Document:

Transition Agreement and Release between the Company and Edmond S. Thomas

 Exhibit 10.1 

TRANSITION AGREEMENT AND RELEASE 

THIS TRANSITION AGREEMENT AND RELEASE (this “Agreement”), is made and entered into as of this 30th day of August, 2010
(the “Execution Date”) and effective as of October 9, 2010 (the “Effective Date”), by and between The Wet Seal, Inc., a Delaware corporation (the “Company”), and Edmond S. Thomas
(“Executive,” and together with the Company, the “Parties”). 
 W I T N E S S E T H:

 WHEREAS, Executive serves as President and Chief Executive Officer of the Company pursuant to an employment agreement dated
as of September 6, 2007 (the “Employment Agreement”) and also serves as a member of the Company’s Board of Directors (the “Board”); 

WHEREAS, the Term (as defined in the Employment Agreement) of the Employment Agreement will end on October 8, 2010 (the
“Employment Agreement Expiration Date”); 
 WHEREAS, by mutual agreement among the Parties, the Employment
Agreement will not be renewed; however, Executive’s employment with the Company will continue following the Employment Agreement Expiration Date until 5:00 p.m. Pacific Time on February 8, 2011 (the “Termination Date”);

 WHEREAS, from the period commencing on the Execution Date and ending on the Employment Agreement Expiration Date, the terms
and conditions of Executive’s employment shall continue to be governed by the terms of the Employment Agreement (including, without limitation, the restrictions contained in Sections 6 through 10 thereof); 

WHEREAS, from the period commencing on the Effective Date and ending at 5:00 p.m. Pacific Time on the Termination Date (the
“Transition Period”), Executive has agreed to (a) undertake such duties and projects as reasonably requested by the Board, (b) assist in the Company’s search for a successor and (c) ensure an orderly and complete
transition of his duties as President and Chief Executive Officer of the Company to any such successor appointed by the Board; and 

WHEREAS, Executive will resign his position as a member of the Board as of the Employment Agreement Expiration Date and Executive will
resign his employment with the Company as of the Termination Date. 
 NOW, THEREFORE, for and in consideration of the mutual
promises, covenants and obligations contained herein and in satisfaction of the Company’s obligations to Executive, the Company and Executive agree as follows: 

 ARTICLE I: TRANSITION AND RESIGNATION 

Section 1.1 Termination of Employment; Effectiveness of Agreement. Except as expressly set forth herein, the Employment
Agreement shall expire and cease to have any effect as of the Employment Agreement Expiration Date. This Agreement shall become effective as of the Effective Date provided that the following conditions have been met: (a) Executive has been
continuously employed by the Company and served in his capacity as President and Chief Executive Officer through the Employment Agreement Expiration Date and (b) Executive has executed, delivered to the Company and not revoked this Agreement
and the release set forth on Annex A attached hereto (which release shall not be signed earlier than the Effective Date). 

Section 1.2 Duties of Executive. During the Transition Period, Executive shall continue to be employed by the Company on a
full-time basis and his duties shall include such duties and projects as may be reasonably requested by the Board, including, without limitation, serving as interim President and Chief Executive Officer and providing such services as are necessary
to transition the roles of President and Chief Executive Officer to the Board’s designated successor to such positions. Executive shall use Executive’s good faith, best efforts and judgment (a) in performing Executive’s duties as
requested by the Board including, but not limited to, the transition services contemplated above and (b) to act in the best interests of the Company. Executive shall devote his full business time, attention and efforts to the business of the
Company, but may participate in charitable and personal investment activities to a reasonable extent, as long as such activities do not interfere with the performance of his duties and responsibilities as requested by the Board. 

Section 1.3 Termination of Employment. The Company may, in its sole discretion, elect to terminate Executive’s
employment and the Transition Period prior to the Termination Date, subject to its obligations to Executive pursuant to Sections 2.3(c) and 2.3(e) hereof. 

Section 1.4 Resignation. If not terminated sooner in accordance with Section 1.3, Executive shall resign all positions
he holds with the Company in any capacity as an employee or officer of the Company and its affiliates effective as of the close of business on the Termination Date. Executive acknowledges that his termination as of the Termination Date shall
constitute a “separation from service” within the meaning of Section 409A of the Internal Revenue Code of 1986, as amended (“Section 409A”). 

ARTICLE II: PAYMENTS AND BENEFITS 

Section 2.1 Compensation Prior to the Employment Agreement Expiration Date. For the period commencing on the Execution Date
and ending on the Employment Agreement Expiration Date, Executive shall continue to be compensated pursuant to the terms of the Employment Agreement. Executive acknowledges and agrees that none of the actions contemplated herein give Executive the
right to terminate his employment for “Good Reason” (as defined in the Employment Agreement) and that he is not entitled to any severance upon the expiration of the Term of the Employment Agreement. The Parties acknowledge that pursuant to
the terms of the Performance Share and Restricted Share Award Agreement between the Company and Executive dated October 8, 2007, Executive will vest in 166,668 shares of 

 

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restricted stock on October 8, 2010 and all outstanding unvested Performance Shares shall automatically be forfeited without payment of any consideration to Executive as of October 8,
2010. 
 Section 2.2 Compensation During the Transition Period. 

(a) During the Transition Period, Executive shall continue to receive his Base Compensation (as defined in the Employment Agreement) at
the annualized rate of $750,000 ($62,500 per month), less applicable withholdings by the Company. Such Base Compensation shall be paid in installments in accordance with the Company’s customary payroll practices. 

(b) Executive shall participate in the Company’s 2010 Corporate CEO Incentive Plan (the “Incentive Plan”) with
respect to the fiscal year ending January 29, 2011 (the “2010 Fiscal Year”). Executive’s bonus, if any, shall be determined in accordance with the terms of the Incentive Plan and calculated as previously agreed to by the
Company and Executive. Any bonus earned during the 2010 Fiscal Year shall be paid at such time as the Company customarily pays annual bonuses to its executive officers and following certification by the Compensation Committee of the Board of the
achievement of applicable EBITDA performance measures and the amount of the bonus to be paid to Executive for the 2010 Fiscal Year. Notwithstanding anything to the contrary in the Incentive Plan or Section 3.2(a) of the Employment Agreement, if
the Company terminates Executive’s employment for any reason or if Executive dies prior to the end of the 2010 Fiscal Year and the EBITDA performance measures as previously agreed to by the Company and Mr. Thomas are achieved, Executive
(or his estate or beneficiaries in the event of his death) shall be entitled to a pro rata bonus for the 2010 Fiscal Year calculated based on the level of achievement of the EBITDA performance measures and the number of days Executive was employed
during the 2010 Fiscal Year, as determined by the Company. 
 (c) Executive’s 33,334 outstanding unvested stock options
that were granted pursuant to that certain Stock Option Agreement between the Company and Executive dated as of March 7, 2008 shall vest on February 8, 2011. 

