Document:

jaffe2019may1conformed

                                                         EXECUTION VERSION                                                                                                    May 1, 2019    VIA HAND DELIVERY    David Jaffe    Dear David:    This Transition and Separation Agreement and General Release (“Agreement”) will confirm the  terms of your retirement from Ascena Retail Group, Inc. (the “Company”) at the request of the  Company’s Board of Directors  (the “Board”) on mutually  agreeable terms as  set  forth below.   For  the  purposes  of  this  Agreement,  the  Company  also  includes any parent,  affiliates,  predecessors,  successors,  subsidiaries,  and  other  related  entities and  each  of  their past  and/or  present  officers,  directors,  employees,  and  agents.  You  and the  Company (collectively,  the  “Parties”) agree that this Agreement represents the full and complete agreement concerning your  separation from employment with the Company.        1.    Transition Date:  Effective May 1, 2019 (the “Transition Date”), you will retire as the  Company’s  Chairman  and  Chief  Executive  Officer,  although  you  will  continue  to  serve  as  a  member  of  the  Board  following  the  Transition  Date.   Effective  on  the  Transition  Date, you  hereby resign from any and all positions you hold at the Company, including all positions you  hold as an officer, director or fiduciary, other than your position as a member of the Board, and  you agree to execute the resignation letters attached hereto as Exhibit A as well as such other  resignation letters reasonably requested by the Company.  Provided you execute this Agreement,  from the Transition Date through June 28, 2019 (such period, the “Advisory Period”), you will  continue to serve as an employee of the Company, and will be a senior advisor to the Company’s  Chief Executive Officer.  During the Advisory Period, you will be expected to perform, and you  will perform, services equal to 25% of the average level of bona fide services that you provided  to the Company prior to the Transition Date (the intent of the foregoing is that you will not incur  a “separation from service,” within the meaning of Section 409A of the Internal Revenue Code  of 1986, as amended (the “Code”), during the Advisory Period).  During the Advisory Period,  you  will  provide  such  services  as  you  and the Chief  Executive  Officer  and/or  the  Interim  Executive  Chair  deem mutually  and reasonably appropriate.  In  consideration  for  providing  services during  the  Advisory  Period,  you  will  be receive a  salary  at  the  annualized  rate  of  $250,000, payable  in  accordance  with  the  Company’s  normal  payroll  practices  and  subject  applicable withholdings.   Your last day of employment with the Company will be Friday, June 28, 2019 (the “Separation  Date”), at which time you will incur a “separation from service” within the meaning of Section  409A.  On the Separation Date, regardless of whether you sign this Agreement, you will receive  your  base  salary  through  the  Separation  Date,  less  applicable  withholding.  In  addition,  regardless  of  whether  you  sign  this  Agreement, you  will  be  entitled  to  receipt  of  your  vested     107624016v8  

 

account balance under the Company’s Executive Retirement Plan (the “ERP”), payable to you in  accordance with your deferral elections under the ERP (for the avoidance of doubt, the Parties  stipulate that your deferral election is to receive a cash lump sum) and subject to a six-month  delay pursuant to Section 409A of the Code, such that, for purposes of clarity, you will receive  your entire account balance under the ERP on Thursday, January 2, 2020.   2.    Consideration:  Provided that you sign and return this Agreement without revoking it as  set forth in Paragraph 26 of this Agreement and provided further that  you sign and return the  supplemental release attached hereto as Annex 1 without revoking it as set forth in Paragraph __  of the supplemental release, the Company will, following your Separation Date:    (a)   Pay you the equivalent of 24 months of pay (the “Severance Period”) at your annual rate        of  salary  of  $1,000,000 (for  clarity,  for  an  aggregate  amount  of  $2,000,000),  less        applicable  withholding.  This  amount will  be  paid  in substantially  equal installments        during  the  Severance  Period on  the  same bi-weekly pay  schedule  as  the  Company’s        payroll, beginning with the first normal pay period after your Separation Date.         Although  the  Company  does  not  guarantee  any  particular  tax  treatment relating  to  the        payments and benefits to be provided to you under this Agreement, it is the intent of the        Parties that all payments and benefits under this Agreement comply with or be exempt        from Section 409A of the Code and, accordingly, to the maximum extent permitted, this        Agreement shall  be  interpreted  to  be  in  compliance  therewith.  The  Parties  agree  to        reasonably cooperate to take all further actions necessary to satisfy the requirements of        Section 409A of the Code.   (b)   Subject  to your and/or your covered  dependents’,  as  applicable,  timely  election  of        continuation  coverage  under  the  Consolidated  Omnibus  Budget  Reconciliation  Act  of        1985,  as  amended  (“COBRA”), and  your  or  your  covered  dependents’,  as  applicable,        continued payment of premiums at the same level and cost as if you were an employee of        the Company (excluding, for purposes of calculating cost, an employee’s ability to pay        premiums  with  pre-tax  dollars), for  a  period  though the  earlier  of  (x)  the  applicable        period  that you  and/or your covered  dependents,  as  applicable,  are  eligible  for        continuation coverage under COBRA and (y) you becoming eligible for coverage under        the health and medical insurance plans of a subsequent employer, (1) provide  you and        your  eligible  dependents continued  participation  in the  Company’s (or  its  successors)        health and medical insurance plans (to the extent permitted under applicable law and the        terms of such plan), in a manner intended to avoid any excise tax under Section 4980D of        the  Code and  (2)  pay  you $2,000  per  month  for  each  month  you  and  your  covered        dependents  receive COBRA (but in  no event  shall the payments  exceed  $36,000), less        applicable withholding; and   (c)   Pay you a lump sum, less applicable withholding, which is equivalent to the amount that        you  would  have  been  eligible  to  receive  under  the Spring  season short-term  incentive        bonus plan, as in effect and as that program may be modified, from time to time, based on        actual achievement of the performance goals established for the Spring season, had you        been employed by the Company at the time that payments to active employees are made        in  or  about September/October 2019,  prorated  as  applicable based  upon  your service                                        - 2 -  107624016v8  

