Document:

exv10w1

 

Exhibit 10.1

November 28, 2007

Joseph A. Jeffries

			
	RE:	 	Employment with A.C. Moore Arts & Crafts, Inc.

Dear Joe:

We are pleased to offer you employment with A.C. Moore Arts & Crafts, Inc. (the “Company”) as set
forth in this letter. This offer is subject to the completion of the internal review and hiring
process consistent with the Company’s practices. The terms of your employment will be as follows.

     1. Start date/position. Your employment with the Company will begin on or about November 28,
2007 (the “Effective Date”). Your title will be Executive Vice President of Operations. You will
report directly to the Chief Executive Officer.

     2. Base salary. Your annual base salary will be $280,000, payable in regular installments in
accordance with the Company’s general payroll practices. Your base salary will be subject to
review annually by the Compensation Committee. Your first performance and salary review will be
one-year from the Effective Date and thereafter your performance and base salary will be reviewed
annually on a schedule consistent with the Company’s practice for officers (such schedule currently
contemplated to be May of each year).

     3. Sign-on bonus. On the Effective Date, you will receive a cash lump sum sign-on bonus in
the amount of $120,000 (the “Sign-on Bonus”). For each month (or any portion of such month) that
you remain employed by the Company, you will earn one-twenty-fourth (1/24th) of the
Sign-on Bonus. If you resign your employment with the Company for any reason or if you are
terminated by the Company for cause (as defined below) within twenty-four (24) months of the
Effective Date, you will repay the unearned portion of the Sign-on Bonus to the Company. Cause
includes but is not limited to illegal conduct or gross misconduct in violation of the Company’s
Code of Business Ethics and Conflict of Interest Policy.

     4. Guaranteed bonus. In 2008 and no later than March 31, 2008, you will receive a guaranteed
cash lump sum bonus of $17,500.

     5. Annual bonus plan. During each calendar year beginning in 2008 in which you continue to be
employed by the Company, you will be entitled to participate in the Company’s annual incentive
bonus plan (the “Bonus Plan”) as administered and determined by the Compensation Committee of the
Board of Directors. You will not be eligible to participate in the Bonus Plan for performance in
2007.

 

 

     6. Long-term incentive compensation. You will be eligible to participate in the
Company’s long-term incentive plan as administered and determined by the Compensation Committee of
the Board of Directors. On the Effective Date, subject to the approval of the Compensation
Committee, you will be granted 5,000 shares of performance accelerated restricted stock (“PARS”)
and 5,000 stock appreciation rights (“SARs”) pursuant to the Company’s 2007 Stock Incentive Plan
(the “2007 Plan”). Pursuant to the 2007 Plan, the grant of the PARS and SARs will be evidenced by,
respectively, a Restricted Stock Agreement and a Stock Appreciation Rights Agreement entered into
between you and the Company. Equity granted to you under the 2007 Plan will vest upon a change in
control in accordance with the terms of the 2007 Plan.

     7. Benefits. You will be entitled to receive benefits generally provided to officers of the
Company consistent with the Company’s practices, including without limitation, the following:

	 	•	 	Medical, dental and prescription benefits.
	 
	 	•	 	Life insurance equal to 1.5 times your annual base salary, with a maximum amount of
$450,000.
	 
	 	•	 	Optional voluntary life insurance.
	 
	 	•	 	Long-term disability benefits.
	 
	 	•	 	Participation in the Company’s 401(k) plan.
	 
	 	•	 	New Jersey short-term disability benefits.
	 
	 	•	 	Vacation (three (3) weeks beginning in 2008).
	 
	 	•	 	Cell phone/blackberry.
	 
	 	•	 	Reimbursement for business expenses/use of a corporate credit card.

