Document:

EX-10.1

 Exhibit 10.1 

DESTINATION MATERNITY CORPORATION 

2013 MANAGEMENT INCENTIVE PROGRAM 

SECTION 1. Purpose; Definitions. The purpose of the Destination Maternity Corporation 2013 Management Incentive Program
(the “Program”) is to enable Destination Maternity Corporation (the “Company”) and its affiliated companies to motivate and reward favorable performance by providing cash bonus payments based upon the achievement of
pre-established and objective performance goals for each fiscal year. 
 For purposes of the Program, the following terms will have the
meanings defined below, unless the context clearly requires a different meaning: 
 (a) “Affiliate” means, with respect to
any Person, any other person that, directly or indirectly, is in control of, is controlled by, or is under common control with, such Person. For purposes of this definition, the term “control,” including its correlative terms
“controlled by” and “under common control with,” mean, with respect to any Person, the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such Person, whether
through the ownership of voting securities, by contract or otherwise. 
 (b) “Award” means a cash bonus under the Program.

 (c) “Board” means the Board of Directors of the Company, as constituted from time to time. 

(d) “Code” means the Internal Revenue Code of 1986, as amended, and any successor thereto. 

(e) “Committee” means the Compensation Committee of the Board, and shall consist of members of the Board who are not
employees of the Company or any affiliate thereof and who qualify as “outside directors” under Section 162(m) of the Code. 

(f) “Fiscal Year” means the fiscal year of the Company. 

(g) “Participant” means the executive officers of the Company and any other key employee of the Company or any Affiliate with
the title of “manager” or above selected by the Committee to participate in the Program. 
 (h) “Person” means an
individual, a corporation, a partnership, an association, a trust or any other entity or organization. 
 (i) “Performance
Period” means each Fiscal Year or another period as designated by the Committee, so long as such period does not exceed one year. 

SECTION 2. Administration of Program. The Committee shall administer and interpret the Program, provided, that, the
Program will not be interpreted in a manner that causes an Award intended to qualify as “qualified performance-based compensation” under Section 162(m) 

  
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of the Code to fail to so qualify. The Committee shall have the power, from time to time, to: (i) select Participants; (ii) determine the amount of cash to be paid pursuant to each
Participant; (iii) determine the terms and conditions of each Award; (iv) establish the performance objectives for any Performance Period in accordance with Section 3 and certify whether such performance objectives have been obtained;
(v) establish and amend rules and regulations relating to the Program, and to make all other determinations necessary and advisable for the administration of the Program; and (vi) correct any defect, supply any omission or reconcile any
inconsistency in the Program or any Award. 
 Nothing in the Program shall be deemed to limit the ability of the Committee to grant Awards
to Participants under the Program which are not intended to qualify as “qualified performance-based compensation” under Section 162(m) of the Code and which are not exempt from the limitations thereof. 

All decisions made by the Committee pursuant to the Program shall be made in the Committee’s sole and absolute discretion and shall be
final and binding on the Participants, and the Company. No member or former member of the Board or the Committee shall be liable for any act, omission, interpretation, construction or determination made in connection with the Program other than as a
result of such individual’s willful misconduct. 
 SECTION 3. Awards.  

(a) Performance Criteria. Within 90 days after each Performance Period begins (or such other date as may be required or permitted under
Section 162(m)), the Committee shall establish the performance objective or objectives that must be satisfied in order for a Participant to receive an Award for that Performance Period. In addition, at that time the Committee will also specify
the portion of Awards that will be payable upon the full, partial or over-achievement of specified performance objectives for that Performance Period. Except with respect to an Award that is not intended to constitute “qualified
performance-based compensation” under Section 162(m) of the Code, such performance objectives will be based upon the following criteria, as determined by the Committee for the applicable Performance Period (subject to adjustment in
accordance with Section 3(b), below): 
 (i) the attainment of certain target levels of, or a specified percentage
increase in, (1) revenues (including, without limitation, specified subsets or measures of revenue, such as “net sales” or “comparable sales”), (2) income before taxes and extraordinary items, (3) net income,
(4) operating income, (5) earnings before income tax, (6) earnings before interest, taxes, depreciation and amortization, (7) after-tax or pre-tax profits, (8) operational cash flow, (9) return on capital employed or
returned on invested capital, (10) after-tax or pre-tax return on stockholders’ equity, (11) the price of our common stock or (12) a combination of the foregoing; 