 

      from the start of the Spring season through the Separation Date and based on a blended        rate  of  your  base  salary  in  effect  prior  to  the  Transition  Date  and  your  base  salary  in        effect from the Transition Date through the Separation Date.  The Parties agree that this        payment  will  be  made  no  earlier  than  the  time  that  payments  to  active  employees are        made under the applicable seasonal short-term incentive bonus plan; provided, however,        that, notwithstanding the foregoing, this payment will, in all events, be paid no later than        the end of the “applicable 2 1⁄2 month period” under Treasury Regulation Section 1.409A-       1(b)(4), issued pursuant to Section 409A.   3.    Withholding on Payments:  Taxes, applicable withholding and authorized or required  deductions will be deducted from all payments to you.   4.    Employee Benefits:  Except as expressly provided herein and/or as otherwise required by  law, your  employee  benefits,  including  but  not  limited  to medical/hospitalization  and  dental  insurance  benefits, life insurance,  short-term  disability  and long-term  disability  insurance  coverage, and 401(k) plan participation, will terminate on your Separation Date.    5.    COBRA:  Following  your Separation Date,  you  may  elect  to  continue  any  employer- sponsored group health plan coverage you may have at your own expense, except as otherwise  provided in Paragraph 2(b) of this Agreement, pursuant to a federal law known as COBRA. You  will receive, under separate cover, information regarding continuing your coverage pursuant to  COBRA. Additionally, you may have other options available to you when you lose group health  plan coverage.  For example, you may be eligible to buy an individual plan through the Health  Insurance Marketplace, where you may qualify for lower costs on your monthly premiums and  lower out-of-pocket costs, provided that you enroll in Marketplace coverage within limited time  periods  following  your  Separation  Date.  Additionally,  you  may  qualify  for  a  30-day  special  enrollment period for another group health plan for which you are eligible (such as a spouse’s  plan), even if that plan generally doesn’t accept late enrollees. Additionally, if you or any of your  dependents are eligible to enroll in Medicare, you are solely responsible for determining how any  COBRA coverage you elect is affected by Medicare eligibility, and how, when and under what  conditions  you  may  enroll  in  Medicare  without  any  penalty. You  are  responsible  for  your  selection of health coverage following your Separation Date and the Company has no obligation  or liability with respect to such coverage.   6.    Stock  Options and  Restricted  Stock  Units:  Provided  you  remain  employed  by  the  Company through the end of the Advisory Period, you will satisfy the “Total Years Test” with  respect to the stock options and restricted stock units granted to you under the Company’s 2016  Omnibus  Incentive  Plan,  as  amended  (and  any  predecessor  plan) (the  “2016  Plan), that  are  outstanding and unvested as of the Separation Date.  The Company agrees not to terminate your  employment  without  Cause  prior  to  the  Separation  Date.  As  a  result  of  satisfying  the  Total  Years Test, (i) all stock options that are outstanding and unvested as of the Separation Date will  continue  to  vest  in  accordance  with  the  terms of  the  2016  Plan  and  the  award  agreement(s)  thereunder and  options  that  become  vested  on  or  after  the  Separation  Date  will  remain  exercisable for four years (but in no event beyond the expiration date of the stock option) and (ii)  all restricted stock units that are outstanding and unvested as of the Separation Date will become  fully vested and will be settled in accordance with the terms of the 2016 Plan and the applicable  award agreement(s) thereunder.                                          - 3 -  107624016v8  

 

7.    Accrued Vacation:  You will be paid for all accrued but unused vacation if required by  the applicable policy under which the vacation was earned.  You understand that you are entitled  to this payment regardless of whether you sign this Agreement.   8.    No Interference with Rights:  The Parties agree that nothing in this Agreement shall  be construed to prohibit you from challenging illegal conduct and/or engaging in protected  activity, including without limitation filing a charge or complaint with, and/or participating  in  any  investigation  or  proceeding  conducted  by, the  Equal  Employment  Opportunity  Commission (the  “EEOC”),  the  National  Labor  Relations  Board (the  “NLRB”),  the  Securities and Exchange Commission (the “SEC”), and/or any other federal, state, or local  government  agency.   Further,  the  Parties  agree  that  nothing  in  this  Agreement  shall  be  construed to interfere with the ability of any federal, state, or local government agency to  investigate any such charge or complaint, or your ability to communicate voluntarily with,  including  providing  documents  or other  information  to,  any  such  agency.   However,  by  signing  this  Agreement, you  understand that you  are waiving your right  to  receive  individual relief (including without limitation back pay, front pay, reinstatement, or other  legal or equitable relief) based on claims asserted in any such charge or complaint, except  where  such  a  waiver  is  prohibited  and  except  for  any  right you may  have  to  receive  a  payment from a government agency (and not the Company) for information provided to  the  government  agency. You  understand that your release  of  claims  as  contained  in  this  Agreement does not extend to any rights you may have under any laws governing the filing  of claims for COBRA, unemployment, disability insurance, and/or workers’ compensation  benefits. You  further  understand that  nothing  herein  shall  be  construed  to  prohibit you  from: (a) challenging the Company’s failure to comply with its promises to make payment  and  provide  other consideration  under  this  Agreement;  (b)  asserting your right  to  any  vested  benefits  to  which you  are entitled  pursuant to  the  terms  of  the  applicable  plans  and/or applicable law; (c) challenging the knowing and voluntary nature of your release of  claims  under  the  Age  Discrimination  in  Employment  Act;  (d)  asserting  any  claim  that  cannot lawfully be waived by private agreement; and/or (e) asserting any claim that may  arise after the date this Agreement was signed.   Nothing in this Agreement shall be construed to prohibit you from reporting an event that  you reasonably  and  in  good  faith  believe  is  a  violation  of  law  to  the  relevant  law- enforcement  agency  (including  but  not  limited  to  the  EEOC,  Department  of  Justice,  the  SEC, Congress, the Department of Labor, and any Inspector General), from cooperating in  an investigation conducted by such a government agency, or making other disclosures that  are  protected  under  the  whistleblower  provisions  of  any  law  or  regulation.  This  may  include  disclosure  of  trade  secret  or  confidential  information  within  the  limitations  permitted by the 2016 Defend Trade Secrets Act (the “DTSA”).  You are hereby provided  notice that under the  DTSA, (1) no individual will be held criminally or civilly liable under  federal  or state  trade  secret  law  for  the  disclosure  of  a  trade  secret  (as  defined  in  the  Economic  Espionage  Act)  that:  (A)  is  made  in  confidence  to  a federal, state,  or  local  government official, either directly or indirectly, or to an attorney; and made solely for the  purpose  of  reporting  or  investigating  a  suspected  violation  of  law;  or (B)  is  made  in  a  complaint or other document filed in a lawsuit or other proceeding, if such filing is made  under seal so that it is not made public; and, (2) an individual who pursues a lawsuit for  retaliation by an employer for reporting a suspected violation of the law may disclose the                                        - 4 -  107624016v8  

