Document:

Exhibit 10.2

 

SEPARATION, TRANSITION AND RELEASE AGREEMENT

 

This Separation, Transition and Release Agreement (the “Agreement”) is made this April 1, 2019, by and between GMS Inc., a Delaware corporation (the “Company”) and G. Michael Callahan, Jr. (the “Executive”).

 

A.                                    Separation from Employment.  The Company and the Executive agree that (i) the Executive hereby resigns from his position of President of the Company effective May 1, 2019, (ii) the Executive hereby resigns as Chief Executive Officer of the Company effective as of August 2, 2019 (the “Separation Date”), and his employment with the Company shall terminate on the Separation Date.  From May 1, 2019 until the Separation Date, the Executive shall continue his employment with the Company as Chief Executive Officer of the Company, subject to the termination provisions of his Employment Agreement (as defined below) and will continue to receive his current compensation and benefits contemplated by the Employment Agreement, dated as of August 28, 2015, as amended (the “Employment Agreement”), by and between the Executive and Gypsum Management and Supply, Inc., a Georgia corporation and a wholly owned subsidiary of the Company through and including the Separation Date.

 

B.                                    Compensation through Separation Date.  Following the Separation Date, the Executive will be paid for all outstanding wages earned since his last paycheck through and including the Separation Date, less customary and applicable payroll deductions.  The Executive confirms and agrees that, through the date he executes this Agreement, he has received all wages, reimbursements, payments, or other benefits to which he is entitled as a result of his employment with the Company, other than for outstanding wages earned since his last paycheck and expenses incurred in the ordinary course.

 

C.                                    Separation Obligation of the Company.  In consideration of Executive’s promises contained in this Agreement, including without limitation, the Release in Section D below and the Supplemental Release of Claims attached hereto as Exhibit A the Company agrees as follows:

 

1.                                      Severance Amount.  The Company will pay to Executive the following amounts (collectively, the “Severance Amount”):

 

i.                                          A gross total amount of $1,158,768, less customary and applicable payroll deductions (such amount, the “Severance Payment”).  The Severance Payment will be paid over an 18 month period (the “Severance Period”) in equal installments on the Company’s regular payroll dates, starting on the first regular payroll date following the 30th day after the Separation Date.

 

ii.                                       A prorated portion of the Executive’s actual Annual Bonus, as defined under and payable in accordance with the Employment Agreement.

 

2.                                      Benefits Continuation Payment.  Beginning on the first regular payroll following the thirtieth (30th) day after the Separation Date, the Company will pay to Executive a monthly payment in the amount of $1,500 for 18 months following the Separation Date, less customary and applicable payroll deductions (which amount represents the approximate monthly cost to 

 

 

continue health and  dental insurance coverage under COBRA), on an after-tax basis (such amount, the “Benefits Continuation Payment”).

 

3.                                      Stock Options Extension.  As of the Separation Date and assuming no exercises between the date of this Agreement and the Separation Date, Executive will hold an aggregate of 551,970 stock options to acquire shares of the Company’s common stock, 483,454 of which will be vested as of the Separation Date (the “Vested Options”) and 68,516 of which will be unvested as of the Separation Date (the “Unvested Options”), all of which have been granted under the GMS Inc. Equity Incentive Plan (the “Equity Plan”).  Notwithstanding anything to the contrary in the respective governing option agreement, the Vested Options shall remain outstanding and exercisable until the earlier of (i) the six (6) month anniversary of the Separation Date or (ii) the normal expiration date of the Options, and the Vested Options shall otherwise remain subject to the terms and conditions of the Equity Plan and the respective governing award agreements.  The Unvested Options shall lapse and terminate immediately on the Separation Date, and Executive will cease to have any rights with respect to such terminated Unvested Options as of the Separation Date.  Executive shall forfeit all right, title and interest in and to any unvested restricted stock units as of the Separation Date and the unvested restricted stock units will be reconveyed to the Company without further consideration or any act or action by Executive.

 

The Company’s agreement to provide all of the consideration set forth in this Section is specifically contingent upon Executive (i) executing this Agreement and not revoking the Agreement, as set forth in Section D(6) below; (ii) executing the Supplemental Release of Claims attached hereto as Exhibit A within five (5) days after the Separation Date and not revoking it; and (iii) complying with his obligations under this Agreement and any other continuing contractual obligations he owes to the Company, including but not limited to the obligations set forth in Section 4 of the Employment Agreement.

 

D.                                    Release of Claims.

 

1.                                      In consideration of the payment and benefits set forth in Section C. above, the sufficiency of which the Executive acknowledges, the Executive, with the intention of binding himself and his heirs, executors, administrators and assigns, does hereby release, remise, acquit and forever discharge Holdings (as defined in the Employment Agreement), the Company and each of its and their subsidiaries and affiliates (the “Company Affiliated Group”), their respective present and former officers, directors, executives, shareholders, agents, attorneys, employees and employee benefit plans (and the fiduciaries thereof), and the successors, predecessors and assigns of each of the foregoing (collectively, the “Company Released Parties”), of and from any and all claims, actions, causes of action, complaints, charges, demands, rights, damages, contracts, debts, sums of money, accounts, financial obligations, suits, expenses, attorneys’ fees and liabilities of whatever kind or nature in law, equity or otherwise, whether accrued, absolute, contingent, unliquidated or otherwise and whether now known or unknown, suspected or unsuspected, which the Executive, individually or as a member of a class, now has, owns or holds, or has at any time heretofore had, owned or held, arising on or prior to the date hereof, against any Company Released Party that arises out of, or relates to, the Employment Agreement, the Executive’s employment with the Company or any of its subsidiaries and affiliates, or any termination of such employment, including claims 

 

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(i) for severance or vacation benefits, unpaid wages, salary or incentive payments, (ii) for breach of contract, wrongful discharge, impairment of economic opportunity, defamation, intentional infliction of emotional harm or other tort, (iii) for any violation of applicable state and local labor and employment laws (including, without limitation, all laws concerning unlawful and unfair labor and employment practices) and (iv) for employment discrimination under any applicable federal, state or local statute, provision, order or regulation, and including, without limitation, any claim under Title VII of the Civil Rights Act of 1964 (“Title VII”), 42 U.S.C. § 1981, the Civil Rights Act of 1988, the anti-retaliation provisions of the Fair Labor Standards Act, the Americans with Disabilities Act (“ADA”), the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), the Age Discrimination in Employment Act (“ADEA”), the Older Workers Benefit Protection Act (“OWBPA”), the Family and Medical Leave Act, the Genetic Information Nondiscrimination Act, the anti-retaliation provisions of the Fair Labor Standards Act, the Employee Retirement Income Security Act, the Equal Pay Act, the Occupational Safety and Health Act, the Worker Adjustment and Retraining Notification Act, the Occupational Safety and Health Act, the Employee Polygraph Protection Act, the Fair Credit Reporting Act, and any similar or analogous state statute, excepting only:

 

(a)                     rights of the Executive arising under, or preserved by, this Release;

 

(b)                     the right of the Executive to receive COBRA continuation coverage in accordance with applicable law;

 

(c)                      claims for benefits under any health, disability, retirement, life insurance  or other, similar employee benefit plan (within the meaning of Section 3(3) of ERISA) of the Company Affiliated Group;

 

(d)                     vested rights to exercise stock options pursuant to the terms of applicable award agreements; and

 

(e)                      rights to indemnification the Executive has or may have under the by-laws or certificate of incorporation of any member of the Company Affiliated Group or as an insured under any director’s and officer’s liability insurance policy now or previously in force.