(ii) the achievement of a certain level of, reduction of, or other specified objectives with regard to limiting the level of
increase in, our bank debt or other public or private debt or financial obligations; 

  
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 (iii) earnings per share or the attainment of a specified percentage increase in
earnings per share or earnings per share from continuing operations; 
 (iv) the attainment of certain target levels of, or a
specified increase in, economic value added targets based on a cash flow return on investment formula; 
 (v) the growth in
the value of an investment in our common stock assuming the reinvestment of dividends; 
 (vi) the attainment of a certain
level of, reduction of, or other specified objectives with regard to limiting the level in or increase in all or a portion of controllable expenses or costs or other expenses or costs; and/or 

(vii) any other objective business criteria that would not cause an Award to fail to constitute “qualified
performance-based compensation” under Section 162(m) of the Code. 
 Performance goals may be established on a Company-wide basis or with respect
to one or more business units, divisions, Affiliates, or products; and in either absolute terms or relative to the performance of one or more comparable companies or an index covering multiple companies. The performance objectives for a particular
Performance Period need not be the same for all Participants. 
 (b) Adjustments to Performance Criteria. The Committee may provide,
at the time the performance goals are established in accordance with Section 3(a), that adjustments will be made to the applicable performance goals to take into account, in any objective manner specified by the Committee, the impact of one or
more of the following: (i) gain or loss from all or certain claims and/or litigation and insurance recoveries, (ii) the impairment of tangible or intangible assets, (iii) stock-based compensation expense, (iv) extraordinary,
unusual or infrequently occurring events reported in the Company’s public filings, (v) restructuring activities reported in the Company’s public filings, (vi) investments, dispositions or acquisitions, (vii) gain or loss
from the disposal of certain assets, (viii) gain or loss from the early extinguishment, redemption, or repurchase of debt, (ix) cash or non-cash charges related to store closing expenses, (x) changes in accounting principles that
become effective during the performance period, or (xi) any other item, event or circumstance that would not cause an Award to fail to constitute “qualified performance-based compensation” under Section 162(m) of the Code. 

Any adjustment described in this Section 3(b) may relate to the Company or to any subsidiary, division or other operational unit of the
Company or its Affiliates, as determined by the Committee at the time the performance goals are established. Any adjustment shall be determined in accordance with generally accepted accounting principles and standards, unless such other objective
method of measurement is designated by the Committee at the time performance goals are established. Notwithstanding the foregoing, adjustments will be made as necessary to any performance criteria related to the Company’s stock to reflect
changes in corporate capitalization, including a recapitalization, stock split or combination, stock dividend, spin-off, merger, reorganization or other similar event or transaction affecting the Company’s stock. 

  
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 (c) Maximum Award Amount Payable. The maximum amount payable hereunder to any single
Participant with respect to any particular Performance Period will not exceed $1,950,000. 
 (d) Payment Conditioned on Continued
Employment. No Participant will be entitled to any payment hereunder with respect to any particular Performance Period unless he or she has remained continuously employed by the Company or its Affiliates through the last day of that Performance
Period (or such other date as is specified by the Committee at the time that performance objectives are established). 
 (e) Negative
Discretion. Notwithstanding anything else contained in Section 3(b) to the contrary, the Committee shall have the right, in its absolute discretion, (i) to reduce or eliminate the amount otherwise payable to any Participant under
Section 3(b) based on individual performance or any other factors that the Committee, in its discretion, shall deem appropriate and (ii) to establish rules or procedures that have the effect of limiting the amount payable to each
Participant to an amount that is less than the maximum amount otherwise authorized under Section 3(b). 
 SECTION 4.
PAYMENT. To the extent that the Committee determines at the time of grant to qualify an Award as performance-based compensation under Section 162(m) of the Code, no Award shall be payable except upon written certification by the
Committee that the performance goals have been satisfied to a particular extent and that any other material terms and conditions precedent to payment of an Award have been satisfied. Payment hereunder will be made as soon as practicable after the
Committee certification referenced above is completed, but in no event later than 2 1⁄2 months following the end of the Fiscal Year that includes the last day
of the Performance Period to which the Award relates. 
 SECTION 5. GENERAL PROVISIONS 