 

trade secret to the attorney of the individual and use the trade secret information in the  court  proceeding,  if  the  individual  files  any  document  containing  the  trade  secret  under  seal, and does not disclose the trade secret, except as permitted by court order.   9.    Reimbursement of Business Expenses: As soon as practicable after the Transition Date  but  in  no  event  later  than 2  weeks  of  your  Separation  Date,  you  agree  to  submit appropriate  documentation of all authorized business expenses incurred in connection with your performance  of duties for the Company, and the Company will reimburse you in accordance with Company  policy.   You  should  submit  such  documentation  to the  head  of  Human  Resources  for  the  Company.   10.   Cooperation:   Except  as  otherwise  provided  in  Paragraph  8  of  this  Agreement,  after  your Separation Date, you agree to be reasonably available during normal business hours upon  reasonable advanced requests to cooperate (but only truthfully) with the Company and provide  information as to matters which you were personally involved, or have information on, during  your employment with the Company and which are or become the subject of litigation or other  dispute.  In the event of such cooperation, you shall be reimbursed for your reasonable expenses  in connection therewith.   11.   No Other Payments:  You understand and agree that absent this Agreement, you would  not otherwise be entitled to the consideration specified in this Agreement.  Further, by signing  this Agreement, you agree that you are not entitled to any payments and/or benefits that are not  specifically listed in this Agreement, including but not limited to benefits under the Company’s  Executive Severance Plan, the 2012 Cash Incentive Plan and/or any other bonus payment plans,  and the  Long Term  Incentive Program. You will, however, be entitled to  such benefits  as  are  provided for under the tax qualified retirement plans and non-qualified plans for the Company in  which you have (or will have) a vested right, such as the 2016 Plan, the 401(k) plan and the ERP.   You further agree and acknowledge that upon the Company’s providing the payments and other  benefits set forth in this Agreement, the Company has paid you in full any and all monies owed  to you in connection with your employment with the Company and separation from employment,  including but not limited to payment for all services performed on behalf of the Company, except  as otherwise specifically stated in this Agreement.   12.   General Release of All Claims:       Except as otherwise provided in this Agreement and with respect to the payments and benefits  set forth in this Agreement, you acquit, release, and forever discharge the Company of and from  all actions and causes of action, suits, debts, claims, and demands which may legally be waived  by private agreement, in law or in equity, which you ever had, or may now have, with respect to  any  aspect  of your employment  by,  and/or  separation  of  employment  from,  the  Company,  whether known or unknown to you at the time of execution of this Agreement, including, but not  limited to, claims for breach of contract (express or implied), personal injury, defamation and  wrongful  discharge;  claims  based  on  any  oral  or  written  agreements  or  promises,  contract,  constitutional  provision,  common  law,  public  policy,  and  tort;  claims  for  retaliation,  and/or  discrimination  or  harassment  in  employment;  and  claims  for  compensatory,  actual,  special,  consequential, reliance, punitive, exemplary and/or other damages for personal injuries, pain and  suffering, emotional distress, health care expenses, back pay, front pay, separation pay, wages,                                        - 5 -  107624016v8  

 

benefits, attorney’s fees, costs, interest or other monies, from the beginning of time through the  date that you sign this Agreement.   You agree that, except as otherwise provided in Paragraph 8 of this Agreement and except with  respect to the payments and benefits set forth in this Agreement, your covenants and releases, as  set forth in this Agreement, include a waiver of any and all rights or remedies which you ever  had or may now have against the Company, from the beginning of time through the date that you  sign this Agreement, under any present and/or future federal, state, local or foreign statute, law,  regulation, constitution, and/or common law, including, but not limited to: the New York State  Human Rights  Law; the New York City Administrative Code;  the New York  Labor  Law; the  New  York  Minimum  Wage  Act;  the  statutory  provisions  regarding  retaliation/discrimination  under the New York Worker’s Compensation Law; the New York City Earned Sick Time Act;  the New York City Human Rights Law; the New Jersey Law Against Discrimination; the New  Jersey  Family  Leave  Act;  the  New  Jersey  Conscientious  Employee  Protection  Act;  the  New  Jersey Wage Payment  Law; the New Jersey Wage  and Hour  Law; the New Jersey  Equal  Pay  Law;  the  New  Jersey  Smoker’s  Rights  Act;  the  New  Jersey  Lie  Detector  Test  Law;  the  New  Jersey Jury Duty Employee Protection Law; the New Jersey Worker Freedom From Intimidation  Act;  the  New  Jersey  Political  Activities  of  Employees  Law;  the  New  Jersey  Fair  Credit  Reporting Act; the retaliation provisions of the New Jersey Workers’ Compensation  Law; the  New Jersey Security and Financial Empowerment Act; the Millville Dallas Airmotive Plant Job  Loss  Notification  Act;  the  New  Jersey  Military  Leave  Law;  the  New  Jersey  Employment  Protection for Volunteer Emergency Responder Law; the New Jersey Social Media Privacy law;  the  New  Jersey  Opportunity  to  Compete  Act;  all  Municipal  Sick  Leave  Laws;  any  claims  for  violation of the New Jersey State Constitution; the Stop  Sexual  Harassment  in  the Workplace  Act; Title VII of the Civil Rights Act of 1964; the Civil Rights Act of 1866; the Civil Rights Act  of 1991; the Americans with Disabilities Act; the Equal Pay Act; the Family and Medical Leave  Act;  the  Employee  Retirement  Income  Security  Act;  the  Age  Discrimination  in  Employment  Act;  the  Older  Workers  Benefit  Protection  Act;  the  Genetic  Information  Non-Discrimination  Act;  the  Occupational  Safety  and  Health  Act;  the  National  Labor  Relations  Act;  the  federal  Worker  Adjustment  and  Retraining  Notification  Act;  the  Consolidated  Omnibus  Budget  Reconciliation Act; the Sarbanes-Oxley Ac of 2002, 18 U.S.C. §1514; Sections 748 (h)(i), 922  (h)(i) and 1057 of the Dodd-Frank Wall Street and Consumer Protection Act (the “Dodd Frank  Act”), 7 U.S.C. §26(h), 15 U.S.C. §78u-6(h)(i) and 12 U.S.C. §5567(a), but excluding from this  Agreement  any  right  you  may  have  to  receive  a  monetary  award  from  the  SEC  as  an  SEC  Whistleblower,  pursuant  to  the  bounty  provision  under  Section  922(a)-(g)  of  the  Dodd  Frank  Act, 7 U.S.C. Sec. 26(a)-(g);  and any similar federal, state or local statute or law applicable to  your   employment,  all  as  amended.   This  Agreement  is  also  intended  to  and  shall  release  the  Company from any and all wage and hour related claims arising out of or in any way connected  with your employment with the Company, to the maximum extent permitted by federal and state  law.  You further acknowledge that as  of the date  you have signed this Agreement,  you have  reported any and all work-related illnesses or injuries to the Company.    13.   No Claims Filed:  Except as otherwise provided in Paragraph 8 of this Agreement, you  represent that no claims, complaints or other proceedings are pending in any court or other forum  relating  directly  or  indirectly  to  your  employment  with  the Company and/or  separation  from  employment.                                         - 6 -  107624016v8  