 

2.                                   The Executive acknowledges and agrees that this Release is not to be construed in any way as an admission of any liability whatsoever by any Company Released Party, any such liability being expressly denied.

 

3.                                      This Release applies to any relief no matter how called, including, without limitation, wages, back pay, front pay, compensatory damages, liquidated damages, punitive damages, damages for pain or suffering, costs, and attorneys’ fees and expenses.

 

4.                                      Except as expressly set forth in Section D(10) below, Executive further hereby AGREES NOT TO FILE A LAWSUIT or other legal claim or charge to assert against any Company Released Party any claim released by this Agreement.

 

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5.                                      The Executive specifically acknowledges that his acceptance of the terms of this Release is, among other things, a specific waiver of his rights, claims and causes of action under Title VII, ADEA, ADA and any other federal, state or local law or regulation in respect of discrimination of any kind; provided, however, that nothing herein shall be deemed, nor does anything contained herein purport, to be a waiver of any right or claim or cause of action which by law the Executive is not permitted to waive.

 

6.                                      The Executive acknowledges that he has been given a period of at least 21 days to consider whether to execute this Release (and if he executed the Release prior to the close of the 21-day period, he did so voluntarily).  If the Executive accepts the terms hereof and executes this Release, he may thereafter, for a period of seven (7) days following (and not including) the date of execution, revoke this Release.  In order to make a valid revocation, the Executive must deliver an explicit revocation in writing to Craig Apolinsky, General Counsel, at 100 Crescent Centre Parkway, Suite 800, Tucker, Georgia during the seven-day revocation period.  If no such revocation occurs, this Release shall become irrevocable in its entirety, and binding and enforceable against the Executive, on the day next following the day on which the foregoing seven-day period has elapsed.  If such a revocation occurs, the Executive shall irrevocably forfeit any right to payment of the Severance Amount (as defined above), the Benefits Continuation Payment (as defined above), and the Company automobile (described in Section (C)(3) above), and the Release shall be revoked, but the remainder of the Employment Agreement shall continue in full force.

 

7.                                      The Executive acknowledges and agrees that he has not, with respect to any transaction or state of facts existing prior to the date hereof, filed any complaints, charges or lawsuits against any Company Released Party with any governmental agency, court or tribunal.

 

8.                                      The Executive is advised to consult an attorney about this Release before signing it and Executive acknowledges that he has been advised to seek, and has had the opportunity to seek, the advice and assistance of an attorney with regard to this Release, and has been given a sufficient period within which to consider this Release.

 

9.                                      The Executive acknowledges that this Release relates only to claims based upon facts that exist or have occurred as of the date of this Release.

 

10.                               The Executive acknowledges that the Severance Amount he is receiving in connection with this Release and his obligations under this Release are in addition to anything of value to which the Executive is entitled from the Company.

 

11.                               The Executive understands that nothing contained in this Agreement limits his ability to file a charge or complaint with the Equal Employment Opportunity Commission, the National Labor Relations Board, the Securities and Exchange Commission, or any other federal, state or local governmental agency or commission (“Government Agencies”).  Executive further understands that this Agreement does not limit his ability to communicate with any Government Agencies or otherwise participate in any investigation or proceeding that may be conducted by any Government Agencies in connection with any charge or complaint, whether filed by Executive, on his behalf, or by any other individual.  However, based on Executive’s release of claims set forth in 

 

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this Agreement, Executive understands that he is releasing all claims that he may have, as well as, to the extent permitted by applicable law, his right to recover monetary damages or obtain other relief that is personal to him in connection with any claim he is releasing under this Agreement.

 

E.                                    Consulting and Cooperation.  Executive agrees that he shall, to the extent reasonably requested in writing, (i) during the Severance Period, provide any additional cooperation, assistance, and/or training reasonably requested by the Company to assist in the transition of his work and responsibilities, as and to the extent determined in the Company’s sole discretion; and (ii) cooperate with the Company in any pending or future litigation in which the Company is a party, and regarding which Executive, by virtue of Executive’s employment with the Company, has factual knowledge or information relevant to said litigation.  Executive further agrees that in any such litigation, Executive shall, without the necessity for subpoena, provide, in any jurisdiction in which the Company requests, truthful testimony relevant to said litigation.  The Company will reimburse Executive for any reasonable, out-of-pocket expenses associated with providing such consulting services and/or cooperation.

 

F.                                     Miscellaneous Provisions.

 

1.                                      Status of Employment Agreement.  The Company and Executive agree that the Employment Agreement is hereby terminated, without further action by the parties, as of the Separation Date and will be of no further force and effect, and that neither party has any further obligations under the Employment Agreement as of the Separation Date, except that the provisions of Section 4 of the Employment Agreement shall remain in full force and effect in accordance with their terms, along with any other provisions of the Employment Agreement necessary to interpret or enforce such surviving provisions.

 

2.                                      Governing Law.  This Agreement shall be governed by and construed and enforced in accordance with the laws of the State of Georgia without giving effect to the conflicts of law principles thereof.

 

3.                                      Amendments.  This Agreement may not be amended or modified otherwise than-by a written agreement executed by the parties hereto or their respective successors and legal representatives.

 

4.                                      Severability.  The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement.

 

5.                                      Entire Agreement.  Except as provided herein, this Agreement and the attached Supplemental Release of Claims (Exhibit A) contains the entire agreement between the Company and Executive with respect to the subject matter hereof and shall supersede any other agreement between the parties with respect to the subject matter hereof.

 

6.                                      Successors.  This Agreement binds the parties’ heirs, administrators, representatives, executors, successors, and assigns, and will inure to the benefit of all Company Released Parties and their respective heirs, administrators, representatives, executors, successors, and assigns.

 

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7.                                      Counterparts.  This Agreement may be executed in several counterparts, each of which shall be deemed to be an original, but all of which together shall constitute one and the same instrument.  Signatures delivered by facsimile shall be deemed effective for all purposes.

 

[signature page follows]

 

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IN WITNESS WHEREOF, this Agreement has been signed by the Company and Executive as of December 31, 2018.

 

	
 
    	
GYPSUM MANAGEMENT AND SUPPLY, INC.
    
	
 
    	
 
    
	
 
    	
/s/ Craig D. Apolinsky
    
	
 
    	
By:   
    	
Craig   D. Apolinsky
    
	
 
    	
Title:   
    	
General   Counsel
    
	
 
    	
 
    
	
 
    	
EXECUTIVE
    
	
 
    	
 
    
	
 
    	
/s/ G. Michael Callahan, Jr.
    