     8. Relocation benefits. The Company will provide you with the following relocation benefits:
(a) payment for temporary housing for the one hundred twenty (120) day period beginning on the
Effective Date (the “Relocation Period”); (b) weekly meal allowance reimbursement of up to $150.00
during the Relocation Period; (c) payment for bi-weekly round trip travel for either you or your
spouse for the purpose of relocation investigation and house hunting during the Relocation Period;
(d) arrangement and payment for the services of a moving firm in accordance with the Company’s
relocation policy for a relocation that takes place within 12 months of your hire date; (e) closing
costs in an amount not to exceed $3,000 for the purchase of a new house/residence within 12 months
of your hire date; and (f) reimbursement of the commission costs on the sale of your house in
Florida (the foregoing (a), (b), (c), (d), (e) and (f) are collectively referred to as the
"Relocation Benefits”). For each month (or any portion of such month) that you remain employed by
the Company, you will earn one-twenty-fourth (1/24th) of the Relocation Benefits. If
your employment is terminated by you for any reason or by the Company for cause (as defined above
in paragraph 3) within twenty-four (24) months of the Effective Date, you will repay the unearned
portion of the Relocation Benefits to the Company. The Relocation Period may be extended for an
additional sixty (60) days in the event your house is not sold during the initial 120-day period.

     9.   (a) In consideration of the compensation to be paid to you as set forth in this letter, the
sufficiency of which you hereby acknowledge, you agree that for a period of twelve (12) months
after termination of your employment (the “Non-Compete Period”) you

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will not directly or indirectly own any interest in, manage, control, participate in, consult
with, render services for, or in any manner engage in any business competing with the businesses of
the Company or its subsidiaries (such businesses being the retail sale of arts and crafts and
related products), as such businesses exist or are in process on the date of the termination of
Participant’s employment, within a fifty (50) mile radius of any geographic location in which the
Company or its Affiliates engage in such businesses or actively plan to engage in such businesses.
Nothing herein shall prohibit you from being a passive owner of not more than 2% of the outstanding
stock of any class of a corporation which is publicly traded and which competes with the businesses
of Company and its subsidiaries, so long as you have no direct or indirect active participation in
the business of such corporation.

          (b) During the Non-Compete Period, you shall not directly or indirectly through another
person or entity (i) induce or attempt to induce any employee of the Company or any subsidiary to
leave the employ of the Company or such subsidiary, or in any way interfere with the relationship
between the Company or any subsidiary and any employee thereof, (ii) hire an employee of the
Company or any subsidiary, or (iii) induce or attempt to induce any customer, supplier, licensee,
licensor, franchisee or other business relation of the Company or any subsidiary to cease doing
business with the Company or such subsidiary, or in any way interfere with the relationship between
any such customer, supplier, licensee, licensor, franchisee, or business relation and the Company
or any subsidiary (including, without limitation, making any negative statements or communications
about the Company or its subsidiaries).

          (c) The provisions of this paragraph 9 will be enforced to the fullest extent permitted by the
law in the state in which you reside or is employed at the time of the enforcement of the
provision. If, at the time of enforcement of this paragraph 9, a court shall hold that the
duration, scope or area restrictions stated herein are unreasonable under circumstances then
existing, the parties agree that the maximum duration, scope or area reasonable under such
circumstances shall be substituted for the stated duration, scope or area and that the court shall
be allowed to revise the restrictions contained herein to cover the maximum period, scope and area
permitted by law. You agree that the restrictions contained in this paragraph 8 are reasonable.
In the event of the breach or a threatened breach by you of any of the provisions of this paragraph
9, the Company, in addition and supplementary to other rights and remedies existing in its favor,
may apply to any court of law or equity of competent jurisdiction for specific performance and/or
injunctive or other relief in order to enforce or prevent any violations of the provisions hereof
(without posting a bond or other security). In addition, in the event of an alleged breach or
violation by you of this paragraph 8, the Non-Compete Period shall be tolled until such breach or
violation has been duly cured.

     10. If your employment is terminated at any time by the Company without cause (as defined
above in paragraph 3), you will receive (i) severance payments in the amount of six (6) months’
compensation at your then current rate, less any required withholdings or authorized deductions, in
equal monthly installments, plus (ii) health insurance benefits pursuant to the Company’s programs
as in effect from time to time, to the extent you participated immediately prior to the date of
such termination (“Insurance Benefits”). Should you remain unemployed after six (6) months you
will receive an additional month of severance and Insurance Benefits for each month you remain
unemployed, up to a maximum of six (6) additional months of severance at your then current rate,
less any required withholdings or authorized deductions in equal monthly installments, and
Insurance Benefits

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for a maximum of six (6) additional months. At no time will the total amount of severance to
be paid to you equal more than twelve (12) months. Likewise, Insurance Benefits will be provided
to you for no more than twelve (12) months following your termination date. No payment of any sum
pursuant to this paragraph 10 will be made unless and until you shall have executed and delivered
to the Company a release of any and all claims against the Company and its subsidiaries (and their
respective present and former officers, directors, employees and agents), all in form and substance
as provided by counsel to the Company (the “Release”) and any waiting period or revocation period
provided by law for the effectiveness of the Release shall have expired without you having revoked
the Release.