(d) During the Transition Period, Executive shall be entitled to seven (7) days of paid vacation to be used and accrued in
accordance with the Company’s policy as it may be established from time to time. In addition, Executive shall receive other paid time-off in accordance with the Company’s policies for senior executives as such policies may exist from time
to time. 
 (e) During the Transition Period, Executive shall be entitled to participate in such employee benefit plans and
insurance programs offered by the Company to its employees generally, or which it may adopt from time to time for its employees generally, in accordance with the eligibility requirements for participation therein. 

(f) During the Transition Period, the Company shall provide Executive with a luxury sedan automobile for his use and shall provide
customary insurance coverage for such automobile. On or prior to the Termination Date (or any earlier termination of employment), 

 

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Executive shall return any such automobile unless, prior thereto, he agrees to assume and become obligated under the automobile lease of the Company with respect thereto. 

(g) During the Transition Period, the Company shall reimburse Executive for all reasonable and necessary out-of-pocket business, travel
and entertainment expenses incurred by Executive in the performance of his duties and responsibilities hereunder, subject to the Company’s normal policies and procedures for expense verification and documentation. 

(h) Notwithstanding the provisions contained in this Section 2.2, if Executive’s employment terminates for any reason prior to
the end of the Transition Period, the Company’s obligation to provide the compensation and benefits contemplated herein shall cease effective as of the date of Executive’s termination of employment. 

Section 2.3 Transition Payment; Accrued Amounts; COBRA. In consideration of Executive’s execution and non-revocation of
the release set forth on Annex B attached hereto (which release shall not be signed earlier than the Termination Date (or Executive’s earlier termination of employment)) and subject to Executive’s continued compliance with the terms
and conditions of this Agreement and Executive’s continuous employment with the Company as of the Employment Agreement Expiration Date and continued employment throughout the Transition Period, the Company agrees to pay or provide Executive
with the following payments and benefits: 
 (a) On the Termination Date (or Executive’s earlier termination of
employment), the Company shall pay Executive for any accrued but unused vacation and any accrued but unpaid Base Compensation through the Termination Date and Executive shall be entitled to vested benefits, if any, owed to Executive under the terms
of the employee benefit plans referenced in Section 2.2(e) above in accordance with their terms. 
 (b) Within thirty
(30) days following the Termination Date (or Executive’s earlier termination of employment), the Company shall reimburse Executive for unreimbursed reasonable and necessary out-of-pocket business, travel and entertainment expenses incurred
by Executive in the performance of his duties and responsibilities during the Transition Period, subject to the Company’s normal policies and procedures for expense verification and documentation. 

(c) The Company shall pay Executive a cash payment equal to $750,000, which shall be payable in six (6) equal
monthly installments beginning on the 30th day following
the Termination Date (the “Transition Payment”); provided, that, Executive shall only be entitled to the Transition Payment if the release set forth on Annex B has been executed and not revoked within 30 days
following the Termination Date. Except as otherwise provided in Section 2.3(d) hereof, Executive must remain employed by the Company throughout the Transition Period in order to be entitled to the Transition Payment. For the avoidance of doubt,
if (i) Executive dies or becomes Disabled, (ii) Executive resigns for any reason or (iii) Executive’s employment terminates for any reason other than a termination by the Company without “Cause” (as defined in the
Employment Agreement but also including a breach of this Agreement), in each case, prior to the end of the Transition Period, he shall not be entitled to the Transition Payment. 

 

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 (d) The Parties acknowledge that the Company may elect to terminate
Executive’s employment prior to the end of the Transition Period and such termination shall not be a breach of this Agreement. If the Company elects to terminate Executive’s employment prior to the end of the Transition Period and such
termination constitutes a termination without Cause, the Company shall pay Executive the Transition Payment in six (6) equal monthly installments beginning on the
30th day following his termination of employment, subject
to the release requirements contained in Section 2.3(c) and the Company shall have no further obligations to Executive. 

(e) If Executive’s employment terminates on the Termination Date, or if Executive’s employment is terminated by the Company
without Cause prior to the Termination Date, and Executive intends to continue his medical coverage under COBRA, for a one (1) year period following the date of Executive’s termination of employment, the Company shall reimburse Executive
for the cost of his monthly COBRA premium that is in excess of the active employee rate in order to provide continued group medical and dental benefits for Executive and/or his family under the plans and programs in which Executive and/or his family
participated immediately prior to Executive’s termination of employment; provided, that, Executive must timely elect COBRA coverage to the extent available under the Company’s health plans and timely pay the monthly premium
for such COBRA coverage (the “COBRA Benefit”). Any payment or reimbursement under this provision shall be payable on the first Company payroll date in each month following Executive’s termination of employment. 

(f) Executive acknowledges and agrees that he is not otherwise entitled to the Transition Payment or the COBRA Benefit and that the
Transition Payment and the COBRA Benefit constitute additional consideration for Executive’s execution, delivery to the Company and non-revocation of the release set forth on Annex B. Executive further acknowledges that if Executive
breaches this Agreement, including a violation of any of the restrictions contained in Article III below, any portion of the Transition Payment or the COBRA Benefit that is thereafter due from the Company to Executive shall be terminated immediately
and the Company’s obligation to pay, and Executive’s right to receive, any such portion of the Transition Payment or the COBRA Benefit shall terminate and be of no further force and effect. 

Section 2.4 Death or Disability. If Executive dies during the Transition Period, Executive’s employment shall terminate
on the date of his death. The Company may, consistent with applicable law, terminate Executive’s employment if he becomes Disabled (as defined in the Employment Agreement), upon delivery of a Notice of Termination (as defined in the Employment
Agreement) to Executive. Upon termination of Executive’s employment due to Executive’s death or by the Company due to Executive’s Disability, Executive shall be entitled to: 

(a) Within 72 hours following the date of Executive’s termination of employment due to death or Disability, the Company shall pay
Executive for any accrued but unused vacation and any accrued but unpaid Base Compensation through the date of his termination of employment and Executive shall be entitled to vested benefits, if any, owed to Executive under the terms of the
employee benefit plans referenced in Section 2.2(d) above in accordance with their terms. 
  

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 (b) Within thirty (30) days following Executive’s termination of employment, the
Company shall reimburse Executive for unreimbursed reasonable and necessary out-of-pocket business, travel and entertainment expenses incurred by Executive in the performance of his duties and responsibilities during the Transition Period, subject
to the Company’s normal policies and procedures for expense verification and documentation. 
 (c) If Executive’s
employment is terminated due to Disability and Executive intends to continue his medical coverage under COBRA, for a one (1) year period following the date of Executive’s termination of employment, the Company shall reimburse Executive for
the cost of his monthly COBRA premium that is in excess of the active employee rate in order to provide continued group medical and dental benefits for Executive and/or his family under the plans and programs in which Executive and/or his family
participated immediately prior to Executive’s termination of employment; provided, that, Executive must timely elect COBRA coverage to the extent available under the Company’s health plans and timely pay the monthly premium
for such COBRA coverage. Any payment or reimbursement under this provision shall be payable on the first Company payroll date in each month following Executive’s termination of employment. 