	
 
    	
G.   Michael Callahan, Jr.
    

 

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EXHIBIT A

Supplemental Release of Claims

 

1.                                      This Supplemental Release of Claims (the “Supplemental Release”) releases all claims against GMS Inc., a Delaware corporation (the “Company”) and the Releasees (as defined below) based upon facts that may have occurred or arisen between the date G. Michael Callahan, Jr. (“Executive”) signed the Separation, Transition and Release Agreement presented by the Company and executed by Executive on or about April 1, 2019 (the “Executive Transition Agreement”), and Executive’s Separation Date or at any time prior to the Separation Date.  Executive is executing this Supplemental Release in return for, and as a perquisite to the receipt of, the Consideration set forth in Paragraph C of the Executive Transition Agreement.  By executing this Supplemental Release, Executive hereby UNCONDITIONALLY RELEASES AND DISCHARGES THE COMPANY, its successors, subsidiaries, parent companies, assigns, joint ventures, and affiliated companies and their respective agents, legal representatives, shareholders, attorneys, employees, members, managers, officers and directors (collectively, the “Releasees”) from ALL CLAIMS, LIABILITIES, DEMANDS AND CAUSES OF ACTION which Executive may by law release, whether known or unknown, that Executive may have or claim to have against any Releasee for any reason as of the date Executive signs this Supplemental Release, including, but not limited to any and all rights under federal, state and local employment laws including without limitation the Age Discrimination in Employment Act, the Older Workers Benefit Protection Act, Title VII of the Civil Rights Act of 1964, 42 U.S.C. § 1981, the Americans With Disabilities Act, the Family and Medical Leave Act, the Genetic Information Nondiscrimination Act, the anti-retaliation provisions of the Fair Labor Standards Act, the Employee Retirement Income Security Act, the Equal Pay Act, the Occupational Safety and Health Act, the Worker Adjustment and Retraining Notification Act, the Occupational Safety and Health Act, the Employee Polygraph Protection Act, the Fair Credit Reporting Act, and any and all other local, state, and federal law claims arising under statute, contract, or common law.  Except as expressly set forth below regarding Executive’s Protected Rights, Executive further hereby AGREES NOT TO FILE A LAWSUIT or other legal claim or charge to assert against any of the Releasees any claim released by this Supplemental Release, except as may be allowed pursuant to Section 2 “Protected Rights” below.  It is agreed that this is a general release and it is to be broadly construed as a release of all claims, except those that cannot be released by law.  By signing this Supplemental Release, Executive acknowledges that Executive is doing so knowingly and voluntarily, that Executive understands that Executive may be releasing claims Executive may not know about, and that Executive is waiving all rights he may have had under any law that is intended to protect Executive from waiving unknown claims.  Executive also represents and agrees that he has not transferred or assigned, to any person or entity, any claim that he is releasing in this Paragraph 1.

 

2.                                      Protected Rights.  Executive understands that nothing contained in this Supplemental Release limits his ability to file a charge or complaint with the Equal Employment Opportunity Commission, the National Labor Relations Board, or any other federal, state or local governmental agency or commission (“Government Agencies”).  Executive further understands that this Supplemental Release does not limit Executive’s ability to communicate with any Government Agencies or otherwise participate in any investigation or proceeding that may be conducted by any Government Agencies in connection with any charge or complaint, whether filed by Executive, on Executive’s behalf, or by any other individual.  However, based on Executive’s release of claims set forth in 

 

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this Supplemental Release, Executive understands that Executive is releasing all claims that Executive may have, as well as, to the extent permitted by applicable law, Executive’s right to recover monetary damages or obtain other relief that is personal to him in connection with any claim he is releasing under this Supplemental Release.

 

3.                                      Executive may not sign this Supplemental Release until, at the earliest, the Separation Date, and he has until [          ], 2019 to sign this Supplemental Release.  If Executive does not sign this Supplemental Release by [        ], 2019, Executive will not be entitled to receive the Consideration set forth in the Executive Transition Agreement.  Executive acknowledges that he has been given at least 21 calendar days from the date he received this Supplemental Release to review and consider this Supplemental Release before signing it.  Executive is advised to consult an attorney about this Supplemental Release prior to executing it.  To accept this Supplemental Release, Executive should sign this Supplemental Release and return it to Craig Apolinsky, General Counsel, such that he receives it no later than [    ].  After Executive signs this Supplemental Release, Executive will still have an additional seven (7) days in which to revoke his acceptance.  To revoke, Executive must deliver the explicit revocation in writing to Craig Apolinsky, General Counsel by hand, overnight courier, or by certified mail, return receipt requested, and Craig Apolinsky, General Counsel must receive such written notification before the end of the 7-day revocation period.  Payment of the Consideration described in Section B of the Executive Transition Agreement is contingent on Executive signing and not revoking both the Executive Transition Agreement and this Supplemental Release.

 

4.                                      EMPLOYEE ACKNOWLEDGES THAT HE VOLUNTARILY ENTERS INTO THIS AGREEMENT WITH A FULL AND COMPLETE UNDERSTANDING OF ITS TERMS AND LEGAL EFFECT.  EMPLOYEE REPRESENTS THAT HE WAS ADVISED TO CONSULT WITH AN ATTORNEY ABOUT THE PROVISIONS OF THIS AGREEMENT BEFORE SIGNING BELOW.

 

	
Accepted and agreed to:
    
	
 
    	
 
    
	
Print Name:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Signature:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Dated:
    	
 
    	
 
    

 

9Exhibit 10.1

  

  

  

  
    EXECUTION VERSION

  

  

    
      CONFIDENTIAL SEPARATION AND RELEASE AGREEMENT

      

      

      This AGREEMENT (“Separation Agreement”) made
          April 2, 2019 (the “Effective Date”), by and between Sterling
          Jewelers Inc., a Delaware corporation (including its successors and assigns, the “Company”), and Sebastian Hobbs (the “Employee”).

      

      

      WHEREAS, the Company and the Employee entered
          into that certain Termination Protection Agreement, effective January 29, 2017 (“TPA”);

      

      

      WHEREAS, pursuant to the terms and conditions
          of the Signet Jewelers Limited Omnibus Incentive Plan (the “Omnibus Plan”), the Employee was granted the following equity and equity-based awards, all or a
          portion of which are expected to remain unvested as of the Termination Date (defined below): (i) restricted shares of Signet pursuant to Time-Based Restricted Stock Award Agreements dated as of April 7, 2017 and April 25, 2018 (together, the “Restricted Stock Awards”) and (ii) performance-based vesting restricted stock units of Signet pursuant to Performance-Based Restricted Stock Unit Award
          Agreements dated as of April 27, 2017 and April 25, 2018 (the “RSU Awards”);

      

      

      WHEREAS, the Company desires to continue to
          employ the Employee and the Employee has agreed to continue to be employed by the Company through the Termination Date (as defined below);

      

      

      WHEREAS, the Employee and the Company both
          agree that the Employee’s employment with the Company and its subsidiaries and affiliates will terminate effective as of the Termination Date or otherwise pursuant to the terms and conditions of this Separation Agreement.

