent and registrar for our common stock.
Preferred Stock
The ascena board of directors, without further stockholder approval, is authorized to issue from time to time the preferred stock in one or more series and to fix the number of shares constituting the designation, voting powers (if any), preferences and other rights, as well as the qualifications, limitations and restrictions, of the series. The powers, preferences and rights, and the qualifications, limitations or restrictions, if any, of each series of preferred stock may be different from those of any and all other series.
Preferred Stock Purchase Rights
On May 26, 2020, the Company entered into a Tax Benefits Preservation Plan (the “Plan”) with American Stock Transfer & Trust Company, LLC, as Rights Agent. In connection with the Plan, the ascena board authorized and declared a dividend distribution of one preferred share purchase right (a “Right”), for each share of common stock outstanding on June 5, 2020 to the stockholders of record at the close of business on that date. Capitalized terms used herein and not otherwise defined herein shall have the meanings set forth in the Plan.
The Plan was approved by the ascena board to mitigate the likelihood of an “ownership change” within the meaning of Section 382 of the Internal Revenue Code of 1986, as amended (the “Code”), and thereby preserve the current ability of the Company to utilize certain net operating loss carryovers and other tax benefits of the Company (the “Tax Benefits”) to offset future income. If the Company were to experience an “ownership change,” as defined in Section 382 of Code, the Company’s ability to fully utilize the Tax Benefits on an annual basis would be substantially limited, and the timing of the usage of the Tax Benefits could be substantially delayed, which could therefore significantly impair the potential value of 

EXHIBIT 4.2 

those assets. The Plan is intended to act as a deterrent to any person or group acquiring “beneficial ownership” of 4.9% or more of the outstanding Common Stock, without the approval of the ascena board.
Exercise of Rights. On or after the Distribution Date, each Right would initially entitle the holder to purchase one one-thousandth of a share of the Company’s Series A Junior Participating Preferred Stock, par value $0.01 per share (the “Preferred Stock”), for a purchase price of $6.30 (subject to adjustment) (the “Purchase Price”). Under certain circumstances set forth in the Plan, the Company may suspend the exercisability of the Rights.
Definition of Acquiring Person. An “Acquiring Person” is a person or group that, together with affiliates and associates of such person or group, acquires beneficial ownership of 4.9% or more of the shares of common stock then outstanding, other than: (A) the Company, its subsidiaries and their respective employee benefit plans and persons holding shares of the Company’s common stock on behalf of such plans; (B) any stockholder that, as of the time of the first public announcement of approval of the Plan, beneficially owns 4.9% or more of the shares of common stock then outstanding, unless such person thereafter acquires an additional one percent (1%) of the then-outstanding shares of common stock, subject to certain exceptions (including pursuant to a dividend or distribution paid or made by the Company on the outstanding common stock or pursuant to a split or subdivision of the outstanding common stock); (C) a person who becomes an Acquiring Person solely as a result of the Company repurchasing shares of common stock or a stock dividend, stock split, reverse stock split or similar transaction effected by the Company (unless and until such person acquires additional shares, other than in certain specified exempt transactions); (D) certain stockholders who inadvertently or without knowledge of the terms of the Rights, becomes Acquiring Persons and who thereafter reduce the percentage of shares owned below 4.9%; (E) investment advisors to mutual funds, to the extent that such advisor does not hold and no single fund advised by such advisor holds 4.9% or more of the Company’s outstanding common stock, and (F) any other Person that the ascena board determines is exempt from the Plan, so long as such determination is made prior to such time as such Person becomes an Acquiring Person.
Flip-In. In the event that any person or group becomes an Acquiring Person, then, upon the Distribution Date, each holder of a Right will thereafter have the right to receive, upon exercise, common stock (or, in certain circumstances, cash, property or other securities of the Company), having a value equal to two times the exercise price of the Right. The exercise price is the Purchase Price times the number of units associated with each Right (initially, one). Notwithstanding any of the foregoing, following the occurrence of an Acquiring Person becoming such, all Rights that are, or (under certain circumstances specified in the Plan) were, beneficially owned by any Acquiring Person or its affiliates and associates and certain transferees thereof will be null and void.
Flip-Over. If, at any time after a Person becomes an Acquiring Person, the Company is acquired in a merger or other business combination transaction or 50% or more of its consolidated assets or earning power are sold, proper provision will be made so that each holder of a Right will thereafter have the right to receive, upon the exercise thereof at the then current Purchase Price, that number of shares of common 