 

14.   Confidential Information:     (a)   You agree that you shall not at any time, directly or indirectly, use, make available, sell,        disclose or otherwise communicate to any person, other than in the course of your duties        and  for  the  benefit  of the  Company,  any  business  and  technical  information  or  trade        secrets, nonpublic, proprietary or confidential information, knowledge or data relating to        the  Company whether  the  foregoing  shall  have  been  obtained  by you during your        employment by the Company (or any predecessors) or otherwise. The foregoing shall not        apply to information that (i) was known to the public prior to its disclosure to you; (ii)        becomes  generally  known  to  the  public  subsequent  to  disclosure  to you through  no        wrongful act by you or any of your representatives; or (iii) you are required to disclose by        applicable law, regulation or legal process (provided that you provide the Company with        prior  notice  of  the  contemplated  disclosure  and  cooperate  with the  Company at its        expense  in  seeking  a  protective  order  or  other  appropriate  protection  of  such        information).    (b)   You acknowledge that all documents, in hard copy or electronic form, received, created        or used by you in connection with employment with the Company are and will remain the        property  of  the  Company. Except  as  otherwise  provided  in  Paragraph 8, you agree  to        return  and/or  cooperate  in  deleting  all  such  documents  (including  all  copies)  promptly        upon  the  termination  of  employment  and  agree  that you will  not,  under  any        circumstances,  without  the  prior  written  consent  of  the  Company,  disclose  those        documents to anyone outside the Company or use those documents for any purpose other        than the advancement of the Company’s interests.   (c)   By signing below, you represent that you have returned to the Company or will return to        the Company following the Separation Date any and all confidential information of the        Company and all other Company property, including but not limited to: laptops, printers,        computers, keys, equipment, identification cards, access card, credit cards, and company        car, if applicable; provided, however, that the Company specifically permits you to retain        your cell phone and iPad.    15.     Indemnification:  Indemnification Agreement between you and the Company, dated as  of  January  1,  2011 (the  “Indemnification  Agreement”), will  survive  the  termination  of  your  employment on the Separation Date and will remain in effect while you serve as a member of the  Board and thereafter in accordance with the terms of the Indemnification Agreement.   16.   Nonadmission of Wrongdoing:  By entering into this Agreement, neither  you nor the  Company admits any wrongdoing or violation of law.   17.   Restrictive Covenants:   You hereby acknowledge and re-affirm the obligations set forth  in Section 8 of your employment offer letter with the Company, dated as of July 29, 2017 (the  “2017  Letter”) and  agree to  comply with  such provisions, which Section 8 is incorporated by  reference herein as if fully set forth herein.  Capitalized terms used in this Agreement that are not  otherwise defined in this Agreement shall have the meaning ascribed to such terms in the 2017  Letter.                                         - 7 -  107624016v8  

 