      

      

      NOW, THEREFORE, in consideration of such
          services and the mutual covenants and promises herein contained, the Company and the Employee hereby agree as follows:

      

      

      
        
          

      

      
      1.           Separation.  The Employee acknowledges that on June 30, 2019 or, if earlier, the date on which the Employee’s employment is terminated by the Company without Cause (as defined below), as determined by the Company, or
          due to the Employee’s death or Disability (as defined below) (such date, the “Termination Date” and such termination, a “Qualifying Termination”) the Employee’s employment with the Signet Group will be terminated.  On April 4, 2019 (the “Transition Date”) or, earlier, upon the request of the Chief Executive Officer of the Signet Group, the Employee will resign from and/or be removed from the Employee’s position, President and Chief Customer Officer of
          Signet Jewelers Limited and its subsidiaries (the “Signet Group”), and from all offices and directorships held by the Employee in the Company or any of its
          subsidiaries or affiliates.  The Employee agrees to execute any documentation presented by the Company to effectuate all such resignations and/or removals from such offices and/or directorships held by the Employee. The Employee acknowledges and
          agrees that from the Transition Date (or such earlier date) through the Termination Date the Employee will continue to be employed by the Company as an advisor to the Chief Executive Officer and to perform such duties as may be assigned from time
          to time by the Chief Executive Officer of the Signet Group or such other officer designated by the Chief Executive Officer of the Signet Group. For purposes of the Separation Agreement, “Cause” shall mean (A) fraud, embezzlement, gross
          insubordination or any act of moral turpitude or misconduct, in each case, on the part of the Employee; (B) conviction of or the entry of a plea of nolo contendere by the Employee for any felony; or (C) (x) a material breach by the Employee of the Employee’s duties, responsibilities or obligations under this Separation
          Agreement, or (y) the willful failure or refusal by the Employee to perform and discharge a specific lawful directive issued to the Employee by the Board of Directors of Signet Jewelers Limited (the “Board”) within a reasonable period of time, not to be less than five (5) business days, following written notice thereof to the Employee by the Company or the Board. For purposes of the Separation
          Agreement, “Disability” shall mean any physical or mental disability that renders the Employee incapable of performing the services required of the Employee for any period or periods aggregating six months during any twelve- month period and for
          purposes of the foregoing, the Employee’s physical or mental disability shall be determined in accordance with any disability plan of or applicable to the Company that is then in effect. In the event the Employee’s employment terminates other
          than in a Qualifying Termination, the Employee will immediately be deemed to resign, and shall resign from and/or be removed from the Employee’s position, President and Chief Customer Officer of the Signet Group, and from all offices and
          directorships held by the Employee in the Company or any of its subsidiaries or affiliates.

      

      

      2.           Termination.

      

      

      (a)          Accrued Benefits. The Employee shall be entitled to receive: (i) base salary and accrued and unused vacation through the date of termination of employment in accordance with the Company’s normal payroll practices,
          (ii) any annual bonus or long-term incentive plan payment that has been earned by the Employee for a completed fiscal year prior to the Termination Date (or with respect to a long-term incentive plan payment, a completed performance cycle) ending
          prior to the date of termination of employment but which remains unpaid as of such date payable in accordance with the applicable plan, and (iii) any vested benefits to which the Employee is entitled under the employee benefit plans of the
          Company, payable pursuant to the terms and conditions of such benefit plans.

      

      

      (b)          Termination Payments.  Subject to the Employee’s timely execution, delivery and non-revocation of a Release (as described in Section 2(c) below) following a Qualifying Termination on the Termination Date, and
          continued compliance with Sections 5, 6, 7, 8 and 9 below, the Employee shall be entitled to receive the following payments and benefits:

      

      

      
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      (i)          continued payment of the Employee’s annual base
          pay in effect on the Termination Date for twelve (12) months following the Termination Date (such period, the “Severance Period”), less applicable
          withholding taxes, paid in accordance with the Company’s payroll practices; provided that, the first payment shall be paid as part of the first full payroll cycle following the thirtieth (30th) day after the Termination Date and shall include
          payments of any amounts that would be due prior to such commencement date (such date, the “Payment Commencement Date”).

      

      

      (ii)         a lump sum amount equal to the annual bonus the
          Employee would have otherwise received for fiscal year 2020, based on actual performance, payable in a lump sum during the period commencing on the 15th of April and ending on the 31st of May following the end of fiscal year 2020.

      

      

      (iii)        if the Employee timely elects coverage under the
          Consolidated Omnibus Budget Reconciliation Act (“COBRA”), a taxable cash payment equal to the monthly employer contribution to the Company’s group health coverage premium for an active employee with the same level of coverage as the Employee had
          on the Termination Date for the Severance Period, with the first payment to be made on the Payment Commencement Date and the remaining payments monthly thereafter for the duration of the Severance Period.

      

      

      (iv)         in respect of each then-ongoing performance cycle
          under the Omnibus Plan as of the Termination Date, (1) with respect to the RSU Awards, at the end of each completed performance cycle for each such award, vesting shall be calculated by multiplying (A) the total number of awards that would have
          vested based on actual performance during the full performance cycle and (B) the quotient obtained from dividing the number of calendar days during the applicable performance cycle through the Termination Date by the number of calendar days in
          such performance cycle, payable upon the conclusion of the applicable performance cycle in accordance with the Omnibus Plan (but no later than the “short-term deferral” period under Section 409A (defined below)), and (2) with respect to the
          Restricted Stock Awards that vest solely based on the provision of services, vesting, as of the Termination Date, shall be calculated by multiplying (A) the total number of awards that would have vested if the Employee had remained employed
          during the full performance cycle and (B) the quotient obtained from dividing the number of calendar days during the applicable performance cycle through the Termination Date by the number of calendar days in such performance cycle, otherwise
          payable in accordance with the Omnibus Plan.

      

      

      (v)         reimbursement of up to $10,000 for the costs
          incurred by Employee for the relocation of Employee’s household goods, subject to the provision of reasonable documentation of such expenses, payable on or prior to December 31, 2019.

      

      

      If the Employee participated in direct deposit as of the Termination Date, the Employee’s payments, as applicable, in Sections 2(b)(i)-(v) will be direct
          deposited.  If the Employee did not participate in direct deposit, the Employee will be issued a live check to the Employee’s last reported home address on file with the Company.  The termination payments and benefits described in this Section 2(b)(i)-(v) will be reduced to cover any outstanding financial obligations the Employee owes to the Company as of the Termination Date, to the extent permissible
          under law, and without the incurrence of additional tax obligations under Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”) and the
          regulations and guidance promulgated thereunder (collectively, “Section 409A”).

      

      

      
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      (c)          The Employee’s entitlement to the payments and
          benefits set forth in Section 2(b) above shall be subject to and contingent upon the Employee’s execution and delivery to the Company of a general release and waiver of
          claims in the form attached hereto as Exhibit A (the “Release”) on or after the
          Termination Date and such Release becoming irrevocable within thirty (30) days following the Termination Date.  For the avoidance of doubt, the Employee shall forfeit the payments and benefits set forth in Section 2(b) if the Release has not been executed, delivered to the Company and become irrevocable within such thirty (30) day period.

      

      

      3.           Sole Payments and Benefits.  The termination payments and benefits set forth in Section 2 shall be the sole and exclusive payments and
          benefits to which the Employee shall be entitled in respect of the Employee’s termination of employment with the Company.

      

      

      4.           No Long-Term Incentive Plan Grants or Merit Increase.  The Employee acknowledges and agrees that (i) he is not entitled to any future equity award grants under the Omnibus Plan or otherwise and (ii) he is not eligible
          for any future merit increase with respect to base salary.

      

      

      5.           Restrictive Covenants.

      

      

      (a)          During the term of the Employee’s employment with
          the Company or any of its subsidiaries or affiliates and for all time thereafter, the Employee shall keep secret and retain in strictest confidence and not divulge, disclose, discuss, copy or otherwise use or suffer to be used in any manner,
          except in connection with the Business of the Company and of any of the subsidiaries or affiliates of the Company, any trade secrets, confidential or proprietary information and documents or materials owned, developed or possessed by or for the
          Company or any of the subsidiaries or affiliates of the Company pertaining to the Business of the Company or any of the subsidiaries or affiliates of the Company; provided that such information referred to in this Section 5(a) shall not include information that is or has become generally known to the public or the jewelry trade without
          violation of this Section 5. For purposes of the Separation Agreement, “Business” shall mean the operation of a retail jewelry business that sells to the public
          jewelry, watches and associated services including through e-commerce.