(a) Amendment and Termination. The Board or the Committee may at any time amend, suspend, discontinue or terminate the Program;
provided; however, that no such action shall be effective without approval by the shareholders of the Company to the extent necessary to continue to qualify the amounts payable hereunder to Participants as “qualified performance-based
compensation” under Section 162(m) of the Code. 
 (b) Unsecured Creditor Status. A Participant entitled to payment
hereunder shall rely solely upon the unsecured promise of the Company and nothing herein contained shall be construed to give to or vest in a Participant or any other person now or at any time in the future, any right, title, interest, or claim in
or to any specific asset, fund, reserve, account, insurance or annuity policy or contract, or other property of any kind whatever owned by the Company, or in which the Company may have any right, title, or interest, nor or at any time in the future.

 (c) Non-Assignment of Awards. The Participant shall not be permitted to sell, transfer, pledge or assign any amount payable
pursuant to the Program or an Award, provided that the right to payment of an Award earned hereunder may pass by will or the laws of descent and distribution. 

  
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 (d) Separability. If any term or condition of the Program shall be invalid or
unenforceable to any extent or in any application, then the remainder of the Program, with the exception of such invalid or unenforceable provision, shall not be affected thereby, and shall continue in effect and application to its fullest extent.

 (e) Continued Employment. Neither the adoption of the Program nor the execution of any document in connection with the Program
will: (i) confer upon any employee of the Company or an Affiliate any right to continued employment with the Company or such Affiliate, or (ii) interfere in any way with the right of the Company or such Affiliate to terminate the
employment of any of its employees at any time. 
 (f) Incapacity. If the Committee determines that a Participant is unable to care
for his affairs because of illness or accident, any amount due such Participant under the Program may be paid to his spouse, child, parent, or any other person deemed by the Committee to have incurred expense for such Participant (including a duly
appointed guardian, committee, or other legal representative), and any such payment shall be a complete discharge of the Company’s obligation hereunder. 

(g) Withholding. The Company shall withhold the amount of any federal, state, local or other tax, charge or assessment attributable to
the payment of any Award as it may deem necessary or appropriate, in its sole discretion. 
 (h) Governing Law. The Program and all
Awards granted hereunder will be governed by and construed in accordance with the laws and judicial decisions of the Commonwealth of Pennsylvania, without regard to the application of the principles of conflicts of laws. 

Revised effective 12/03/2014 

  
 5EX-10.2

 Exhibit 10.2 

 
  
 

 
 December 3, 2014 

VIA HAND DELIVERY 
 Mr. Christopher F.
Daniel 
 c/o Destination Maternity Corporation 
 456 North
Fifth Street 
 Philadelphia, PA 19123 
  

	Re:	Special Bonus Award; Amendment to Employment Agreement 

 Dear Christopher: 

Reference is hereby made to the Employment Agreement dated as of April 11, 2011 (as amended December 7, 2013, the
“Agreement”) by and between Destination Maternity Corporation (the “Company”) and Christopher F. Daniel (“Executive” or “you”). 

As you are aware, the Company has elected to change its fiscal year such that the Company’s fiscal year will now begin on or about February 1st each
year. Additionally, as you are aware, the Compensation Committee of the Company’s Board of Directors (the “Committee”) has determined that bonuses will not be awarded to management employees with respect to the period
from October 1, 2014 until January 31, 2015 (the “Transition Period”). You agree and acknowledge that the absence of a bonus opportunity for the Transition Period will not constitute “Good Reason” for
purposes of Section 5.6.4 of the Agreement and you expressly waive any right you might otherwise have to resign for “Good Reason” with respect to such absence of a bonus opportunity. 