18.   Intellectual  Property:  You  hereby  acknowledge and agree  to  fully  and  promptly  disclose to the Company, without additional compensation, all ideas, original or creative works,  inventions,  discoveries,  computer  software  or  programs,  trading  strategies,  statistical  and  economic  models,  improvements,  designs,  formulae,  processes,  production  methods  and  technological  innovations,  whether  or  not  patentable  or  copyrightable,  which,  during your  employment with the Company, were made, conceived or created by you, alone or with others,  during or after usual working hours, either on or off the job, and which are related to the business  of  the  Company  or which  relate  in  any  way  to  tasks  assigned  to you by  the  Company  (“Intellectual Property”). You acknowledge that the Company owns all such Intellectual Property  rights as works made for hire to the fullest extent of the law. For the avoidance of doubt, you  hereby  assign  to  the  Company  all  such  Intellectual  Property  rights  in  any  and  all  media  now  known or hereafter developed, along with all existing causes of action, known or unknown.  You  agree,  at  any  time  during  or  after  employment,  to  sign  all  papers  and do  such  other  acts  and  things,  at  the  Company’s  expense,  as  the  Company  deems  necessary  or  desirable  and  may  reasonably require of you to protect the Company’s rights to such Intellectual Property, including  applying  for,  obtaining  and  enforcing  patents  or  copyrights  with  respect  to  such  Intellectual  Property in any and all countries.   19.   Reasonableness of Restrictions; Right to Injunction:  Except as otherwise provided in  Paragraph 8 of  this  Agreement, you expressly  acknowledge  and  agree  that  the  restrictions set  forth in this Agreement or incorporated by reference herein are reasonable in all respects and no  greater than necessary to protect  the Company’s  legitimate business  interests.  You also  agree  that the Company shall be entitled, as a matter of right, to specific performance of the covenants  in  this  Agreement, including preliminary  and permanent  injunctive relief, or other appropriate  judicial remedy, in any court of competent jurisdiction.  Such remedies shall be in addition to all  other remedies available to the Company.  The Parties further agree that if you have breached  any of the terms of Paragraphs 14,  17 and/or 18 of this Agreement, the Company may, at its  option, not pay, discontinue paying, and/or recover, as the case may be, any payments set forth in  Paragraph  2 of  this  Agreement, with  the  exception  of  Paragraph  2(c), as  well  as  damages,  attorneys’ fees, and other costs incurred by the Company in obtaining such relief.   20.   Entire Agreement; Modification and Waiver:  This Agreement (together with Annex 1  and  the  provisions  of the 2017  Letter  incorporated  by  reference herein) constitutes  the  entire  agreement  between  the  Company  and you with  respect  to  the  subject  matter  covered,  and  supersedes  any  previous  agreement  or  understandings  between you in  this  regard.  This  Agreement  does  not  supersede  any  other  agreement(s)  unrelated  to  the  subject  matter  of  this  Agreement.  Both Parties agree that neither has the authority to modify or amend this Agreement  unless the modification or amendment is in writing and signed by you and an authorized officer  of the Company.  The Company’s failure to insist upon strict compliance with any of the terms,  covenants or conditions hereof shall not be deemed a waiver of such term, covenant or condition.       21.   Judicial Modification: If any court of competent jurisdiction determines that any of the  covenants,  or  any  part  of  any  of  them,  is  invalid  or  unenforceable,  the  remainder  of  such  covenants and parts thereof shall not be affected and shall be given full effect, without regard to  the invalid portion.  If any court of competent jurisdiction determines that any of such covenants,  or any part thereof, is invalid or unenforceable because of the geographic or temporal scope of                                        - 8 -  107624016v8  

 

such  provision,  such  court  shall  reduce  such  scope  to the  minimum  extent  necessary  to  make  such covenants valid and enforceable.    22.   Assignment  and  Third  Party  Beneficiaries: You shall  not  assign  any  interest  in  this  Agreement or any part thereof without the express written consent of an authorized officer of the  Company.  The  Company  may  assign  this  Agreement  to,  and  shall  bind,  a  successor  to  its  business without the requirement of consent by you.  Each Affiliate of the Company shall be a  third party beneficiary of your obligations under the provisions of this Agreement and shall have  the right to enforce this Agreement as if a party hereto.     23.   Choice of Law:  This Agreement shall be governed by and construed in accordance with  the laws of the State of New York.  Any dispute arising out of, or relating to this Agreement  shall be subject to the exclusive jurisdiction of the state or federal courts of New York.     24.   Acknowledgement:  By signing this Agreement, you acknowledge that:   (a)   You  have 21  days  within  which  to  review  and  consider  signing  this  Agreement  and        understand that any changes made to this Agreement, whether material or immaterial, do        not restart the 21 day period that you have in which to consider this Agreement;  (b)       If you sign  this  Agreement  prior  to  the  expiration  of  the  21  day  period, you  do so        voluntarily and thereby waive the remainder of the 21 day period;  (c)   By  this  Paragraph  of  the  Agreement, you  have been  advised  to,  and have had  the        opportunity to, consult with an attorney of your choice prior to signing this Agreement;  (d)      You  have read  and  fully  understand  the  terms  of  this  Agreement  and have knowingly,        voluntarily and of your own free will agreed to those terms for the purpose of fully and        finally compromising and settling any and all claims, disputed or otherwise, of any kind        or nature that you ever had or may now have against the Company arising out of your        employment  by,  and/or  separation  of  employment  from,  the  Company,  or  otherwise,        whether known or unknown to you at the time of execution of this Agreement, except as        otherwise provided in Paragraph 8 of this Agreement;  (e)       You have not relied upon any representation, statement or omission made by any of the        Company’s agents, attorneys or representatives with regard to the subject matter, basis or        effect  of  this  Agreement or  otherwise,  other  than  those  expressly  stated  in  this        Agreement;  (f)   You are not waiving any claims that may arise after you execute this Agreement; and  (g)       The consideration provided  to you under  Paragraph  2  of  this  Agreement  exceed  the        amount to which you would have otherwise been entitled as a result of your separation        from the Company’s employ and are in exchange for you signing this Agreement.    25.   Return of Signed Agreement; Counterparts: You should sign and return this  signed  Agreement  to John  Pershing,  Executive  Vice  President,  Chief  Human  Resources  Officer,  933  MacArthur Avenue, Mahwah, NJ 07430, or in the alternative,  your counsel may provide  your  signature to counsel for the Company via email, no earlier than the Transition Date, and no later  than 21 days from the date you received this Agreement.  If you sign or return this Agreement  earlier than the Transition Date, or if you do not return the signed Agreement by the date that is  21 days after the date you received this Agreement, this Agreement shall be deemed revoked,  null,  void  and  of  no  effect,  and  you  shall  have  no  entitlement  to  pay,  benefits  or  any                                        - 9 -  107624016v8  