     11. You may terminate your employment with the Company at any time and for any reason
whatsoever. Likewise, the Company may terminate your employment at any time and for any reason
whatsoever, with or without cause or advance notice. This at-will employment relationship cannot
be changed except in writing signed by an officer of the Company so authorized.

     12. By signing below, you agree to keep the terms of this offer strictly confidential. You may
only disclose the information in this letter to your immediate family, attorney(s) and/or tax
advisor(s) unless ordered to do so by a duly authorized subpoena issued by an appropriate agency or
court of law.

     13. This offer letter replaces and supersedes any agreements or offers previously provided to
you by the Company. This letter may be executed in separate counterparts, each of which is deemed
to be an original and all of which taken together constitute one and the same letter.

[Signature page follows on next page.]

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     Please indicate your acceptance of this offer by signing this letter where indicated below.

	 	 	 	 	 
	 

	 	Sincerely,
	 	 
	 
	 	 	 	 
	 

	 	A.C. MOORE ARTS & CRAFTS, INC.	 	 
	 
	 	 	 	 
	 

	 	By:	 	 
	 
	 	 	 	 
	 

	 	/s/ Amy Rhoades	 	 
	 

	 	 	 	 
	 

	 	Amy Rhoades	 	 
	 

	 	Vice President and General Counsel	 	 

INTENDING TO BE LEGALLY BOUND,

AGREED TO AND ACCEPTED:

	 	 	 
	/s/ Joseph A. Jeffries
 

	 	  
	Joseph A. Jeffries
	 	 

[Signature Page to Letter to Joseph A. Jeffries]

5<PAGE>

                    SEPARATION AGREEMENT AND GENERAL RELEASE

         This Separation Agreement and General Release ("Agreement") is between
Beneficial Mutual Bancorp, Inc., a federally chartered corporation, and
Beneficial Mutual Savings Bank, a Pennsylvania chartered savings bank
("Employer") and Paul R. Driscoll ("Employee").

         WHEREAS, Employee's employment with Employer will terminate effective
December 31, 2007 ("Termination Date"); and Employee's last day of work will be
October 12, 2007 ("Last Day Worked"); and

         WHEREAS, Employer and Employee desire to resolve any and all matters,
claims, controversies, disputes, or grievances relating to Employee's employment
or separation from employment with Employer;

         NOW, THEREFORE, in consideration of the mutual promises and commitments
made herein, and intending to be legally bound hereby, Employer and Employee
agree as follows:

         1. Employee's employment with Employer will terminate effective as of
the Termination Date. Employer will pay Employee his regular base salary, on
Employer's regular payroll schedule, through the Termination Date. Employee
acknowledges and agrees he has received all compensation and other benefits to
which he is entitled through the Last Day Worked from Employer and any entity
affiliated with Employer, including without limitation, all earned but unused
vacation days through the Termination Date.

         2. In consideration of Employee's agreements herein,

            (a) Employee will receive as Separation Pay a gross pay amount of
$718,688.00, as a lump sum, representing three years of pay at Employee's
regular annual base salary, less normal withholdings ("the Separation Pay").
This payment will not be made unless Employee returns this signed Agreement and
will not be made until the expiration of the seven day revocation period set
forth in paragraph 16 below, provided this revocation period has expired without
Employee revoking this Agreement. If these conditions have been met, it is
Employer's intention to make this payment on or before December 31, 2007, but in
no event will the payment be made later than March 15, 2008. Employee
understands that he may not execute this Agreement prior to the Last Day Worked.
Employee acknowledges that the Separation Pay is not compensation for past
services rendered. The Separation Pay paid pursuant to this Agreement will not
be counted as compensation for purposes of determining benefits under any other
benefit plan, pension plan or similar arrangement. Employee agrees that he is
solely responsible for any taxes to be paid on the Separation Pay. Employer
shall not make any payment of Separation Pay to the extent such payment would
result in an "excess parachute payment" under Internal Revenue Code Section
280G.