Section 2.5 Withholding of Taxes. The Company may withhold from any benefits or compensation payable under this Agreement all
federal, state, city or other taxes as may be required pursuant to any law or governmental regulation or ruling. 

Section 2.6 Benefits. Upon the Termination Date (or any earlier termination of employment), Executive shall cease to be
eligible to participate in any of the Company’s employee benefit plans for the benefit of employees and officers, other than his right to elect continuation coverage under any group health plan. 

Section 2.7 No Other Payments. Executive acknowledges and agrees that the Company does not owe Executive any wages;
compensation; bonuses; deferred compensation; awards; sick pay; personal leave pay; notice pay; severance pay; vacation pay; expense reimbursement; payments, rights, or continued coverage under any medical or other benefit policy or plan or
qualified or non-qualified retirement plan; or any other forms of remuneration of any kind or nature, except as provided in this Agreement. 

ARTICLE III: RESTRICTIVE COVENANTS 

Section 3.1 Proprietary Information. Executive specifically agrees that Executive will not at any time, whether during
or subsequent to the Transition Period, in any fashion, form or manner, except in furtherance of Executive’s duties at the Company or with the specific written consent of the Company, either directly or indirectly use, divulge, disclose or
communicate to any person in any manner whatsoever, any confidential information or trade secrets of any kind, nature or description concerning any matters affecting or relating to the business of the Company (the “Proprietary
Information”), including (a) all information, design or software programs (including object codes and source codes), techniques, drawings, plans, experimental and research work, inventions, patterns, processes and know-how, whether or
not patentable, and 
  

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whether or not at a commercial stage related to the Company or any subsidiary thereof, (b) buying habits or practices of any of its customers or vendors, (c) the Company’s
marketing methods, sales activities, promotion, credit and financial data and related information, (d) the Company’s costs or sources of materials, (e) the prices it obtains or has obtained or at which it sells or has sold its
products or services, (f) lists or other written records used in the Company’s business, (g) compensation paid to employees and other terms of employment, or (h) any other confidential information of, about or concerning the
business of the Company, its manner of operation, or other confidential data of any kind, nature, or description (excluding any information that is or becomes publicly known or available for use through no fault of Executive or as directed by court
order). The Parties hereto stipulate that as between them, Proprietary Information constitutes trade secrets that derive independent economic value, actual or potential, from not being generally known to the public or to other persons who can obtain
economic value or cause economic harm to the Company from its disclosure or use and that Proprietary Information is the subject of efforts which are reasonable under the circumstances to maintain its secrecy and of which this Section 3.1
is an example, and that any breach of this Section 3.1 shall be a material breach of this Agreement. All Proprietary Information shall be and remain the Company’s sole property. 

Section 3.2 Restrictions on Solicitation Following Termination Date. 

(a) Executive acknowledges and agrees that the Company invested considerable resources to develop, service and maintain the Proprietary
Information defined above in Section 3.1. Executive agrees that the Company maintains such information on a confidential basis, and Executive agrees that such information constitutes trade secrets of the Company. Executive further
acknowledges and agrees that the Company has a legitimate interest in preventing the unauthorized disclosure of such information. 

(b) In addition, Executive acknowledges and agrees that information pertaining to agents, and employees of the Company is confidential,
that such information constitutes trade secrets of the Company and that the Company has a legitimate interest in preventing the unauthorized disclosure of confidential information and trade secrets relating to agents and employees. In
recognition of these facts, Executive agrees as follows: 
 (i) With respect to any person or entity who is or was a vendor or
business partner of the Company both during the Transition Period and for one year (365 days) following the Termination Date (or Executive’s earlier termination of employment), Executive will not, either directly or indirectly, use, reproduce,
or disclose to any other person or company any Proprietary Information, or any other trade secret or confidential information of the Company to solicit or induce or attempt to solicit or induce any person or entity to end or alter his or her
relationship with the Company. 
 (ii) During the Transition Period and for one year following the Termination Date (or
Executive’s earlier termination of employment), Executive will not directly or indirectly induce or attempt to induce any agent or employee of the Company to terminate his or her relationship with the Company or to contract or associate with a
competitor or potential competitor of the Company. Executive further agrees not to use, reproduce, or disclose to any 
  

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other person or company any Proprietary Information, or any other trade secret or confidential information of the Company that would enable or assist that person or company to solicit, attempt to
solicit, induce or otherwise cause any agent or employee of the Company to terminate his or her relationship with the Company or to contract or associate with a competitor or potential competitor of the Company. 

(iii) Executive acknowledges that he has carefully read and considered the provisions of Section 3.1 and having done so,
agrees that the restrictions set forth are fair and reasonably required for the protection of the Company’s trade secrets, and that adequate consideration has been provided for these promises. 

Section 3.3 Non-Competition. Executive acknowledges and recognizes the highly competitive nature of the business of
the Company and its affiliates and accordingly agrees as follows: During his employment, including the Transition Period, Executive will not, directly or indirectly, (a) engage in any business for Executive’s own account that competes with
the business of the Company or its affiliates (including, without limitation, businesses which the Company or its affiliates have specific plans to conduct in the future and as to which Executive is aware of such planning), (b) enter the employ
of, or render any services to, any person engaged in any business that competes with the business of the Company or its affiliates, (c) acquire a financial interest in any person engaged in any business that competes with the business of the
Company or its affiliates, directly or indirectly, as an individual, partner, stockholder, officer, director, principal, agent, trustee or consultant, or (d) interfere with business relationships (whether formed before or after the date of this
Agreement) between the Company or any of its affiliates and customers, suppliers, partners, members or investors of the Company or its affiliates. Without limiting the generality of the foregoing, Executive agrees that any designer, manufacturer,
wholesaler or retailer which designs, manufactures, markets or sells specialty apparel, clothing or accessories to primarily the age groups between fourteen (14) and thirty-five (35) and where such designer, manufacturer, wholesaler or
retailer operates a retail store within seventy-five (75) miles of any location of the Company or any subsidiary or affiliate, would be “in competition with the business of the Company” or its subsidiaries or affiliates.
Notwithstanding anything to the contrary in this Agreement, Executive may, directly or indirectly, own, solely as an investment, securities of any person engaged in the business of the Company or its affiliates which are publicly traded on a
national or regional stock exchange or on an over-the-counter market if Executive (i) is not a controlling person of, or a member of a group which controls, such person and (ii) does not, directly or indirectly, own five percent
(5%) or more of any class of securities of such person. 
 Section 3.4 Inventions. 