EXHIBIT 4.2 

stock of the acquiring company which at the time of such transaction will have a market value of two times the Purchase Price.
Exchange. At any time following the Stock Acquisition Date but before the time the Acquiring Person becomes the beneficial owner of 50% or more of the outstanding shares of common stock, the ascena board may, at its option, exchange the Rights (other than Rights owned by such person or group which have become void), in whole or in part, for common stock at an exchange ratio of one share of common stock per Right (subject to adjustment); provided, that no holder is entitled to receive pursuant to such exchange common stock that would result in a beneficial ownership of more than 4.9% of the common stock then outstanding.
Expiration. The Rights and the Plan will expire on the earliest of (i) May 25, 2021, (ii) the time at which the Rights are redeemed or exchanged pursuant to the Plan, (iii) the repeal of Section 382 of the Code or any successor statute if the ascena board determines that the Plan is no longer necessary or desirable for the preservation of the Tax Benefits, or (iv) the beginning of a taxable year to which the ascena board determines that no Tax Benefits may be carried forward.
Redemption. At any time prior to such time as any Person becomes an Acquiring Person, the Company may redeem the Rights in whole, but not in part, at a price of $0.0001 per Right. Immediately upon the action of the ascena board ordering redemption of the Rights, the Rights will terminate and the only right of the holders of Rights will be to receive the $0.0001 redemption price.
Anti-Dilution Provisions. The Purchase Price payable, and the number of units of Preferred Stock or other securities or property issuable, upon exercise of the Rights, are subject to adjustment from time to time to prevent dilution (i) in the event of a stock dividend on, or a subdivision, combination or reclassification of, the Preferred Stock, (ii) if holders of the Preferred Stock are granted certain rights or warrants to subscribe for Preferred Stock or convertible securities at less than the current market price of the Preferred Stock, or (iii) upon the distribution to holders of the Preferred Stock of evidences of indebtedness or assets (excluding regular quarterly cash dividends) or of subscription rights or warrants (other than those referred to above). Generally, no adjustments to the Purchase Price of less than 1% will be made.
Amendments. For so long as the Rights are then redeemable, any of the provisions of the Plan may be amended by the ascena board without the approval of any holders of the Rights. At any time when the Rights are not then redeemable, the provisions of the Plan may be amended by the ascena board to make changes which do not adversely affect the interests of holders of Rights, cause the Rights again to become redeemable or cause the Plan to become otherwise amendable.
Purposes and Effects of Certain Provisions of the Certificate of Incorporation and By-laws

EXHIBIT 4.2 

The Certificate of Incorporation and By-laws provide for directors to be divided into three classes, as nearly equal in the number of directors as possible, with the directors in each class serving a three-year term.  Each director serves for a term ending on the date of the third annual meeting following the meeting at which such director was elected.

The Certificate of Incorporation provides that the affirmative vote of holders of at least 80% of the outstanding shares of voting stock is required to approve any business combination with any related person. However, such approval is not applicable to any particular business combination and such business combination shall require only such affirmative vote as may be required by law or otherwise, if such business combination has been approved by a majority of continuing directors at a meeting at which a continuing director quorum is present or such business combination involves ascena and a subsidiary in which a related person has no direct or indirect interest, subject to certain additional limitations.
The Certificate of Incorporation and By-laws provide that members of the ascena board of directors may be removed from office with or without cause, by stockholder action, at a meeting called for that purpose, by a vote of at least 80% of the shares of capital stock then entitled to vote at an election of directors.
The By-laws set forth certain procedures stockholders must follow in order to bring business for consideration at a stockholders’ meeting. Such procedures include, among other things, the requirement that stockholders must deliver a notice of the proposed business to the secretary and the general counsel of ascena not later than the close of business on the 90th day nor earlier than the close of business on the 120th day prior to the first anniversary of the date that the Company’s proxy statement was released to stockholders in connection with the previous year’s annual meeting of stockholders.
Delaware Anti-Takeover Law and Certain Certificate of Incorporation Provisions
Section 203 of the DGCL provides that if a person acquires 15% or more of the stock of a Delaware corporation, thereby becoming an “interested stockholder,” that person may not engage in certain business combinations with the corporation for a period of three years unless (1) the ascena board approved the acquisition of stock or business combination transaction prior to the time that the person became an interested stockholder; (2) the person became an interested stockholder and 85% owner of the voting stock of the corporation in the same transaction, excluding voting stock owned by directors who are also officers and certain employee stock plans; or (3) the business combination transaction is approved by the ascena board and by the affirmative vote of two-thirds of the outstanding voting stock which is not owned by the interested stockholder at an annual or special meeting. A Delaware corporation may elect not to be governed by Section 203. ascena has not made that election.Document