 

consideration as set forth in this Agreement.  This Agreement may be executed in counterparts,  each of which shall be deemed an original but  all of which shall constitute one and the same  instrument.   26.   Revocation  Period  and Effective  Date:  You understand  and  agree  that you  have 7  calendar days following your execution of this Agreement to revoke it, and that if you elect to  revoke  it,  this  Agreement  shall  be  null  and  void  in  its  entirety.  To  effectively  revoke  this  Agreement, you must  send  written  notice  of your decision  to John  Pershing,  Executive  Vice  President, Chief Human Resources Officer, 933 MacArthur Avenue, Mahwah, NJ 07430, so that  your revocation is received no later than the 8th day after you originally signed this Agreement.   You understand that the money and benefits described in Paragraph 2 of this Agreement will not  be paid until the expiration of this 7 day period following your execution of the supplemental  release attached as Annex 1.   27.   Section 409A:     (a)   A termination of employment shall not be deemed to have occurred for purposes of any        provision of this Agreement providing for the payment of any amounts or benefits that        are  considered  “nonqualified  deferred  compensation”  under  Section 409A of  the  Code        upon  or  following  a  termination  of  employment  unless  such  termination  is  also  a        “separation from service” within the meaning of Section 409A and, for purposes of any        such  provision of  this Agreement,  references  to  a  “termination,”  “termination  of        employment” or like terms shall mean “separation from service.” If you are deemed on        the  date  of  termination  to  be  a  “specified  employee”  within  the  meaning  of  that  term        under  Section 409A(a)(2)(B) of  the  Code,  then  with  regard  to  any  payment  or  the        providing of any benefit made subject to this Section 28(a), to the extent required to be        delayed in compliance with Section 409A(a)(2)(B) of the Code, such payment or benefit        shall be made or provided as specified below after the date which is the earlier of (i) the        expiration of the six-month period measured from the date of the your “separation from        service,” and (ii) the date of the your death (the “Delay Period”). Upon the expiration of        the Delay Period, all payments and benefits delayed pursuant to this provision (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 on the first business day        following  the  end  of  the  Delay  Period,  and  any  remaining  payments  and  benefits  due        under this Agreement shall be paid or provided in accordance with the normal payment        dates specified for them herein.   (b)   All expenses or other reimbursements paid pursuant to this Agreement that are taxable        income to you shall be paid at the time provided by the Company’s applicable policies        and customary practices, but in no event shall be paid later than the end of the calendar        year next following the calendar year in which you incur such expense. With regard to        any provision  herein  that  provides  for reimbursement of costs and expenses  or in-kind        benefits, except as permitted by Section 409A of the Code, (i) the right to reimbursement        or  in-kind  benefits  shall  not  be  subject  to  liquidation  or  exchange  for  another  benefit,        (ii) the  amount  of  expenses  eligible  for  reimbursement,  of  in-kind  benefits,  provided        during any taxable year shall not affect the expenses eligible for reimbursement, or in-       kind benefits to be provided, in any other taxable year, provided that the foregoing clause                                       - 10 -  107624016v8  

 

      (ii) shall  not  be  violated  with  regard  to  expenses  reimbursed  under  any  arrangement        covered by Section 105(b) of the Code solely because such expenses are subject to a limit        related to the period the arrangement is in effect and (iii) such payments shall be made on        or  before  the  last  day  of your taxable  year  following  the  taxable  year  in  which  the        expense occurred.   28.   Supplemental Release:  You agree that your entitlement to the payments and benefits set  forth  in  Paragraph  2  of  this  Agreement  is expressly  conditioned  on  his  execution  of  a  supplemental release in the form annexed hereto as Annex 1 (the “Supplemental Release”) no  earlier than the Separation Date and no later than 21 days after the Separation Date.  If you do  not execute the Supplemental Release, you will not be entitled to any of the payments or benefits  set forth in Paragraph 2.                                     Sincerely,                                                                                                                                           /s/ Kate Buggeln                                      Kate Buggeln                                      Lead Independent Director  Read, Accepted and Agreed:      /s/ David Jaffe                                 5/1/19  David Jaffe                                     Date                                        - 11 -  107624016v8garymuto2019may1

                                                                                                                                                                                     May 1, 2019    VIA EMAIL   Gary Muto      Dear Gary:      On behalf of the Board of Directors (the “Board”) of Ascena Retail Group (“Ascena” or the “Company”) I’m   excited to offer you a promotion to Chief Executive Officer of the Company!    The following are the terms and conditions of our job offer to you and replace any and all previous offers   or discussions concerning your employment, effective May 1, 2019 (the “Effective Date”).    Job Title:             Chief Executive Officer of the Company.                            On the Effective Date, you will be appointed to the Board.  While you are                          employed by the Company, the Company will nominate you for re-election                          to  the  Board  each  time  that  your  term  on  the  Board  would  otherwise                          expire.  You agree to resign from the Board upon the termination of your                          employment for any reason.   Duties and Responsibilities:  As Chief Executive Officer, you will perform the customary duties and have                          the customary responsibilities and authorities  of such position, as well as                          such other duties commensurate with such position  as may be reasonably                          assigned to you from time to time by the Board.                           You agree to faithfully serve Ascena and devote substantially all of your                          working  time,  attention  and  energies  to  the  business  of  Ascena,  its                          subsidiaries and affiliated entities.  You agree not to engage in any other                          business or employment without the written consent of the Board except                          as  otherwise  specifically  provided  herein.  You may  perform                          uncompensated  services  in  connection  with  either  the  management  of                          personal investments or with charitable or civic organizations, provided                          that such activities do not interfere with your duties and responsibilities.    Reporting To:          The Board     Location:              New York, NY     Effective Date:        May 1, 2019                                        Page 1  107451833v8  

 