(a) Executive agrees to disclose promptly to the Company any and all concepts, designs, inventions, discoveries and improvements related
to the Company’s business that Executive may conceive, discover or make from the beginning of Executive’s employment with the Company until the termination thereof; whether such is made solely or jointly with others, whether or not
patentable, of which the conception or making involves the use of the Company’s time, facilities, equipment, personnel, supplies or trade secret information (collectively, “Inventions”). 

 

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 (b) Executive agrees to assign, and does hereby assign, to the Company (or its nominee)
Executive’s right, title and interest in and to any and all Inventions that Executive may conceive, discover or make, either solely or jointly with others, whether or not patentable, from the beginning of Executive’s employment with the
Company until the termination thereof (including, without limitation, the Transition Period) of which the conception or making involves the use of the Company’s time, facilities, equipment, personnel, supplies or trade secret information.

 (c) Executive agrees to sign at the request of the Company any instrument necessary for the filing and prosecution of patent
applications in the United States and elsewhere, including divisional, continuation, revival, renewal or reissue applications, covering any Inventions and all instruments necessary to vest title to such Inventions in the Company (or its nominee).
Executive further agrees to cooperate and assist the Company in preparing, filing and prosecuting any and all such patent applications and in pursuing or defending any litigation upon Inventions covered hereby. The Company shall bear all expenses
involved in the prosecution of such patent applications it desires to have filed. Executive agrees to sign at the request of the Company any and all instruments necessary to vest title in the Company (or its nominee) to any specific patent
application prepared by the Company and covering Inventions which Executive has agreed to assign to the Company (or its nominee) pursuant to Section 3.4(b) above. 

(d) The provisions of Sections 3.4(b) and 3.4(c) do not apply to any invention which qualifies fully under the provisions of
Section 2870 of the California Labor Code, which provides in substance that provisions in an employment agreement providing that an employee shall assign or offer to assign rights in an invention to his or her employer do not apply to an
invention for which no equipment, supplies, facilities, or trade secret information of the employer was used and which was developed entirely in the employee’s own time, except for those inventions that either (a) relate, at the time of
conception or reduction to practice of the invention: (i) to the business of the employer or (ii) to the employer’s actual or demonstrably anticipated research or development, or (b) result from any work performed by the employee
for the employer. 
 Section 3.5 Shop Rights. The Company shall also have a perpetual, royalty-free, non-exclusive
right to use in its business, and to make, use, license and sell products, processes and/or services derived from any inventions, discoveries, designs, improvements, concepts, ideas, works of authorship, whether or not patentable, including
processes, methods, formulae, techniques or know-how related thereto, that are not within the scope of “Inventions” as defined above, but which are conceived or made by Executive during regular working hours or with the Company’s
facilities, equipment, personnel, supplies or trade secret information. 
 Section 3.6 Injunctive Relief. Executive
acknowledges that any violation of any provision of Sections 3.1 through 3.5 and Sections 3.8 through 3.10 hereof by Executive will cause irreparable damage to the Company, that such damages will be incapable of precise measurement and that, as a
result, the Company will not have an adequate remedy at law to redress the harm which such violations will cause. Therefore, in the event of any violation or threatened violation of any provision of Sections 3.1 through 3.5 and Sections 3.8 through
3.10 by Executive, in addition to any other rights at law or in equity, Executive agrees that the Company will be entitled to seek injunctive relief including, but not limited to, temporary and/or

  

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permanent restraining orders to restrain any violation or threatened violation of such Sections by Executive. 

Section 3.7 Blue Pencil. It is the desire and intent of the Parties that the provisions of Section 3.1 through 3.5
hereof shall be enforced to the fullest extent permissible under the laws and public policies applied in each jurisdiction in which enforcement is sought. Accordingly, if any portion of Sections 3.1 through 3.5 shall be adjudicated to be invalid or
unenforceable, such provision shall be deemed amended either to conform to such restrictions as the court or arbitrator may allow, or to delete therefrom or reform the portion thus adjudicated to be invalid and unenforceable, such deletion or
reformation to apply only with respect to the operation of such Section in the particular jurisdiction in which such adjudication is made. It is expressly agreed that any court or arbitrator shall have the authority to modify any provision of
Sections 3.1 through 3.5 if necessary to render it enforceable, in such manner as to preserve as much as possible the Parties’ original intentions, as expressed therein, with respect to the scope thereof. 

Section 3.8 Copyright. Executive agrees that any work prepared by Executive for the Company that is eligible for copyright
protection under any U.S. or foreign law shall be a work made for hire and ownership of all copyrights (including all renewals and extensions therein) shall vest in the Company. In the event any such work prepared by Executive for the Company is
deemed not to be a work made for hire for any reason, Executive hereby irrevocably grants, transfers and assigns all right, title and interest in such work and all copyrights in such work and all renewals and extensions thereof to the Company, and
agrees to provide all assistance reasonably requested by the Company in the establishment, preservation and enforcement of its copyright in such work, such assistance to be provided at the Company’s expense, but without any additional
compensation to Executive. Executive agrees to and does hereby irrevocably waive all moral rights with respect to the work developed or produced hereunder, including any and all rights of identification of authorship and any and all rights of
approval, restriction or limitation on use or subsequent modifications. 
 Section 3.9 Company’s And
Executive’s Duties On Termination. Upon Executive’s termination of employment, Executive agrees to deliver promptly to the Company all Proprietary Information which is or has been in Executive’s possession or under
Executive’s control. Upon termination of Executive’s employment for any reason whatsoever and at any earlier time the Company so requests, Executive will deliver to the custody of the person designated by the Company all originals and
copies of such documents and other property of the Company in Executive’s possession, under Executive’s control or to which Executive may have access. 

Section 3.10 Non-Disparagement. During Executive’s employment (including the Transition Period), for any reason, neither
Executive nor his agents, on the one hand, nor the Company, or its senior executives (which for purposes of this Section 3.10 shall mean individuals with the title of Divisional President, Executive Vice President, Senior Vice President or
above) or the Board, on the other hand, shall directly or indirectly issue or communicate any public statement, or statement likely to become public, that maligns, denigrates or disparages the other (including, in the case of communications by
Executive or his agents, any of the Company’s officers, directors or employees). The foregoing shall not be violated by truthful responses to legal process or governmental inquiry or by private statements to any of the

  

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Company’s officers, directors or employees; provided, that, in the case of Executive, such statements are made in the course of carrying out his duties pursuant to this
Agreement. 
 ARTICLE IV. SURVIVAL OF CERTAIN PROVISIONS OF THE EMPLOYMENT AGREEMENT 

Section 4.1 Indemnification. Section 17 of the Employment Agreement shall continue to apply following the Employment
Agreement Expiration Date. 
 Section 4.2 Arbitration. Section 19 of the Employment Agreement shall continue to
apply following the Employment Agreement Expiration Date with respect to any dispute arising between the Company and Executive with respect to the performance or interpretation of this Agreement. 