November 6, 2019
Justin MacFarlane

Dear Justin:
On behalf of the Board of Directors (the “Board”) of Ascena Retail Group Inc. (“Ascena” or the “Company”), I am excited to offer you the position of Executive Vice President and Chief Customer Officer of the Company.  If you accept this offer, your employment with the Company will commence on December 2, 2019 (the “Effective Date”), and as of the Effective Date, this letter will govern the terms and conditions of your employment with Ascena.   

									
	Job Title:	Executive Vice President and Chief Customer Officer

	
	Reporting To:	Chief Executive Officer of Ascena

	
	Location:	New York, NY

	
	Annualized Base Pay:	$675,000

Future base pay adjustments would be based on your performance, business results, economic and competitive factors, and approval from the Stock and Incentive Compensation Committee of the Board (the “Compensation Committee”).

	
	Incentive Compensation:	Commencing on the Effective Date, you will be eligible for participation in the Incentive Compensation (“IC”) program at a target level of 75% of your annualized base pay.  Maximum annual payout is double your target level (i.e., 200%), or $1,012,500 (based on your current annualized base pay).    For the Company’s fiscal 2020 IC program, your IC payment will not be less than your target level of $506,250.  Payments shall be made in the same form and timing as made to other senior executives of Ascena. The IC program is governed by and subject to the terms and conditions of the Ascena 2016 Omnibus Incentive Plan, as amended (or any successor plan) (the “2016 Plan”).  You must be employed by the Company at the time an IC payment is made in order to receive it.  

	

									
	Long Term Incentives:	In or about December 2019, subject to approval by the Compensation Committee and your continued employment, you will be granted an award of 100,000 non-qualified stock options under the 2016 Plan (the “Time-Based Options”).  The Time-Based Options will vest, subject to your continued employment, in equal installments on the first and second anniversaries of the grant date.  

In addition, in or about December 2019, subject to approval by the Compensation Committee and your continued employment, you will be granted an award of 50,000 non-qualified stock options under the 2016 Plan (the “Performance-Based Options”).  The Performance-Based Options will vest as follows, subject to your continued employment from the grant date through the applicable vesting date:  25% of the Performance-Based Options will be eligible to vest if the closing price of the Company’s common stock equals or exceeds $3 per share for a 20-consecutive trading day period on or prior to the third anniversary of the grant date (the “$3 Hurdle”); an additional 25% of the Performance-Based Options will be eligible to vest if the closing price of the Company’s common stock equals or exceeds $5 per share for a 20-consecutive trading day period on or prior to the third anniversary of the grant date (the “$5 Hurdle”); and the remaining 50% of the Performance-Based Options will be eligible to vest if the closing price of the Company’s common stock equals or exceeds $7 per share for a 20-consecutive trading day period on or prior to the third anniversary of the grant date (the “$7 Hurdle” and together with the $3 Hurdle and $5 Hurdle, the “Hurdles”); provided, however, if the $3 Hurdle, $5 Hurdle and/or the $7 Hurdle is actually achieved prior to the second anniversary of the grant date, the portion of the Performance-Based Options related to the achievement of the $3 Hurdle, $5 Hurdle and/or $7 Hurdle that was actually achieved prior to the second anniversary will vest on the second anniversary of the grant date, subject to your continued employment from the grant date through the second anniversary of the grant date, except as expressly provided herein.  If the $3 Hurdle, $5 Hurdle and/or $7 Hurdle is not actually achieved by the third anniversary of the grant date, all Performance-Based Options that did not vest as of the third anniversary will be forfeited for no consideration.  All grants, including the Time-Based Options and the Performance Based Options, are subject to the terms and conditions of the 2016 Plan, applicable Award Agreements and Plan Description/ Prospectus and are conditioned upon your compliance with the Restrictive Covenant Agreement (as amended by this letter).