      

      

      (b)          The Employee acknowledges that all developments,
          including, without limitation, inventions (patentable or otherwise), discoveries, improvements, patents, trade secrets, designs, reports, computer software, flow charts and diagrams, data, documentation, writings and applications thereof
          (collectively, “Works”) relating to the Business or planned business of the Company or any of the subsidiaries or affiliates of the Company that, alone or
          jointly with others, the Employee may create, make, develop or acquire during the term of Employee’s employment with the Company or any of its subsidiaries or affiliates (collectively, the “Developments”) are works made for hire and shall remain the sole and exclusive property of the Company and its subsidiaries and affiliates and the Employee hereby assigns to the Company all of the Employee’s
          right, title and interest in and to all such Developments and the Employee shall take any action reasonably necessary to achieve the foregoing result.  Notwithstanding any provision of this Agreement to the contrary, “Developments” shall not
          include any Works that do not relate to the Business or planned business of the Company or any of the subsidiaries or affiliates of the Company.

      

      

      
        4

        
          

      

      (c)          The Employee agrees that the Employee shall not,
          directly or indirectly, without the prior written consent of the Company:

      

      

      
        
          	

                	(i)	
                  During the Employee’s employment with the Company or any of its subsidiaries or affiliates and for a period of one year commencing upon the date of Employee’s termination
                      of employment (the “Restricted Period”), solicit, entice, persuade or induce any employee, consultant, agent or independent contractor of the Company or of
                      any of the subsidiaries or affiliates of the Company to terminate his or her employment or engagement with the Company or such subsidiary or affiliate, to become employed by any person, firm or corporation other than the Company or
                      such subsidiary or affiliate or approach any such employee, consultant, agent or independent contractor for any of the foregoing purposes; or

                

        

      

      

      

      
        
          	

                	(ii)	
                  during the Employee’s employment with the Company or any of its subsidiaries or affiliates and for a period equal to the Restricted Period, directly or indirectly own,
                      manage, control, invest or participate in any way in, consult with or render services to or for any person or entity (other than for the Company or any of the subsidiaries or affiliates of the Company) which is materially engaged in
                      the Business (“materially” meaning deriving more than 25% of its revenue from the sale of jewelry and watches per year as of the applicable date); provided that the Employee shall be entitled to own up to 1% of any class of outstanding securities of any company whose common stock is listed on a national
                      securities exchange or included for trading on the NASDAQ Stock Market.

                

        

      

      

      

      (d)          The Employee acknowledges that the services to be
          rendered by the Employee are of a special, unique and extraordinary character and, in connection with such services, the Employee will have access to confidential information vital to the Business of the Company and the subsidiaries and
          affiliates of the Company.  By reason of this, the Employee consents and agrees that if the Employee violates any of the provisions of Section 5 hereof, the Company and
          the subsidiaries and affiliates of the Company would sustain irreparable injury and that monetary damages will not provide adequate remedy to the Company and that the Company shall be entitled to have Section 5 specifically enforced by any court having equity jurisdiction.  Nothing contained herein shall be construed as prohibiting the Company or any of the subsidiaries or affiliates of the Company from
          pursuing any other remedies available to it for such breach or threatened breach, including, without limitation, the recovery of damages from the Employee or cessation of payments and benefits hereunder without requirement for posting a bond. The
          Employee further acknowledges that: (i) the Employee will not at any time, directly or indirectly violate this Section 5; (ii) payment of the termination payments and
          benefits in Section 2(b) under this Separation Agreement shall not be made if the Employee violates this Section
              5; (iii) the Company shall have no further obligation at any time to pay the termination payments and benefits in Section 2(b) under this Separation
          Agreement if the Employee violates this Section 5; and (iv) to the extent allowed by law, the Employee shall be required to return to the Company any termination
          payments and benefits the Company paid the Employee less two hundred fifty dollars ($250.00) if the Employee violates this Section 5.

      

      

      
        5

        
          

      

      6.           Cooperation.   The payments and benefits pursuant to Section 2(b) of
          this Separation Agreement are conditioned upon the Employee’s agreement to be reasonably available to assist and otherwise advise and consult with the Company in transitioning responsibilities to other employees of the Company.  The payments and
          benefits pursuant to Section 2(b) of this Separation Agreement are also conditioned upon the Employee’s full and continued cooperation in good faith with the Company,
          its subsidiaries and affiliates and its outside and in-house legal counsel, as may be necessary or appropriate: (i) to respond truthfully to any inquiries that may arise with respect to matters that the Employee was responsible for or involved
          with during the Employee’s employment with the Company, including matters in which Employee has been identified as an individual with knowledge; (ii) to furnish to the Company, as reasonably requested by the Company, from time to time, the
          Employee’s honest and good faith advice, information, judgment and knowledge with respect to all practices at the Company, and employees of the Company; (iii) in connection with any defense, prosecution or investigation of any and all actual,
          threatened, potential or pending court or administrative proceedings or other legal matters in which the Employee may be involved as a party and/or in which the Company determines, in its sole discretion, that the Employee is a relevant witness
          and/or possesses relevant information; (iv) to attend any deposition, trial, hearing or other proceeding to provide truthful testimony, and to prepare for any such deposition, trial, hearing or other proceeding with the Company’s outside or
          in-house counsel;  and (v) in connection with any and all legal matters relating to the Company, its subsidiaries and affiliates, and each of their respective past and present employees, managers, directors, officers, administrators,
          shareholders, members, agents, and attorneys, in which the Employee may be called as an involuntary witness (by subpoena or other compulsory process) served by any third-party, including, without limitation, providing the Company with written
          notice of any subpoena or other compulsory process served on the Employee within forty-eight (48) hours of its occurrence.

      

      

      
        6

        
          

      

      In connection with the matters described in this Section 6,
          the Employee agrees to notify, truthfully communicate and be represented by, and provide requested information to, the Company’s outside and in-house counsel, to fully cooperate and work in good faith with such counsel with respect to, and in
          preparation for, any response to a subpoena or other compulsory process served upon the Employee, any depositions, interviews, responses, appearances or other legal matters, and to testify truthfully and honestly with respect to all matters.  For
          the avoidance of doubt, notwithstanding any legal obligations of the Company’s insurers, the Company has no obligation to provide the Employee with separate counsel in connection with any such matter.

      

      

      The Company shall reimburse the Employee for reasonable expenses, such as travel, lodging and meal expenses, incurred by the Employee
          pursuant to this Section 6 at the Company’s request, and consistent with the Company’s policies for employee expenses.

      

      

      The Employee further acknowledges that all documents prepared by the Company pertaining to the affairs of the Company or any legal
          matter relating to the Company, which may be provided to the Employee or to which the Employee may be given access pursuant to this Section 6 in connection with the
          Employee’s cooperation hereunder with respect to any legal matter relating to the Company, are, and shall remain, the property of the Company at all times.  Except as required by applicable law or court order, the Employee shall not disclose any
          information or materials received in connection with any legal matter relating to the Company.