                                                                                                                                                                   Annual Pay Rate (Base Salary): $1,000,000                           You may be considered for an annual performance evaluation to increase                          (but  not  decrease) base salary as  part  of  the  standard  performance                          evaluation  cycle. Any  corresponding  pay  adjustments  will  be  based  on                          your  performance,  business  results,  economic  and  competitive  factors,                          and approval from the Board in its sole discretion.   Incentive Compensation:  Cash  Bonus:  From  and  after  the Effective  Date,  you  will  continue  to                           participate in the Incentive Compensation (“IC”) program at a target level                           of 150% of your annual base salary. Your initial annual target level (100%                           performance)  is  $1,500,000,  provided,  that  such  target  level  may  be                           reviewed for increase, but not decrease other than in connection with an                           across-the-board reduction prior to a Change in Control (as defined below)                           that affects senior executives of the Company.  Maximum annual payout                           is double your target level (i.e., 200% of target), or $3,000,000. Payments                           shall  be  made  in  the  same  form  and  timing  as  made  to  other  senior                           executives  of  Ascena.   The  IC  program  is  governed  by  the  terms  and                           conditions of the Ascena 2016 Omnibus Incentive Plan, as amended (or                           any successor plan) (the “2016 Plan”).                            Transformation Bonus: You  will  continue  to  participate  in  the                           Transformation  Bonus  Program  at  the  same  level  in  effect  as  of  the                           Effective Date.  Your participation and awards are subject to the terms and                           conditions  of  the  Transformation  Bonus  Program  plan and  Award                           Agreements thereunder.     Long Term Incentives:    Simultaneously with the execution of this Letter, the Compensation and                           Stock Incentive Committee of the Board (the “Compensation Committee”)                           has approved and shall grant on the Effective Date a one-time long-term                           incentive  award  promotion  grant  of  performance  based  equity                           (approximately 60% will be granted as Restricted Stock Units (“RSUs”) and                           approximately  40%  will  be  granted  as  Non-Qualified  Stock  Options                           (“NQSOs”))  equal  to  a  value  of  $3,850,000  on  the  Effective  Date  (the                           “Promotion  Grant”).   The  number  of  RSUs  granted  pursuant  to  the                           Promotion  Grant  will  be  determined  based  on  the  closing  price  of  the                           Company’s common stock on the date of grant and the number of NQSOs                           granted pursuant to the Promotion Grant will be determined using the                           Black-Scholes value of the NQSOs (as determined by the Company) as of                           the date of grant.  The Promotion Grant will vest as follows, subject to your                           continued employment from the grant date through the applicable vesting                           date: 25% of each of the RSUs and NQSOs 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 each                           of the RSUs and NQSOs 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                                        Page 2  107451833v8  

 

                                                                                                                                                                                           grant date (the “$5 Hurdle”); and the remaining 50% of each of the RSUs                           and NQSOs 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 RSUs and 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 RSUs and NQSOs that did not                           vest as of the third anniversary will be forfeited for no consideration.  The                           Promotion Grant shall be subject to the terms and conditions of the 2016                           Plan, applicable  Award  Agreements thereunder and  Plan                           Description/Prospectus and is conditioned on your timely execution of the                           Restrictive Covenant Agreement (as defined below).                              Subject to your continued employment, 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 2019).                             The long term incentive awards granted to you in 2017, consisting of time-                          vested  awards  (the (“2017  Time-Vested  Awards”),  performance-vested                           awards  (“2017  Performance-Vested  Awards”)  and  an  additional  time-                          vested award (“Additional RSU”) will remain outstanding in accordance                           with the terms thereof.                              All  grants  are  subject  to  the  terms  and  conditions  of  the  2016  Plan,                           applicable Award Agreements and Plan Description/ Prospectus. and are                           conditioned  upon  your timely execution  of,  and  compliance  with, the                           Company’s restrictive covenant agreement containing a non-competition,                           non-solicitation and other provisions (“Restrictive Covenant Agreement”),                           which shall be substantially in the form provided to you previously, except                           that (i) your post-termination Non-Compete Period shall be for one year                           following your termination for any reason, (ii) your post-termination Non-                          Solicit  Period  shall  be  for two years  following  your  termination for  any                           reason,  and (iii) such restrictions shall apply without any requirement of                           the Company to make additional payments to you in the event of your                           termination by the Company without “Cause” (as defined below) or your                           termination for “Good Reason” (as defined below) and if you are receiving                           severance payments and benefits as provided under this letter.                             In the event of your termination by the Company without Cause or your                           termination for Good Reason prior to a “Change in Control” (as defined in                           the Company’s Executive Severance Plan (“ESP”) as of June 1, 2017) (a                                        Page 3  107451833v8  

 

                                                                                                                                                                                           “Qualifying Termination”), the Promotion Grant 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 RSUs and NQSOs 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 RSUs                                and NQSOs 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 Promotion Grant until                                the  termination  date  and  the  denominator  of  which  is 1,095.                                 NQSOs  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 Promotion Grant, then subject to your                           (or  your  estate’s  or  legal  representative’s) satisfaction  of  the  Release                           Condition, the portion of the RSUs and NQSOs for which the applicable                           Hurdle(s)  were actually achieved  prior  to  the  date  of  termination  will                           become  immediately  vested.  NQSOs  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 as of June 1, 2017) and notwithstanding Section 2.2(c) of the                           ESP as of June 1, 2017, the Promotion Grant will be treated as follows:                                In the event of your Post-Change in Control Termination (as defined                                in the ESP as of June 1, 2017), 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  RSUs  and                                NQSOs 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  RSUs  and  NQSOs  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                                NQSOs and RSUs that would vest upon actual achievement of the                                $5 Hurdle (i.e., an additional 12.5% of the RSUs and NQSOs granted                                        Page 4  107451833v8  

 

                                                                                                                                                                                                pursuant to the Promotion Grant).  If the Promotion Grant remains                                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 RSUs and NQSOs granted pursuant to                                the Promotion Grant 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 as of June 1, 2017), 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 as of June 1, 2017, will include payment in                                respect  of  a  portion  of  the  RSUs  and  NQSOs  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 as of                                June 1, 2017, will include payment in respect of (i) the portion of                                the RSUs and NQSOs 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 NQSOs and RSUs that would                                vest upon actual achievement of the $5 Hurdle (i.e., an additional                                12.5% of the RSUs and NQSOs granted pursuant to the Promotion                                Grant).  You will receive no payment under Section 2.2(c) of the ESP                                as of June 1, 2017, for any portion of the RSUs and NQSOs granted                                pursuant  to  the Promotion  Grant that  do  not  vest based on  this                                paragraph  will be  forfeited  for  no  consideration  on  the date  the                                Change in Control is consummated.                            In  the  event  of  your Qualifying  Termination, the  long  term  incentive                           awards granted to you in 2017 will be treated as follows, subject to your                           satisfaction  of  the  Release  Condition;  provided,  that,  more  favorable                           treatment  may  be  provided  for a termination  of  employment without                           Cause or for Good Reason, in each case, in anticipation of a Change in                           Control:                                To  the  extent  that  your 2017  Time-Vested  Awards and/or  the                                Additional RSU are  outstanding  and  unvested  at  the  time  of  any                                such Qualifying Termination, the next tranche of either such award                                scheduled  to vest  following  any  such  Qualifying  Termination  will                                vest on the date of the Qualifying Termination;                                        Page 5  107451833v8  