ARTICLE V: RELEASE 

Section 5.1 Release of Claims by Executive. For the consideration set forth herein Executive, for himself, his heirs,
executors, administrators, successors and assigns (hereinafter collectively referred to as the “Releasors”), hereby fully releases (this “Release”) and discharges the Company, its parents, subsidiaries, affiliates,
insurers, successors, and assigns, and their respective officers, directors, officers, employees, and agents (all such persons, firms, corporations and entities being deemed beneficiaries hereof and are referred to herein as the “Company
Entities”) from any and all actions, causes of action, claims, obligations, costs, losses, liabilities, damages and demands of whatsoever character, whether or not known, suspected or claimed, which the Releasors have, from the beginning of
time through the Execution Date, against the Company Entities arising out of or in any way related to Executive’s employment or termination of his employment; provided, however, that this shall not be a release with respect to any
amounts and benefits owed to Executive pursuant to this Agreement upon termination of employment, employee benefit plans of the Company, or Executive’s right to indemnification as provided in Section 17 of the Employment Agreement and
Section 4.1 of this Agreement. 
 Section 5.2 Waiver of Rights Under Other Statutes. Executive understands that
this Release waives all claims and rights Executive may have under certain federal, state and local statutory and regulatory laws, as each may be amended from time to time, including but not limited to, the Age Discrimination in Employment Act
(including the Older Workers Benefit Protection Act) (“ADEA”), Title VII of the Civil Rights Act; the Employee Retirement Income Security Act of 1974 (“ERISA”); the Equal Pay Act; the Rehabilitation Act of 1973; the
Americans with Disabilities Act; the Worker Adjustment and Retraining Notification Act; the California Fair Employment and Housing Act, the California Family Rights Act, California law regarding Relocations, Terminations, and Mass Layoffs, the
California Labor Code; and all other statutes, regulations, common law, and other laws in any and all jurisdictions (including, but not limited to, California) that in any way relate to Executive’s employment or the termination of his
employment. 
 Section 5.3 Informed and Voluntary Signature. No promise or inducement has been made other than those
set forth in this Release. This Release is executed by Executive without 
  

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reliance on any representation by the Company or any of its agents. Executive states that he is fully competent to manage his business affairs and understands that he may be waiving legal rights
by signing this Release. Executive hereby acknowledges that he has carefully read this Release and has had the opportunity to thoroughly discuss the terms of this Release with legal counsel of his choosing. Executive hereby acknowledges that he
fully understands the terms of this Release and its final and binding effect and that he affixes his signature hereto voluntarily and of his own free will. 

Section 5.4 Waiver of Rights Under the Age Discrimination Act. Executive understands that this Release waives all of his
claims and rights under the ADEA. The waiver of Executive’s rights under the ADEA does not extend to claims or rights that might arise after the date this Release is executed. The monies to be paid to Executive are in addition to any sums to
which Executive would be entitled without signing this Release. For a period of seven (7) days following execution of this Release, Executive may revoke the terms of this Release by a written document received by the Chief Financial Officer of
the Company no later than 11:59 p.m. of the seventh day following Executive’s execution of this Release. This Release will not be effective until said revocation period has expired. Executive acknowledges that he has been given up to twenty-one
(21) days to decide whether to sign this Release. Executive has been advised to consult with an attorney prior to executing this Release and has been given a full and fair opportunity to do so. 

Section 5.5 Waiver Of Civil Code Section 1542. It is the intention of the parties in signing this Release that it should
be effective as a bar to each and every claim, demand and cause of action stated above. In furtherance of this intention, Executive hereby expressly waives any and all rights and benefits conferred upon Executive by the provisions of SECTION 1542 OF
THE CALIFORNIA CIVIL CODE and expressly consents that this Release shall be given full force and effect according to each and all of its express terms and provisions, including those relating to unknown and unsuspected claims, demands and causes of
action, if any, as well as those relating to any other claims, demands and causes of action referred to above. SECTION 1542 provides: 

“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF
EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.” 

Section 5.6 Unknown Claims. For the purpose of implementing a full, knowing and complete release and discharge of the
Releasees, Executive expressly acknowledges that this Release is intended to include in its effect, without limitation, all claims which Executive does not know or suspects to exist in his favor at the time of execution hereof, and that this
Agreement contemplates the extinguishment of any such claim or claims. 
  

 12 

 Section 5.7 Covenant Not to Sue. Executive represents that neither he nor any
person acting on his behalf has filed or caused to be filed any lawsuit, complaint, or charge against any of the Releasees in any court, any municipal, state or federal agency, or any other tribunal. Executive agrees that he will not, to the fullest
extent permitted by law, sue or file a charge, complaint, grievance or demand for arbitration in any forum pursuing any claim released under this Agreement or assist or otherwise participate in any claim, arbitration, suit, action, investigation or
other proceeding of any claim released hereunder. 
 Section 5.8 No Assignment of Released Claims. Executive
represents and warrants that he has not assigned or conveyed to any other person or entity any part of or interest in any of the claims released in this Agreement. Executive further expressly waives any claim to any monetary or other damages or any
other form of recovery in connection with any claim released in this Agreement or any proceeding that violates this Agreement. 

Section 5.9 Acknowledgement. Executive acknowledges and agrees that none of the Releasees owes him any wages, bonuses, equity
compensation, sick pay, personal leave pay, severance pay, vacation pay, or other compensation or payments, or continued coverage under any medical or other benefit policy or plan, qualified or non-qualified retirement benefits or forms of
remuneration of any kind or nature, other than as specifically provided in this Agreement. 
 ARTICLE VI: TAX TREATMENT. 

The Parties hereby agree that it is intended that all payments or benefits provided under this Agreement comply with or are exempt from
Section 409A and this Agreement shall be interpreted accordingly. Executive is hereby advised to seek independent advice from Executive’s personal tax advisor(s) with respect to the application of Section 409A to any payments or
benefits under this Agreement. Notwithstanding the foregoing, neither the Company nor any Releasee makes assurances with respect to the tax treatment of any payments or benefits under this Agreement, including without limitation under the Code,
federal, state or local laws, and no such party shall be liable for any failure to comply with such laws. 
 ARTICLE VII: MISCELLANEOUS

 Section 7.1 Notices. For purposes of this Agreement, notices and all other communications provided for herein
shall be in writing and shall be deemed to have been duly given when personally delivered, sent by facsimile or when mailed by United States registered or certified mail, return receipt requested, postage prepaid, addressed to such address as
provided in the signature pages hereto or sent to such other address or facsimile number as each party may furnish to the other in writing from time to time in accordance with this Section 7.1. 