In the event of your termination by the Company without “Cause” prior to a “Change in Control” (each as defined in the Company’s Executive Severance Plan as in effect from time to time (the “ESP”)) (a “Qualifying Termination”), the Performance-Based Options will be treated as follows, subject to your timely execution and non-revocation of a release used in connection with the ESP (the “Release Condition”):

•You will become vested in a pro rata portion of any outstanding and unvested Performance-Based Options for which the applicable Hurdle(s) were actually achieved prior to your Qualifying Termination.  Such pro rata portion will be calculated by multiplying the number of Performance-Based Options eligible to vest based on the actual achievement of the applicable Hurdle by a fraction, the numerator of which is the number of days from the grant date of the Performance-Based Options until the termination date and the denominator of which is 1,095.  Performance-Based Options that become vested on your Qualifying Termination will remain exercisable for 6 months but in no event later than the expiration date.
In the event that your employment with the Company terminates due to your death or Disability (as defined in the 2016 Plan) prior to the second anniversary of the grant date of the Performance-Based Options, then subject to your (or your estate’s or legal representative’s) satisfaction of the Release Condition, the portion of the Performance-Based Options for which the applicable Hurdle(s) were actually achieved prior to the date of termination will become immediately vested.  Performance-Based Options that become vested on your termination due to death or Disability will remain exercisable for 6 months but in no event later than the expiration date.

In the event of your “Change in Control Related Termination” (as defined in the ESP) and notwithstanding Section 2.2(c) of the ESP, the Performance-Based Options will be treated as follows:

•In the event of your Post-Change in Control Termination (as defined in the ESP), and provided that, on or prior to such Post-Change in Control Termination the $3 Hurdle has been satisfied, you will become vested in a portion of the Performance-Based Options based on linear interpolation (rounded to the nearest one-hundredth) between the (x) closing price of the Company’s common stock for the 20-consecutive trading day period immediately preceding the Post-Change in Control Termination (the “Termination Date Price”) and (y) the Hurdles between which the Termination Date Price falls (i.e., between the $3 Hurdle and $5 Hurdle or between $5 Hurdle and $7 Hurdle).  By way of example only, if the Termination Date Price is $4, you will become vested in (i) the portion of the Performance-Based Options that vest based on the achievement of the $3 Hurdle to the extent not vested in accordance with this letter prior to the date of your Post-Change in Control Termination and (ii) an additional 50% of the tranche of the Performance-Based Options that would vest upon actual achievement of the $5 Hurdle (i.e., an additional 12.5% of the Performance-Based Options granted pursuant to you).  If the Performance-Based Options remain outstanding following the Change in Control, the Hurdles shall be reasonably adjusted to account for the impact of the Change in Control.  Any portion of the Performance-Based Options that do not vest based on this paragraph will be forfeited for no consideration on the date of your Post-Change in Control Termination.

•In the event of your Pre-Change in Control Termination (as defined in the ESP), and provided that, on or prior to the date that the Change in Control is consummated the $3 Hurdle has been satisfied, the cash payment you will receive pursuant to Section 2.2(c) of the ESP, will include payment in respect of a portion of the Performance-Based Options based on linear interpolation (rounded to the nearest one-hundredth) between the (x) closing price of the Company’s common stock for the 20-consecutive trading day period immediately preceding the Change in Control (the “CIC Closing Date Price”) and (y) the Hurdles between which the CIC Closing Date Price falls (i.e., between the $3 Hurdle and $5 Hurdle or between $5 Hurdle and $7 Hurdle).  By way of example only, if the CIC Closing Date Price is $4, the cash payment you will receive pursuant to Section 2.2(c) of the ESP, will include payment in respect of (i) the portion of the Performance-Based Options that vest based on the achievement of the $3 Hurdle to the extent not vested in accordance with this letter prior to the date of your Pre-Change in Control Termination and (ii) an additional 50% of the tranche of the Performance-Based Options that would vest upon actual achievement of the $5 Hurdle (i.e., an additional 12.5% of the Performance-Based Options).  You will receive no payment under Section 2.2(c) of the ESP for any portion of the Performance-Based Options that do not vest based on this paragraph, which will be forfeited for no consideration on the date the Change in Control is consummated.