            (b) For the three years subsequent to the Termination Date, Employer
will pay the cost of Employee's group health coverage under Employer's group
health insurance program under the same terms as that coverage is provided to
other employees of Employer, provided that the Employer's payment toward the

<PAGE>

cost of such benefits will cease once the Employee elects coverage under any
other group health plan, including Employer's Retiree Health Plan. At the end of
the three-year period, Employee will have the opportunity to continue his group
health insurance as provided by COBRA.

         3. Employee specifically acknowledges and agrees that he is not a
participant in nor is he entitled to any benefits pursuant to the Severance Pay
Plan for Eligible Employees of Beneficial Mutual Savings Bank.

         4. By entering into this Agreement, Employer does not admit that it is
liable to Employee for anything on account of any reason whatsoever.

         5. Employee agrees to keep this Agreement and its terms and conditions
confidential, and agrees not to disclose or discuss the fact of or the contents,
terms, or conditions of this Agreement except to his respective attorneys,
accountants and members of his immediate family.

         6. Employee agrees to cooperate with and to respond promptly to
Employer's reasonable requests for information relating to Employer's job duties
with Employee.

         7. Employee agrees to refrain from disclosing to anyone any proprietary
or confidential information of Employer, including without limitation that
confidential information defined in any policy or agreement signed by him about
or relating to Employer, its past and present parents, subsidiaries, divisions
and related and affiliated organizations, and their respective past and present
employees, clients, visitors, and business operations. Employee acknowledges and
agrees that his obligations under the terms and conditions of any such policies
or agreements are and will remain in full force and effect after the termination
of his employment.

         8. Employee shall return any and all property of Employer, including
but not limited to any of Employer's electronic equipment, letters, memoranda,
records, reports, notes, notebooks, books of account, data, drawings, prints,
plans, specifications, formulae and correspondence or copies of the same
(including any electronically stored copies), information or property in his
possession or control about or relating to Employer, its past and present
parents, subsidiaries, divisions and related and affiliated organizations, and
their respective past and present employees, clients, visitors, and business
operations.

         9. Employee hereby releases and forever discharges Employer and its
past and present parents, subsidiaries, divisions and related and affiliated
organizations, and their respective past and present respective officers,
shareholders, directors, attorneys, agents, servants and employees and their
successors, heirs and assigns from all causes of action, claims, debts,
accounts, controversies, sums of money, contracts, promises, agreements,
judgments, demands, and liabilities of any kind or nature whatsoever in law, in
equity, or otherwise, whether known or unknown, whether asserted or unasserted,
including without limitation any and all claims for employment discrimination,
wrongful discharge, compensation, benefits, bonuses, incentives, expenses,
options, wages, severance pay, vacation pay, fringe benefits, or other monies or
accountings, including punitive damages, liquidated damages, exemplary damages,

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<PAGE>

or compensatory damages, physical, mental, or emotional distress, pain and
suffering, back pay, front pay, costs, and attorneys' fees, and any other legal
or equitable relief, and further including without limitation any and all rights
and claims arising under the Age Discrimination in Employment Act, 29 U.S.C. ss.
621 ET SEQ., as amended, or claims relating to Employee's employment or
separation from employment with Employer or any entity affiliated with Employer
or any other cause, reason, matter, or thing whatsoever arising up until the
date of Employee's execution of this Agreement, except that this release does
not extend to claims for worker's compensation benefits, amounts owed under this
Agreement, claims for vested employee benefits under the Employee Retirement
Income Security Act, or other non-waivable claims.

         10. Employer and Employee agree that, to the full extent permissible by
law, the terms of this Agreement shall be interpreted under and consistent with
the laws of the Commonwealth of Pennsylvania and federal law and that to the
full extent provided by law the federal and/or state courts within the
Commonwealth of Pennsylvania shall have jurisdiction over any claims arising out
of this Agreement.

         11. Employee agrees, subject to any obligations he may have under
applicable law, that he will not make or cause to be made any statements that
disparage, are inimical to, or damage the reputation of the Employer or any of
its affiliates, subsidiaries, agents, officers, directors or employees.