      

      

      All communications by the Company, its subsidiaries and/or affiliates, and its lawyers to the Employee and all communications by the
          Employee to the Company, its subsidiaries and/or affiliates and its lawyers, in connection with any legal matter relating to the Company, its subsidiaries and/or affiliates, shall, to the fullest extent permitted by law, be privileged and
          confidential and subject to the work product doctrine.  No such communication, information, or work product shall be divulged by the Employee to any person or entity, except at the specific direction of an authorized representative of the Company
          and its lawyers.

      

      

      The Employee further agrees that the Employee must also: (i) complete any outstanding performance evaluations; (ii) repay any
          outstanding bills, advances, debts, etc., due to the Company, as of the date of the Employee’s termination of employment; and (iii) cooperate with the Company in performing all transition and other matters required by the Company prior to the
          date of the Employee’s termination of employment.

      

      

      7.           Return of Property and Documents. As a material provision of this Separation Agreement, and as a condition of the receipt of the termination payments and benefits described in Sections 2(b) of this Separation Agreement, as of the date of the Employee’s termination of employment, the Employee shall have, and represent to have, returned to the Company all Company property
          (including, without limitation, any and all computers, identification cards, card key passes, fobs, corporate credit cards, corporate phone cards, corporate motor vehicles, files, memoranda, keys and software) in the Employee’s possession and the
          Employee shall not make or retain any duplicates or reproductions of such items.  The Employee further agrees that, as a material provision of this Separation Agreement, as of the date of the Employee’s termination of employment, the Employee
          shall have, and represent to have, delivered to the Company all copies of any confidential information of the Company in the Employee’s possession, custody or control, including all copies of any analyses, compilations, studies or other documents
          in the Employee’s possession, custody or control that contain any such confidential information (whether in electronic or paper form), and that as of the date of the Employee’s termination of employment, the Employee shall no longer possess any
          such Company property or confidential information in any form.  The Company has no obligation to pay the termination payments and benefits in Section 2(b) of this
          Separation Agreement until it is satisfied that the Employee has returned all Company property the Employee possesses or controls.

      

      

      
        7

        
          

      

      8.           Confidentiality.  The Employee acknowledges and agrees that the Employee will keep the terms, amount, and facts of, and any discussions leading up to, this Separation Agreement strictly and completely confidential,
          and that the Employee will not communicate or otherwise disclose to any employee of the Company (past, present, or future), or to any member of the general public, the terms, amounts, copies, or fact of this Separation Agreement, except as may be
          required by law or compulsory process; provided, however, that the Employee may make such disclosures to the Employee’s tax/financial advisors or legal counsel as long
          as they agree to keep the information confidential.   If asked about any of such matters, to the extent permissible, the Employee’s response shall be that the Employee may not discuss any of such matters, except that nothing in this Separation
          Agreement shall affect the Employee’s rights to engage in activity protected by Section 7 of the National Labor Relations Act.  Notwithstanding anything herein to the contrary, nothing in this Section 8 shall: (i) prohibit the Employee from making reports of possible violations of federal law or regulation to any governmental agency or entity in accordance with the provisions of and rules promulgated under
          Section 21F of the Securities Exchange Act of 1934 or Section 806 of the Sarbanes-Oxley Act of 2002, or of any other whistleblower protection provisions of state or federal law or regulation; or (ii) require notification or prior approval by the
          Company of any reporting described in clause (i).

      

      

      The Employee is hereby notified, in accordance with the Defend Trade Secrets Act of 2016, 18 U.S.C. § 1833(b), that: (i) an
          individual shall not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that is made in confidence to a federal, state, or local government official, or to an attorney, solely for
          the purpose of reporting or investigating a suspected violation of law; (ii) an individual shall not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that is made in a complaint
          or other document filed in a lawsuit or other proceeding, if such filing is made under seal; and (iii) an individual who files a lawsuit for retaliation by an employer for reporting a suspected violation of law may disclose the 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 pursuant to court order. 
          Notwithstanding anything herein to the contrary, nothing in this Separation Agreement shall: (i) prohibit the Employee from making reports of possible violations of federal law or regulation to any governmental agency or entity in accordance with
          the provisions of and rules promulgated under Section 21F of the Securities Exchange Act of 1934 or Section 806 of the Sarbanes-Oxley Act of 2002, or of any other whistleblower protection provisions of state or federal law or regulation; or (ii)
          require notification or prior approval by the Company of any reporting described in clause (i).

      

      

      
        8

        
          

      

      In the event of a breach of the confidentiality provisions set forth in this Section 8 of the Separation Agreement by the Employee, the Company may suspend any payments or benefits due under this Separation Agreement pending the outcome of litigation and/or arbitration regarding such claimed
          breach of this Separation Agreement by the Employee.

      

      

      9.           Non-Defamation and Non-Disparagement.  The Employee shall not at any time, publicly or privately, verbally or in writing, directly or indirectly,
          make or cause to be made any defaming and/or disparaging, derogatory, misleading or false statement about the Company or its products, or any current or former directors, officers, employees, or agents of the Company, or the business strategy,
          plans, policies, practices or operations of the Company to any person or entity, including members of the investment community, press, customers, competitors, employees and advisors of the Company.  Truthful disclosure to any government agency
          regarding possible violations of federal law or regulation in accordance with any whistleblower protection provisions of state or federal law or regulation shall not be deemed to violate this paragraph.

      

      

      Employee recognizes that the breach of this Section 9
          will cause serious and irreparable injury to the Company.  The Employee further acknowledges that: (i) the Employee will not at any time, directly or indirectly, violate this Section
              9 regarding non-defamation and non-disparagement; (ii) payment of the termination payments and benefits set forth in Section 2(b) of this Separation
          Agreement shall not be made if the Employee violates this Section 9 regarding non-defamation and non-disparagement; (iii) the Company shall have no further obligation
          at any time to pay the termination payments and benefits set forth in Section 2(b) of this Separation Agreement if the Employee violates this Section 9 regarding non-defamation and non-disparagement; and (iv) to the extent allowed by law, the Employee shall be required to return to the Company any termination payments and benefits
          paid less two hundred fifty dollars ($250.00) if the Employee violates this Section 9 regarding non-defamation and non-disparagement.

      

      

      10.          Consequences of Breach.  The Employee acknowledges and agrees that the obligations and responsibilities in this Separation Agreement are reasonable and not unduly restrictive.  The Employee further recognizes that
          damages incurred by the Company as a result of the Employee’s breach of this Separation Agreement will be difficult to measure, that monetary damages will not provide adequate relief, and that in the event of any such breach: (i) the Company
          shall be entitled to apply for and receive an injunction without bond to restrain any such violation; (ii) the Company shall not be obligated to provide the termination payments or benefits under this Separation Agreement; (iii) the Employee
          shall be obligated to pay to the Company its costs and expenses in enforcing its rights; and (iv) as an alternative to (iii), the Company may withhold and retain all but two hundred fifty dollars ($250.00) of the value of the termination payment
          and benefits under this Separation Agreement provided to the Employee.  The covenants in this Section 10 shall not be deemed to be a penalty nor forfeiture.

      

      

      
        9

        
          

      

      11.          Severability.  In the event that any one or more of the provisions of this Separation Agreement are held to be invalid, illegal or unenforceable, the validity, legality and enforceability of the remainder of the
          Separation Agreement shall not in any way be affected or impaired thereby.

      

      

      12.          Waiver.  No waiver by either party of any breach by the other party of any condition or provision of this Separation Agreement to be performed by such other party shall be deemed a waiver of any other provision or
          condition at the time or at any prior or subsequent time.