Subject to your continued employment with Ascena, you will next be considered for a long-term incentive award grant during the first annual long-term incentive award grant cycle occurring after the Effective Date (i.e., fall 2020).  The timing, form and amount of any future long-term incentive award grant will be determined by the Compensation Committee in its sole discretion.  

All awards are contingent upon and subject to the approval of the Board or the Compensation Committee under the 2016 Plan.  All awards are subject to the terms and conditions of the 2016 Plan or any other applicable plan and any award agreements thereunder.  

	

2

									
	Sign-On Payment:	Subject to your continued employment with Ascena, within 30 days following the Effective Date, the Company will pay you a cash sign-on payment in the amount of $250,000 (the “Sign-On Payment”).  If, prior to the first anniversary of the Effective Date, (x) you resign your employment for any reason or (y) the Company terminates your employment due to (i) a violation of Company policy or (ii) conduct giving rise to immediate discharge, then you will be required to repay the Sign-On Payment within 90 days of the cessation of your employment.

	
	Benefits:	You will be eligible to participate in the Company’s benefit plans the first day of the month coincident with or next following your first 30 days of employment and subject to the eligibility of such plans. Currently, these benefits include medical/pharmacy, dental, vision and life insurance. Enrollment information on these benefits will be forwarded to your home address from the Benefits Department prior to your eligibility date. The Company reserves the right, in its sole discretion, to amend, change or discontinue, in whole or in part, any and all of its benefits and/or benefit plans and programs, at any time for any reason. 

	
	Paid Time Off:	You are eligible for Flexible Paid Vacation and Sick Days in accordance with Ascena policy in effect from time to time.  Currently, you are eligible for the following paid holidays: New Year's Day, Martin Luther King Day, Memorial Day, Independence Day, Labor Day, Thanksgiving, the day after Thanksgiving, and Christmas. Associates may be eligible for additional holidays designated by their brand each year. Holiday pay is not payable upon termination.

	
	Associate Discount:	You will be eligible to receive a discount at all Justice, Lane Bryant, Catherines, Ann Taylor, LOFT and Lou & Grey locations in accordance with Ascena policy.

	
	401(k) Retirement Plan:	You are eligible to participate in the Company’s 401(k) Savings Plan (the “401(k) Plan”) once you have completed 1,000 hours of service within a 12 month period and are at least 21. Once you are eligible, you may enter the 401(k) Plan beginning the next calendar quarter (January, April, July and October). The 401(k) Plan allows you the opportunity to defer as much as 75%, up to the IRS limit, into the 401(k) Plan. Currently, Ascena matches on a dollar-for-dollar basis the first 3% of your eligible pay you contribute each pay period and then $.50 for every dollar you contribute between 4% and 5% of your eligible pay. You are 100% vested in the matching contributions.  Your participation in the 401(k) Plan will be subject to, and in accordance with, the terms and conditions of the 401(k) Plan as in effect from time to time.

	

3

									
	Non-Qualified Deferred Compensation Plan:	You will be eligible to participate in the Company’s Executive Retirement Plan (the “ERP”) on the first calendar quarter following the Effective Date. The ERP provides you with the following benefits:
•Ability to defer pre-tax payroll deductions reducing taxable income;
•Discretionary employer matching contributions;
•Earnings accumulate tax deferred; and
•Flexible distribution options.
Your participation in the ERP will be subject to, and in accordance with, the terms and conditions of the ERP as in effect from time to time.

	
	Executive Severance
Plan:

	As of the Effective Date, you will be eligible to participate in the ESP in accordance with and subject to the terms and conditions of the ESP as in effect from time to time.  If you resign your employment for any reason or your employment is terminated by the Company for any reason other than due to a Non-Change in Control Termination or a Change in Control Related Termination, you will not be eligible for any severance payments from the Company under the ESP or otherwise.  Notwithstanding anything to the contrary, in no event shall there be any duplication of severance payments or benefits under any plan, program or policy, or under this letter or the Restrictive Covenant Agreement.