         12. If any court of competent jurisdiction shall hold invalid any part
of this Agreement, then the court making such determination shall have the right
to modify this Agreement and in its modified form this Agreement shall be
enforceable to the fullest extent permitted by law. If any provision or part of
a provision of this Agreement is held to be invalid or unenforceable, such
provision shall be severed from this Agreement and the remaining provisions
shall remain in full force and effect. This paragraph shall be interpreted to
give the fullest possible effect to Employee's release of claims.

         13. This document states the whole agreement between the parties as to
its terms and supersedes all prior or contemporaneous agreements, offers,
representations, negotiations or discussions with respect to such subject
matters, including without limitation any prior severance, separation or similar
arrangements. Any changes to this Agreement must be in writing and initialed or
signed by both parties. Employee understands and acknowledges that in deciding
whether to sign this Agreement, he is not relying on any promises, statements or
representations, oral or written, other than those that are set forth expressly
in this Agreement.

         14. Upon the death of the Employee, any Separation Pay due but not yet
paid will be paid, in accordance with all other provisions of this Agreement, to
Employee's estate. Employee understands and acknowledges that he may not
otherwise assign his right to any payment under this Agreement.

         15. Employee agrees that he will not file, or permit to be filed in his
name or on his behalf, any lawsuit in court against any of the persons or
entities released in this Agreement, based upon any act or event which occurred
on or before his execution of this Agreement. Employee further agrees that,

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<PAGE>

although he has the right to file a charge with the Equal Employment Opportunity
Commission, should he file such a charge, or should any charge, lawsuit,
complaint or other claim be filed in his name or on his behalf with the Equal
Employment Opportunity Commission or with any other administrative agency or
organization, or in any other forum, against any of the persons or entities
released herein, based upon any act or event which occurred on or before the
effective date of this Agreement, he will not seek or accept any personal relief
based upon such charge, lawsuit, complaint or other claim, including but not
limited to an award of monetary damages or reinstatement to his employment with
Employer.

         16. Employee hereby represents and acknowledges to Employer that (a)
Employer hereby has advised Employee in writing to consult with an attorney of
his choosing and he has had the opportunity to so before signing this Agreement;
(b) Employee has had the right to consider whether to sign this Agreement for up
to 45 days after his receipt of it, although he need not take the entire 45-day
period to consider whether to sign it; (c) Employee may not sign this Agreement
until his Last Day Worked has elapsed; (d) Employee has seven (7) days after
signing this Agreement in which to revoke it by delivering a written notice of
such revocation to Beneficial Mutual Savings Bank, addressed to: Cecile Colonna,
Vice President - Assistant Human Resources Department Manager, 530 Walnut
Street, Philadelphia, PA 19106; phone - 215-864-6094; fax 215-864-1759; e-mail -
ccolonna@thebeneficial.com; (e) Employee has been informed as to the group of
individuals covered by the employment termination program, any eligibility
factors and applicable time limits for the employment termination program, and
the job titles and ages of individuals in Employee's job classification or
organizational unit who are eligible for or selected to receive benefits under
the employment termination program, and the job titles and ages of individuals
who are not eligible or not selected; and (f) the consideration provided
Employee under this Agreement is sufficient to support the releases provided by
him under this Agreement and is greater than Employee would be entitled to
receive if he did not sign this Agreement. Employee understands that Employer
regards the representations made by him as material and that Employer is relying
on these representations in entering into this Agreement. Employee acknowledges
and agrees that the Employer's obligation to make payments or provide other
benefits under this Agreement will not commence until the period for revocation
has passed and this Agreement becomes irrevocable by Employee.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

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<PAGE>

         Employee declares that he has completely read, fully understands and
voluntarily accepts the terms of this Agreement after complete consideration of
all facts and legal claims.

         IN WITNESS WHEREOF, the parties have entered into this Agreement as of
the last date indicated below.

/s/ Paul R. Driscoll                            Dated:  11/20/2007
------------------------------------
Employee

/s/ Michele Schonthal                           Dated:  11/20/2007
------------------------------------
WITNESS

Employer

By: /s/ Cecile Colonna                          Dated:  11/20/2007
    --------------------------------

Title: VP
      ------------------------------

/s/ Michele Schonthal                           Dated:  11/20/2007
------------------------------------
WITNESS

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