      

      

      13.          Governing Law and Forum.  This Separation Agreement shall be subject to, and governed by, the laws of the State of Ohio applicable to contracts made and to be performed therein, without regard to conflict of laws
          principles thereof. Any action to enforce any of the provisions of this Separation Agreement shall be brought in a court of the State of Ohio located in Summit County or in a Federal court located in Cleveland, Ohio.  The parties consent to the
          jurisdiction of such courts and to the service of process in any manner provided by Ohio law.  Each party irrevocably waives any objection which it may now or hereafter have to the laying of the venue of any such suit, action, or proceeding
          brought in such court and any claim that such suit, action, or proceeding brought in such court has been brought in an inconvenient forum and agrees that service of process in accordance with the foregoing sentences shall be deemed in every
          respect effective and valid personal service of process upon such party.

      

      

      THE EMPLOYEE ACKNOWLEDGES THAT, BY SIGNING THIS SEPARATION AGREEMENT, HE IS WAIVING ANY RIGHT THAT HE MAY HAVE TO A JURY TRIAL RELATED TO THIS SEPARATION
          AGREEMENT.

      

      

      14.          Withholding.  The Company shall deduct or withhold, or require the Employee to remit to the Company, the minimum statutory amount to satisfy federal, state or local taxes required by law or regulation to be withheld
          with respect to any benefit provided hereunder.

      

      

      15.          Entire Agreement.  This Separation Agreement and the Release, constitute the entire agreement and understanding of the parties with respect to the subject matter herein and supersede all prior agreements, arrangements
          and understandings, whether written or oral, between the parties, including the TPA, except that nothing in this Separation Agreement shall negate or limit the Employee’s obligations under the Code of Business Conduct and Ethics.  There are no
          restrictions, agreements, promises, warranties, covenants or undertakings between the parties with respect to the subject matter herein other than those expressly set forth herein. The Employee acknowledges and agrees that he is not relying on
          any representations or promises by any representative of the Company concerning the meaning of any aspect of this Separation Agreement or the Release.  This Separation Agreement and the Release may not be altered or modified other than in a
          writing signed by the Employee and an authorized representative of the Company.

      

      

      
        10

        
          

      

      16.          Notices.  All notices given hereunder shall be given in writing, shall specifically refer to this Separation Agreement and shall be personally delivered or sent by telecopy or other electronic facsimile transmission
          or by registered or certified mail, return receipt requested, at the address set forth below or at such other address as may hereafter be designated by notice given in compliance with the terms hereof:

      

      

      
        	 	
                If to the Employee:

              	
                To the Employee’s last address set forth on the payroll records of the Company.

              

      

      

      

      
        	 	
                If to the Company:

              	
                Sterling Jewelers Inc.

              

      

      375 Ghent Road

      Akron, Ohio 44333

      Fax: (330) 664-4379

      Attn: Chief Legal, Risk & Corporate Affairs Officer

      

      

      If notice is mailed, such notice shall be effective upon mailing, or if notice is personally delivered or sent by telecopy or
          other electronic facsimile transmission, it shall be effective upon receipt.

      

      

      17.          Successors and Assigns.  This Separation Agreement is intended to bind and inure to the benefit of and be enforceable by the Employee, the Company and their respective heirs, successors and assigns, except that the
          Employee may not assign his rights or delegate his obligations hereunder without the prior written consent of the Company.

      

      

      18.          Section 409A.

      

      

      (a)          The intent of the parties is that payments and
          benefit under this Separation Agreement comply with or be exempt from Section 409A and, accordingly, to the maximum extent permitted, this Separation Agreement shall be interpreted to be in compliance therewith or exempt therefrom, as
          applicable.  If any other payments of money or other benefits due to the Employee hereunder could cause the application of an accelerated or additional tax under Section 409A of the Code, the Company may (i) adopt such amendments to the
          Separation Agreement, including amendments with retroactive effect, that the Company determines necessary or appropriate to preserve the intended tax treatment of the benefits provided by the Separation Agreement and/or (ii) take such other
          actions as the Company determines necessary or appropriate to comply with the requirements of Section 409A.

      

      

      
        11

        
          

      

      (b)          A termination of employment shall not be deemed to
          have occurred for purposes of this Separation Agreement providing for the payment of any amounts or benefits that are considered nonqualified deferred compensation under Section 409A upon or following a termination of employment, unless such
          termination is also a “separation from service” within the meaning of Section 409A and the payment thereof prior to a “separation from service” would violate Section 409A.  For purposes of any such provision of this Separation Agreement relating
          to any such payments or benefits, references to a “termination,” “termination of employment” or like terms shall mean “separation from service.”  If the Employee is deemed on the date of termination to be a “specified employee” within the meaning
          of that term under Section 409A(a)(2)(B), then, notwithstanding any other provision herein, with regard to any payment or the provision of any benefit that is considered nonqualified deferred compensation under Section 409A payable on account of
          a “separation from service,” such payment or benefit shall not be made or provided prior to the date which is the earlier of (A) the expiration of the six-month period measured from the date of such “separation from service” of the Employee, and
          (B) the date of the Employee’s death (the “Delay Period”).  Upon the expiration of the Delay Period, all payments and benefits delayed pursuant to this Section 18(b) (whether they would have otherwise been payable in a single lump sum or in installments
          in the absence of such delay) shall be paid or reimbursed to the Employee in a lump sum on the first business day following the Delay Period, and any remaining payments and benefits due under this Separation Agreement shall be paid or provided in
          accordance with the normal payment dates specified for them herein.

      

      

      (c)          (i) All expenses or other reimbursements as
          provided herein shall be payable in accordance with the Company’s policies in effect from time to time, but in any event any reimbursements that are non-qualified deferred compensation subject to Section 409A of the Code shall be made on or prior
          to the last day of the taxable year following the taxable year in which such expenses were incurred by the Employee; (ii) no such reimbursement or expenses eligible for reimbursement in any taxable year shall in any way affect the expenses
          eligible for reimbursement in any other taxable year; and (iii) the right to reimbursement or in-kind benefits shall not be subject to liquidation or exchanged for another benefit.

      

      

      (d)          For purposes of Section 409A, the Employee’s right
          to receive any installment payments pursuant to this Separation Agreement shall be treated as a right to receive a series of separate and distinct payments.  Whenever a payment under this Separation Agreement specifies a payment period with
          reference to a number of days (e.g., “payment shall be made within thirty days following the date of termination”), the actual date of payment within the specified period shall be within the sole discretion of the Company.

      

      

      
        12

        
          

      

      (e)           Nothing contained in this Separation Agreement
          shall constitute any representation or warranty by the Company regarding compliance with Section 409A.  The Company has no obligation to take any action to prevent the assessment of any additional income tax, interest or penalties under Section
          409A on any person and the Company, its subsidiaries and affiliates, and each of their employees and representatives shall not have any liability to the Employee with respect thereto.

      

      

      19.          Compliance with Board Policies. The Employee shall be subject to the written policies of the Board, including, without limitation, any policy relating to the claw back of compensation, as they exist from time to time
          during the Employee’s employment with the Company.

      

      

      20.          Counterparts.  This Separation Agreement may be executed in counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument.

      

      

      

      

      [SIGNATURE PAGE FOLLOWS]

      
        13

        
          

      

      IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date set forth above.