 

                                                                                                                                                                                               To  the  extent  that  your  2017  Performance-Vested Awards  are                                outstanding  and  unvested  at  the  time  of  any  such  Qualifying                                Termination, a pro rata portion of such awards will vest subject to                                the actual achievement of  the applicable  performance  goals  and                                following  the  certification  of  the  goals  by  the  Compensation                                Committee  after  the  end  of  the  applicable  performance  period.                                 Such pro rata portion will be calculated by multiplying the amount                                of  the award  achieved  upon  the  satisfaction  of the  applicable                                performance  goals  by  a  fraction,  the  numerator of  which  is  the                                number of days from the grant date until the termination date and                                the denominator of which is the total days within the applicable                                performance period.    All  pay  and  benefits  otherwise  remain  subject  to  the  terms  and  conditions  of  the  applicable  plans,   programs and policies.    At Ascena, an employment at-will relationship prevails and the employment relationship can be terminated   with or without Cause and with or without notice, at any time, by either the employee or the employer.   You  shall  participate  in  the  ESP, subject  to  its  terms  and  conditions,  provided,  that  any  dispute  in   connection  with  the  ESP  shall  be  determined  by  de  novo  review  notwithstanding  any  references to   Committee authority under the ESP.  Your participation in the ESP shall be modified as follows:     (i)  you shall be eligible for severance in the event of your termination by the Company without Cause        (as defined in Section 1.5(b) of the ESP as of June 1, 2017, but modified as described under clause        (ii) below) or termination by you for Good Reason (as defined in Section 1.22 of the ESP as of June        1,  2017  but  modified  as  described  under  clause  (iii)  below),  which  definition  shall  apply  to  you        regardless of the occurrence of a Change in Control (as defined in the ESP as of June 1, 2017);     (ii) for purposes of your definition of “Cause,” (A) Section 1.5(a) shall be deleted and replaced with the        following: “(a) conviction of a crime (including conviction or a nolo contendere plea) involving the        commission by the Participant of a felony or of a criminal act involving, in the good faith judgment        of the Board, fraud, dishonesty, or moral turpitude but excluding any conviction which results solely        from the Participant’s title or position with Ascena and is not based on the Participant’s personal        conduct;” and (B) Section 1.5(b) shall be deleted and replaced with the following: “(b) intentional        and willful failure to satisfactorily perform employment duties reasonably requested by the Board        after thirty (30) days’ written notice of such failure to perform, specifying that the failure constitutes        cause (other than as a result of vacation, sickness, illness or injury);”.    (iii) the definition of Good Reason shall also include any material breach of this letter by the Company        or failure by Ascena to pay your compensation and benefits in accordance with this letter, in each        case, subject to the notice and cure provisions in the ESP, and for purposes of your definition of        “Good Reason,” Section 1.22(b) of the ESP shall be deleted and replaced with the following: “(b)(I)        prior to a Change in Control, any reduction in the Participant’s base salary, other than a reduction        that is uniformly applied to similarly situated employees of not more than 10%; and (II) on or after        a Change in Control, any reduction in the Participant’s base salary and/or benefits, other than a        reduction that is uniformly applied to similarly situated employees of not more than 10%;”                                         Page 6  107451833v8  

 

                                                                                                                                                                   (iv) your cash severance payment level under Section 2.2(a)(i) of the ESP (relating to a non-change in        control termination) shall be 24 months of base salary and your cash severance level under Section        2.2(a)(ii) of the ESP (relating to a change in control related termination) shall be 24 months of base        salary and bonus (as defined in the ESP);      (v)  your Continuation Period (as defined in the ESP) shall not exceed 18 months;    (vi) no mitigation provisions in the ESP shall be applicable to you, however, provisions related to set-off        remain applicable to you; and    (vii) if such ESP is adversely amended in any material manner or  terminated, you shall nonetheless        remain eligible for severance at the levels described herein, but you shall continue to be subject to        the terms and conditions of the ESP as if it continued to apply to you without regard to any such        amendment or termination.     If your employment is terminated due to your death or Disability, then in addition to any vested and   accrued benefits you are entitled to receive pursuant to the Company’s benefit plans and programs, and   subject to your (or your estate’s or legal representative’s) satisfaction of the Release Condition, you (or   your estate or legal representative) will be entitled to receive a pro rata portion (based on the number of   days  you  were  employed  during  the  applicable  performance  period) of  your  seasonal IC for the   performance  period  in which  your  termination occurs, calculated  based  on  actual  results  for  such   performance period and paid at the same time seasonal IC bonuses are otherwise paid.     Notwithstanding  anything  to  the  contrary,  in  no  event  shall  there  be  any  duplication  of  severance   payments or benefits under any plan, program or policy, under this letter or under the Restrictive Covenant   Agreement.      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 sets forth the entire agreement and understanding between you and the   Company relating to the subject matter hereof and supersedes any and all prior agreements, arrangements   and understandings, written and oral, relating to the subject matter hereof, including the letter between   you and the Company dated June 1, 2017, but excluding your Award Agreements under the 2016 Plan and   your Award Agreements under the Transformation Bonus Program.     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, known 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 outstanding equity awards or vested, accrued benefits   you  may  have  under  the  terms  and  conditions  of  any  applicable  plan  or  agreement.   You  hereby                                        Page 7  107451833v8  

 

                                                                                                                                                                   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 position.      Sincerely,                               I accept your offer as specified above.      /s/ Kate Buggeln                         /s/ Gary Muto        Kate Buggeln                             Gary Muto   Lead Independent Director      4/29/19                                  5/1/19               Date                                     Date                                         Page 8  107451833v8

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