Section 7.2 Applicable Law. This Agreement is entered into under, and shall be governed for all purposes by, the laws of the
State of California without giving effect to any choice of law principles. 
  

 13 

 Section 7.3 No Waiver. No failure by either Party hereto at any time to give
notice of any breach by the other Party of, or to require compliance with, any condition or provision of this Agreement shall (a) be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent
time or (b) preclude insistence upon strict compliance in the future. 
 Section 7.4 Severability. If any
provision of this Agreement is held by a court of competent jurisdiction to be illegal, void or unenforceable, such provision shall have no effect; however, the remaining provisions shall be enforced to the maximum extent possible. Further, if a
court should determine that any portion of this Agreement is overbroad or unreasonable, such provision shall be given effect to the maximum extent possible by narrowing or enforcing in part that aspect of the provision found overbroad or
unreasonable. 
 Section 7.5 Counterparts. This Agreement may be executed in one or more counterparts, each of which
shall be deemed to be an original, but all of which together will constitute one and the same Agreement. 
 Section 7.6
Headings. The paragraph headings have been inserted for purposes of convenience and shall not be used for interpretive purposes. 

Section 7.7 Gender and Plurals. Wherever the context so requires, the masculine gender includes the feminine or neuter, and
the singular number includes the plural and conversely. 
 Section 7.8 Affiliate. As used in this Agreement, unless
otherwise indicated, “affiliate” shall mean any person or entity which directly or indirectly through any one or more intermediaries owns or controls, is owned or controlled by, or is under common ownership or control with the Company.

 Section 7.9 No Admission. This Agreement is not intended, and shall not be construed, as an admission that any of
the Parties has violated any federal, state or local law (statutory or decisional), ordinance or regulation, breached any contract or committed any wrong whatsoever. Should any provision of this Agreement require interpretation or construction, it
is agreed by the parties that the entity interpreting or construing this Agreement shall not apply a presumption against one party by reason of the rule of construction that a document is to be construed more strictly against the party who prepared
the document. 
 Section 7.10 Section 409A. 

(a) Notwithstanding anything herein to the contrary, this Agreement is intended to be interpreted and applied so that the payments and
benefits set forth herein either shall either be exempt from the requirements of Section 409A, or shall comply with the requirements of Section 409A, and, accordingly, to the maximum extent permitted, this Agreement shall be interpreted to
be exempt from or in compliance with Section 409A. 
 (b) To the extent that the Company determines that any provision of
this 
  

 14 

 
Agreement would cause Executive to incur any additional tax or interest under Section 409A, the Company shall be entitled to reform such provision to attempt to comply with or be exempt from
Section 409A through good faith modifications. 
 (c) Each payment under this Agreement or otherwise (including any
installment payments) shall be treated as a separate payment for purposes of Section 409A. 
 (d) To the extent necessary
to avoid imposition of any additional tax or interest penalties under Section 409A (such tax and interest penalties, a “Section 409A Tax”), notwithstanding the timing of payment provided in any other section of this Agreement,
the timing of any payment, distribution or benefit pursuant to this Agreement shall be subject to a six-month delay in a manner consistent with Section 409A(a)(2)(B)(i) (and, in the case of installment payments, the first payment shall be a
lump sum equal to the amount Executive would have received during such six-month period if no such payment delay had been imposed). 

(e) To the extent necessary under Section 409A, any payments that are due hereunder in connection with Executive’s termination
of employment shall only be payable to the extent that such termination of employment constitutes a “separation from service” within the meaning of Section 409A. 

(f) All expenses or other reimbursements paid pursuant to this Agreement that are taxable income to Executive shall in no event be paid
later than the end of the calendar year next following the calendar year in which Executive incurs such expense or pays such related tax. With regard to any provision herein that provides for reimbursement of costs and expenses or in-kind benefits,
except as permitted by Section 409A, (i) the right to reimbursement or in-kind benefits shall not be subject to liquidation or exchange for another benefit, (ii) the amount of expenses eligible for reimbursement, or in-kind benefits,
provided during any taxable year shall not affect the expenses eligible for reimbursement, or in-kind benefits to be provided, in any other taxable year, and (iii) such payments shall be made on or before the last day of Executive’s
taxable year following the taxable year in which the expense was incurred. 
 Section 7.11 Successors; Binding
Agreement. 
 (a) Company’s Successors. This Agreement shall be binding upon and shall inure to the benefit of
the Company and its successors and assigns. 
 (b) Executive’s Successors. No rights or obligations of Executive
under this Agreement may be assigned or transferred by Executive other than his rights to payments or benefits hereunder, which may be transferred only by will or the laws of descent and distribution. Upon Executive’s death, this Agreement and
all rights of Executive hereunder shall inure to the benefit of and be enforceable by Executive’s beneficiary or beneficiaries, personal or legal representatives, or estate, to the extent any such person succeeds to Executive’s interests
under this Agreement. Executive shall be entitled to select and change a beneficiary or beneficiaries to receive any benefit or compensation payable hereunder following Executive’s death by giving the Company written notice thereof. In the
event of Executive’s death or a judicial determination of his incompetence, reference in this Agreement to Executive shall be deemed, where appropriate, 

 

 15 

 
to refer to his beneficiary(ies), estate or other legal representative(s). 

Section 7.12 Entire Agreement. Except as otherwise specifically provided herein, this Agreement constitutes the entire
agreement of the Parties with regard to the subject matter hereof, contains all the covenants, promises, representations, warranties and agreements between the Parties with respect to Executive’s employment during the Transition Period. Except
as otherwise provided herein, each party to this Agreement acknowledges that no representation, inducement, promise or agreement, oral or written, has been made by either party, or by anyone acting on behalf of either party, which is not embodied
herein, and that no agreement, statement, or promise relating to Executive’s resignation from the Company, that is not contained in this Agreement, shall be valid or binding. Any modification of this Agreement will be effective only if it is in
writing and signed by the Parties. 
 Section 7.13 Third-Party Beneficiaries. The Releasees are intended third-party
beneficiaries to the release contained herein. 
 Section 7.14 Counterparts. This Agreement may be executed in
separate counterparts (including by means of facsimile and/or pdf), each of which is deemed to be an original and all of which taken together constitute one and the same agreement. 

Section 7.15 Survival. The terms of this Agreement shall survive Executive’s cessation of service hereunder to the
extent necessary to effectuate the intent thereof. 
  