In consideration of the waiver described above and in recognition of your contributions to the Company, you will be eligible to earn a special bonus of
$100,000 on the terms and conditions specified below (the “Special Bonus”). The Special Bonus will be paid to you as a cash lump-sum (less applicable withholding) on the first regularly scheduled payroll date that occurs at
least 10 days after November 1, 2015 (the “Payment Date”), provided you remain continuously employed by the Company through the Payment Date. If your employment by the Company ceases prior to the Payment Date due to a
termination by the Company without “Cause” (as defined in the Agreement) or due to your resignation for “Good Reason” (as defined in the Agreement, taking into account the waiver in the preceding paragraph), you will be paid the
Special Bonus within 45 days of the applicable cessation date, provided you execute and deliver to the Company a release in the form described in Section 5.1 of the Agreement and provided such release becomes irrevocable within 30 days of the
applicable cessation date. If your employment by the Company ceases prior to the Payment Date for any reason other than as described in the preceding sentence, you will not receive the Special Bonus. 

 

 
  
 Further, effective as of the date hereof, each of the
Company and you agree to the following modifications to the Agreement: 
  

	(1)	Section 4.2.1 of the Agreement is hereby amended and restated in its entirety as follows: 

“4.2.1. Commencing with the fiscal year beginning on February 1, 2015 and for each fiscal year thereafter ending during his
employment, Executive will be eligible to earn a performance bonus. The target amount of that bonus will be 70% percent of Executive’s Base Salary for the applicable fiscal year (the “Target Bonus”). The performance period for this
bonus opportunity may be segmented into such shorter periods as the Compensation Committee of the Board (the “Committee”) may determine in its reasonable discretion, provided the aggregate bonus opportunities (at target) for the applicable
fiscal year are at least equal to the Target Bonus. The actual bonus payable with respect to any performance period will be determined by the Committee, based on the achievement of corporate and individual performance objectives established for the
applicable period. Any bonus payable under this paragraph will be paid as soon as administratively practicable following the end of the applicable performance period, but in no event later than 2 1/2 months after the end of the fiscal year that
includes the last day of the applicable performance period, and except as otherwise provided in Section 5.1.2, will only be paid if Executive remains continuously employed by the Company through the actual bonus payment date.” 

 

	(2)	Section 4.2.3 of the Agreement is hereby amended and restated in its entirety to provide as follows: 

“4.2.3. The Committee may choose to provide Executive’s performance bonus opportunity through the Company’s Management Incentive
Program, in which case such bonus opportunity will be subject to the additional terms and conditions therein contained.” 
  

	(3)	Section 5.1.2 of the Agreement is hereby amended and restated in its entirety as follows: 

“5.1.2. payment of any performance bonus otherwise payable (but for the cessation of Executive’s employment) with respect to a
performance period ended prior to the cessation of Executive’s employment;” 
  

	(4)	Section 5.1.3 of the Agreement is hereby amended and restated in its entirety as follows: 

“5.1.3. for such terminations occurring after February 1, 2015, payment of a pro-rata performance bonus for the bonus performance
period in which termination occurs, determined and paid in the same manner and at the same time as the Executive’s performance bonus would otherwise have been determined and paid for the applicable performance period, but for the termination.
Such performance bonus will be pro-rated based on the number of days of the applicable performance period transpired prior to the date of termination relative to the total number of days contained in the applicable performance period;” 

All terms of the Agreement, as modified by this letter agreement, are hereby acknowledged and ratified. 

  
 

 

 

 
  
 If you are in agreement with the terms of this letter
agreement, please execute and return a fully executed copy of this letter agreement to me. 
  

			
	Sincerely,
	
	DESTINATION MATERNITY CORPORATION
		
	By:	 	 /s/ Anthony M. Romano

	Title:	 	Chief Executive Officer

 Agreed on this 3rd day of December, 2014: 
  

	
	 /s/ Christopher F. Daniel

	Christopher F. Daniel

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