      

      

      	 	
              STERLING JEWELERS INC.

            
	 	 	 	 
	 	
              By:

            	
              /s/ Virginia C. Drosos

            	 
	 	
              Name:  

                

            	
              Virginia C. Drosos

            	 
	 	
              Title:

            	
              Chief Executive Officer

            
	 	 	 	 
	 	
              EMPLOYEE

            
	 	 	 	 
	 	
              By:

            	
              /s/ Sebastian Hobbs

            	 
	 	 	
              Sebastian Hobbs

            	 

      

      

      
        
          

      

      Exhibit A

      

      

      RELEASE AGREEMENT

      

      

      This RELEASE (“Release”) dated as of ___________, 20__ between Sterling Jewelers Inc., a Delaware corporation (the “Company”), and
          Sebastian Hobbs (the “Employee”).

      

      

      WHEREAS, the Company and the Employee previously entered into that certain Separation Agreement dated as of April 2, 2019 (the “Separation Agreement”) pursuant to which the Employee’s employment with the Company shall terminate as of June 30, 2019 or, if earlier, the Employee’s
          termination of employment by the Company without Cause (as determined by the Company) or due to the Employee’s death or Disability; and

      

      

      NOW, THEREFORE, in consideration of the promises and mutual agreements contained herein and in the Separation Agreement, the Company and
          the Employee agree as follows:

      

      

      1.          Capitalized terms not defined herein shall have the meaning as defined
          under the Separation Agreement.

      

      

      2.          In consideration of the Employee’s release under Paragraph 3 hereof, the
          Company shall pay to the Employee or provide benefits to the Employee as set forth in Section 2, as applicable, of the Separation Agreement, which is attached hereto and made a part hereof.

      

      

      3.          The Employee, on the Employee’s own behalf and on behalf of the Employee’s
          heirs, estate and beneficiaries, does hereby release the Company, and in such capacities, any of its subsidiaries or affiliates, and each past or present officer, director, agent, employee, shareholder, and insurer of any such entities, from any
          and all claims made, to be made, or which might have been made of whatever nature, whether known or unknown, from the beginning of time, including those that arose as a consequence of the Employee’s employment with the Company, or arising out of
          the severance of such employment relationship, or arising out of any act committed or omitted during or after the existence of such employment relationship, all up through and including the date on which this Release is executed, including,
          without limitation, any tort and/or contract claims, common law or statutory claims, claims under any local, state or federal wage and hour law, wage collection law or labor relations law, claims under any common law or other statute, claims of
          age, race, sex, sexual orientation, religious, disability, national origin, ancestry, citizenship, retaliation or any other claim of employment discrimination, including under Title VII of the Civil Rights Acts of 1964 and 1991, as amended (42
          U.S.C. §§ 2000e et seq.), Age Discrimination in Employment Act, as amended (29 U.S.C. §§ 621, et seq.); the Americans with Disabilities Act (42 U.S.C. §§ 12101 et seq.), the Rehabilitation Act of 1973 (29 U.S.C. 701 et seq.), the Family and Medical Leave Act (29 U.S.C. §§ 2601 et seq.),
          the Employee Retirement Income Security Act of 1974, as amended (29 U.S.C. §§ 1001 et seq.), the Ohio Civil Rights Act (Ohio Rev. Code Ann. §§
          4112.01-4112.99, the Ohio Whistleblower’s Protection Statue (Ohio Rev. Code Ann. §§ 4113.51-4113.53), and any other law (including any state or local law or ordinance) prohibiting employment discrimination or relating to employment, retaliation
          in employment, termination of employment, wages, benefits or otherwise.  In connection with this release provision, the Employee does not waive the Employee’s right to file a charge with the EEOC or participate in an investigation conducted by
          the EEOC; however, the Employee expressly waives the Employee’s right to monetary or other relief should any administrative agency, including but not limited to the EEOC, pursue any claim on the Employee’s behalf, except that the Employee is not
          prohibited from receiving any monetary award from the Securities and Exchange Commission pursuant to Section 21F of the Securities Exchange Act of 1934.  The Employee relinquishes any right to future employment with the Company and the Company
          shall have the right to refuse to re-employ the Employee, in each case without liability of the Employee or the Company.  The Employee acknowledges and agrees that even though claims and facts in addition to those now known or believed by him to
          exist may subsequently be discovered, it is the Employee’s intention to fully settle and release all claims he may have against the Company and the persons and entities described above, whether known, unknown or suspected.

      

      

      
        
          

      

      
      4.          The Company and the Employee acknowledge and agree that the release
          contained in Paragraph 3 does not, and shall not be construed to, release or limit the scope of any existing obligation of the Company and/or any of its subsidiaries or affiliates (i) to defend and indemnify the Employee for the Employee’s acts
          as an officer or director of Company in accordance with the Certificate of Incorporation and all agreements thereunder, (ii) to pay any amounts or benefits pursuant to Section 2 of the Separation Agreement, or (iii) with respect to the Employee’s
          rights as a shareholder of the Company, Signet or any of their subsidiaries.

      

      

      5.          The Employee acknowledges that pursuant to the Release set forth in
          Paragraph 3 above, the Employee is waiving and releasing any rights he may have under the Age Discrimination in Employment Act of 1967 (“ADEA”) and that the Employee’s waiver and release of such rights is knowing and voluntary. The Employee
          acknowledges that the consideration given for the ADEA waiver and release under this Release is in addition to anything of value to which the Employee was already entitled.

      

      

      (a)          The Employee further acknowledges that he has been advised by this writing that:

      

      

      (i)          the Employee should consult with an attorney prior to executing this Release and has had an opportunity to do so;

      

      

      (ii)         the Employee has up to twenty-one (21) days within which to consider this ADEA waiver and release;

      

      

      
        2

        
          

      

      (iii)        the Employee has seven (7) days following the Employee’s execution of this Release to revoke
            this ADEA waiver and release, but only by providing written notice of such revocation to the Company in accordance with the “Notice” provision in Section 15 of the Agreement;

      

      

      (iv)        the ADEA waiver and release shall not be effective until the seven (7) day revocation period has expired; and

      

      

      (v)         the twenty-one (21) day period set forth above shall run from the date the Employee receives
            this Release.  The Parties agree that any modifications made to this Release prior to its execution shall not restart, or otherwise affect, this twenty-one day (21) period.

      

      

      (b)          It is the intention of the parties in executing this
          Release that this Release shall be effective as a full and final accord and satisfaction and release of and from all liabilities, disputes, claims and matters covered under this Release, known or unknown, suspected or unsuspected.

      

      

      6.            This Release shall become effective on the first (1st) day
          following the day that this Release becomes irrevocable under Paragraph 5.  All payments due to the Employee shall be payable in accordance with the terms of the Agreement.

      

      

      [remainder of page intentionally blank]

      

      

      
        3

        
          

      

      IN WITNESS WHEREOF, the parties have executed this Release on the date first above written.

      

      

      	 	
              STERLING JEWELERS INC.

            	 
	 	  	 
	 	
              By:

            	       	 
	 	 	 	 
	 	
              Name:

                

            	 
	 	
              Title:

            	 
	 	 	 	 
	 	
              SEBASTIAN HOBBS

            	 
	 	 	 	 
	 	   

            	   

            	 

      

      

    

    

  

  4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00294-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00294-of-00352.parquet"}]]