 16 

 BY SIGNING BELOW, EXECUTIVE REPRESENTS AND WARRANTS THAT HE HAS CAREFULLY READ AND FULLY UNDERSTANDS THE
PROVISIONS OF THIS AGREEMENT AND HE HAS HAD AN OPPORTUNITY TO CONSULT WITH LEGAL COUNSEL. HE SIGNS HIS NAME VOLUNTARILY AND WITH A FULL UNDERSTANDING OF ITS LEGAL CONSEQUENCES. EXECUTIVE HEREBY ACCEPTS AND AGREES TO ALL OF THE TERMS OF THIS
AGREEMENT KNOWINGLY AND VOLUNTARILY. 
 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date
first written above. 
  

			
	THE WET SEAL, INC.
		
	By:	 	 /s/ Steven H. Benrubi

		 	Name:  Steven H. Benrubi
		 	Title:  Executive Vice President and Chief Financial Officer
	
	 /s/ Edmond S. Thomas

	Edmond S. Thomas

  

 17 

 ANNEX A 

RELEASE 

1. Expiration of Employment Agreement; Entry into Transition Agreement. Edmond S. Thomas (“Executive”)
acknowledges that his employment agreement dated as of September 6, 2007 (the “Employment Agreement”) with The Wet Seal, Inc. (the “Company”) will expire on October 8, 2010. Executive acknowledges that he
has entered into a transition agreement and release (the “Agreement”) with the Company, dated as of August 30, 2010 and effective as of October 9, 2010 (the “Effective Date”), subject to the terms and
conditions set forth in the Agreement. 
 2. Release of Claims by Executive. For the consideration set forth in the
Agreement, Executive, for himself, his heirs, executors, administrators, successors and assigns (hereinafter collectively referred to as the “Releasors”), hereby fully releases and discharges the Company, its parents, subsidiaries,
affiliates, insurers, successors, and assigns, and their respective officers, directors, officers, employees, and agents (all such persons, firms, corporations and entities being deemed beneficiaries hereof and are referred to herein as the
“Company Entities”) from any and all actions, causes of action, claims, obligations, costs, losses, liabilities, damages and demands of whatsoever character, whether or not known, suspected or claimed, which the Releasors have, from
the beginning of time through the Effective Date, against the Company Entities arising out of or in any way related to Executive’s employment or termination of his employment; provided, however, that this shall not be a release
with respect to any amounts and benefits owed to Executive pursuant to this Agreement upon termination of employment, employee benefit plans of the Company, or Executive’s right to indemnification as provided in Section 17 of the
Employment Agreement. 
 3. Waiver of Rights Under Other Statutes. Executive understands that this Release waives all
claims and rights Executive may have under certain federal, state and local statutory and regulatory laws, as each may be amended from time to time, including but not limited to, the Age Discrimination in Employment Act (including the Older Workers
Benefit Protection Act) (“ADEA”), Title VII of the Civil Rights Act; the Employee Retirement Income Security Act of 1974 (“ERISA”); the Equal Pay Act; the Rehabilitation Act of 1973; the Americans with Disabilities
Act; the Worker Adjustment and Retraining Notification Act; the California Fair Employment and Housing Act, the California Family Rights Act, California law regarding Relocations, Terminations, and Mass Layoffs, the California Labor Code; and all
other statutes, regulations, common law, and other laws in any and all jurisdictions (including, but not limited to, California) that in any way relate to Executive’s employment or the termination of his employment. 

4. Informed and Voluntary Signature. No promise or inducement has been made other than those set forth in this Release. This
Release is executed by Executive without reliance on any representation by the Company or any of its agents. Executive states that he is fully competent to manage his business affairs and understands that he may be waiving legal rights by signing
this Release. Executive hereby acknowledges that he has carefully read this Release and has had the opportunity to thoroughly discuss the terms of this Release with legal counsel of his 

 
choosing. Executive hereby acknowledges that he fully understands the terms of this Release and its final and binding effect and that he affixes his signature hereto voluntarily and of his own
free will. 
 5. Waiver of Rights Under the Age Discrimination Act. Executive understands that this Release waives all of
his claims and rights under the ADEA. The waiver of Executive’s rights under the ADEA does not extend to claims or rights that might arise after the date this Release is executed. The monies to be paid to Executive are in addition to any sums
to which Executive would be entitled without signing this Release. For a period of seven (7) days following execution of this Release, Executive may revoke the terms of this Release by a written document received by the Chief Financial Officer
of the Company no later than 11:59 p.m. of the seventh day following Executive’s execution of this Release. The Release will not be effective until said revocation period has expired. Executive acknowledges that he has been given up to
twenty-one (21) days to decide whether to sign this Release. Executive has been advised to consult with an attorney prior to executing this Release and has been given a full and fair opportunity to do so. 

6. Waiver Of Civil Code Section 1542. It is the intention of the parties in signing this Release that it should be effective
as a bar to each and every claim, demand and cause of action stated above. In furtherance of this intention, Executive hereby expressly waives any and all rights and benefits conferred upon Executive by the provisions of SECTION 1542 OF THE
CALIFORNIA CIVIL CODE and expressly consents that this Release shall be given full force and effect according to each and all of its express terms and provisions, including those relating to unknown and unsuspected claims, demands and causes of
action, if any, as well as those relating to any other claims, demands and causes of action referred to above. SECTION 1542 provides: 

“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF
EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.” 

7. Unknown Claims. For the purpose of implementing a full, knowing and complete release and discharge of the Releasees, Executive
expressly acknowledges that this Release is intended to include in its effect, without limitation, all claims which Executive does not know or suspects to exist in his favor at the time of execution hereof, and that this Agreement contemplates the
extinguishment of any such claim or claims. 
 8. Covenant Not to Sue. Executive represents that neither he nor any
person acting on his behalf has filed or caused to be filed any lawsuit, complaint, or charge against any of the Releasees in any court, any municipal, state or federal agency, or any other tribunal. Executive agrees that he will not, to the fullest
extent permitted by law, sue or file a charge, complaint, grievance or demand for arbitration in any forum pursuing any claim released under this Agreement or assist or otherwise participate in any claim, arbitration, suit, action, investigation

  

 19 

 
or other proceeding of any claim released hereunder. 
 9. No
Assignment of Released Claims. Executive represents and warrants that he has not assigned or conveyed to any other person or entity any part of or interest in any of the claims released in this Agreement. Executive further expressly waives any
claim to any monetary or other damages or any other form of recovery in connection with any claim released in this Agreement or any proceeding that violates this Agreement. 

10. Acknowledgement. Executive acknowledges and agrees that none of the Releasees owes him any wages, bonuses, equity
compensation, sick pay, personal leave pay, severance pay, vacation pay, or other compensation or payments, or continued coverage under any medical or other benefit policy or plan, qualified or non-qualified retirement benefits or forms of
remuneration of any kind or nature, other than as specifically provided in this Agreement. 
 11. Miscellaneous.