	
	Restrictive Covenants:	This offer is subject to and conditioned upon your execution of the Company's standard form of Confidentiality, Non-Solicitation and Non-Competition Agreement (the “Restrictive Covenants Agreement”) in the form attached hereto as Exhibit A.   From and after the Effective Date, the non-competition and non-solicitation restrictions applicable to you under the Restrictive Covenants Agreement shall apply without any requirement of the Company to make any additional payments to you in the event of your termination by the Company without Cause and if you are receiving severance payments and benefits under the ESP.	

At the Company, an employment at-will relationship prevails and the employment relationship can be terminated with or without notice, at any time, by either you or Ascena.  You will be required to comply with all applicable policies and procedures adopted by the Company from time to time, including without limitation the Company’s Code of Business Conduct and other policies relating to business ethics, conflict of interest, non-discrimination and non-harassment, confidentiality and protection of trade secrets. 
Representations:   This offer is based on your representation that you are under no legal or contractual impediment to accept our offer and perform the anticipated services. You agree and acknowledge that you have provided the Company with a true and complete copy of any non-competition and/or non-solicitation restrictions to which you may be subject.  You also agree and acknowledge that you have not and will not divulge to the Company, or use for the benefit of the Company, any trade secret or confidential or proprietary information of any prior employer or other person or entity.  You represent that you have provided the Company with complete and accurate information concerning amounts you are required to repay your prior employer due to your acceptance of the Company’s offer of employment.  You further represent that you are not currently and have never been the subject of any 
4

allegation or complaint of harassment, discrimination, retaliation or misconduct in connection with your prior employment or otherwise, and have not been a party to any settlement agreement or nondisclosure agreement relating to such matters. You acknowledge the truth of these statements as the Company is basing important business decisions on these representations.  
Taxes:  Any payments or benefits to be made or provided to you pursuant to this letter shall be subject to any withholding tax (including social security contributions and federal income taxes) as shall be required by federal, state and local withholding tax laws.  This letter is intended to be exempt from, or comply with, the requirements of Section 409A of the Internal Revenue Code of 1986 and the guidance promulgated thereunder, and will be interpreted, administered and operated in a manner consistent with that intent.  Each payment to you shall be treated as a separate payment, and any right to a series of installment payments is to be treated as a right to a series of separate payments.  Payments and benefits that may be provided to you under the ESP shall be subject to Section 7.8 of the ESP.
Entire Agreement:  This letter, together with the Restrictive Covenants Agreement, sets forth the entire agreement and understanding between you and the Company relating to the subject matter hereof and, except as expressly set forth herein, supersedes any and all prior agreements, arrangements and understandings, written and oral, relating to the subject matter hereof, including the Independent Contractor Agreement between you and the Company dated as of June 17, 2019 (the “Independent Contractor Agreement”), except that (i)  Section 6 of the Independent Contractor Agreement shall continue in effect in accordance with its terms with respect to your period of service as an independent contractor prior to the Effective Date and (ii) the Confidentiality Agreement between you and the Company dated as of June 13, 2019 shall continue in effect in accordance with its terms with respect to your period of service as an independent contractor prior to the Effective Date.
Governing Law:  This offer letter shall be governed by and construed and enforced in accordance with the laws of the State of New York, without regard to conflicts of laws principles.
Waiver and Release:  In consideration of the terms, conditions and benefits, monetary and otherwise, set forth in this letter agreement, you hereby release and waive any and all legal and contractual claims and claims of entitlement, know or unknown, that you have or may have against Ascena and/or its affiliates, directors, officers or employees, based on any facts, events or circumstances occurring through the date you sign this letter, other than with respect to any rights to payment for services rendered to the Company as an independent contractor prior to the Effective Date.  You hereby acknowledge that you are not aware of any claims you may currently have against Ascena and/or its affiliates, directors, officers or employees.
Please sign both copies of this letter, keep one for your records and return one to me.
Once again, congratulations on your new role.
Sincerely,                        I accept your offer as specified above.    
/s/ Gary Muto                        /s/ Justin MacFarlane        
Gary Muto                        Justin MacFarlane
Chief Executive Officer                    Date:    November 11, 2019    
5

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00317-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00317-of-00352.parquet"}]]