 (a) This Release shall be governed in all respects by the laws of the State of California without regard to the principles of
conflict of law. 
 (b) In the event that any one or more of the provisions of this Release is held to be invalid, illegal or
unenforceable, the validity, legality and enforceability of the remaining provisions will not in any way be affected or impaired thereby. Moreover, if any one or more of the provisions contained in this Release is held to be excessively broad as to
duration, scope, activity or subject, such provisions will be construed by limiting and reducing them so as to be enforceable to the maximum extent compatible with applicable law. 

(c) This Release may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall
constitute one and the same instrument. 
 (d) The paragraph headings used in this Release are included solely for convenience
and shall not affect or be used in connection with the interpretation of this Release. 
 (e) This Release and the Agreement
represent the entire agreement between the parties with respect to the subject matter hereto and may not be amended except in a writing signed by the Company and Executive. If any dispute should arise under this Release, it shall be settled in
accordance with the terms of Section 19 of the Employment Agreement. 
 (f) This Release shall be binding on the executors,
heirs, administrators, successors and assigns of Executive and the successors and assigns of Company and shall inure to the benefit of the respective executors, heirs, administrators, successors and assigns of the Company Entities and the Releasors.

  

 20 

 BY SIGNING BELOW, EXECUTIVE REPRESENTS AND WARRANTS THAT HE HAS CAREFULLY READ AND FULLY UNDERSTAND THE
PROVISIONS OF THIS RELEASE AND HE HAS HAD AN OPPORTUNITY TO CONSULT WITH LEGAL COUNSEL. HE SIGNS HIS NAME VOLUNTARILY AND WITH A FULL UNDERSTANDING OF ITS LEGAL CONSEQUENCES. EXECUTIVE HEREBY ACCEPTS AND AGREES TO ALL OF THE TERMS OF THIS RELEASE
KNOWINGLY AND VOLUNTARILY. 
 IN WITNESS WHEREOF, Executive hereby executes this Release as of the Effective Date. 

 

	
	EXECUTIVE
	
	  

	Edmond S. Thomas

  

 21 

 ANNEX B 

RELEASE 

1. Termination of Employment. Edmond S. Thomas (“Executive”) acknowledges that his last day of employment with
The Wet Seal, Inc. and any of its affiliates (the “Company”) is
                             (the “Termination Date”). 

2. Release of Claims by Executive. For the consideration set forth in the Agreement, Executive, for himself, his heirs, executors,
administrators, successors and assigns (hereinafter collectively referred to as the “Releasors”), hereby fully releases and discharges the Company, its parents, subsidiaries, affiliates, insurers, successors, and assigns, and their
respective officers, directors, officers, employees, and agents (all such persons, firms, corporations and entities being deemed beneficiaries hereof and are referred to herein as the “Company Entities”) from any and all actions,
causes of action, claims, obligations, costs, losses, liabilities, damages and demands of whatsoever character, whether or not known, suspected or claimed, which the Releasors have, from the beginning of time through the Termination Date, against
the Company Entities arising out of or in any way related to Executive’s employment or termination of his employment; provided, however, that this shall not be a release with respect to any amounts and benefits owed to Executive
pursuant to this Agreement upon termination of employment, employee benefit plans of the Company, or Executive’s right to indemnification as provided in Section 17 of the Employment Agreement. 

3. Waiver of Rights Under Other Statutes. Executive understands that this Release waives all claims and rights Executive may have
under certain federal, state and local statutory and regulatory laws, as each may be amended from time to time, including but not limited to, the Age Discrimination in Employment Act (including the Older Workers Benefit Protection Act)
(“ADEA”), Title VII of the Civil Rights Act; the Employee Retirement Income Security Act of 1974 (“ERISA”); the Equal Pay Act; the Rehabilitation Act of 1973; the Americans with Disabilities Act; the Worker
Adjustment and Retraining Notification Act; the California Fair Employment and Housing Act, the California Family Rights Act, California law regarding Relocations, Terminations, and Mass Layoffs, the California Labor Code; and all other statutes,
regulations, common law, and other laws in any and all jurisdictions (including, but not limited to, California) that in any way relate to Executive’s employment or the termination of his employment. 

4. Informed and Voluntary Signature. No promise or inducement has been made other than those set forth in this Release. This
Release is executed by Executive without reliance on any representation by the Company or any of its agents. Executive states that he is fully competent to manage his business affairs and understands that he may be waiving legal rights by signing
this Release. Executive hereby acknowledges that he has carefully read this Release and has had the opportunity to thoroughly discuss the terms of this Release with legal counsel of his choosing. Executive hereby acknowledges that he fully
understands the terms of this Release and its final and binding effect and that he affixes his signature hereto voluntarily and of his own free will. 
  

 22 

 5. Waiver of Rights Under the Age Discrimination Act. Executive understands that this
Release waives all of his claims and rights under the ADEA. The waiver of Executive’s rights under the ADEA does not extend to claims or rights that might arise after the date this Release is executed. The monies to be paid to Executive are in
addition to any sums to which Executive would be entitled without signing this Release. For a period of seven (7) days following execution of this Release, Executive may revoke the terms of this Release by a written document received by the
Chief Financial Officer of the Company no later than 11:59 p.m. of the seventh day following Executive’s execution of this Release. The Release will not be effective until said revocation period has expired. Executive acknowledges that he has
been given up to twenty-one (21) days to decide whether to sign this Release. Executive has been advised to consult with an attorney prior to executing this Release and has been given a full and fair opportunity to do so. 

6. Waiver Of Civil Code Section 1542. It is the intention of the parties in signing this Release that it should be effective
as a bar to each and every claim, demand and cause of action stated above. In furtherance of this intention, Executive hereby expressly waives any and all rights and benefits conferred upon Executive by the provisions of SECTION 1542 OF THE
CALIFORNIA CIVIL CODE and expressly consents that this Release shall be given full force and effect according to each and all of its express terms and provisions, including those relating to unknown and unsuspected claims, demands and causes of
action, if any, as well as those relating to any other claims, demands and causes of action referred to above. SECTION 1542 provides: 

“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF
EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.” 

7. Unknown Claims. For the purpose of implementing a full, knowing and complete release and discharge of the Releasees, Executive
expressly acknowledges that this Release is intended to include in its effect, without limitation, all claims which Executive does not know or suspects to exist in his favor at the time of execution hereof, and that this Agreement contemplates the
extinguishment of any such claim or claims. 
 8. Covenant Not to Sue. Executive represents that neither he nor any
person acting on his behalf has filed or caused to be filed any lawsuit, complaint, or charge against any of the Releasees in any court, any municipal, state or federal agency, or any other tribunal. Executive agrees that he will not, to the fullest
extent permitted by law, sue or file a charge, complaint, grievance or demand for arbitration in any forum pursuing any claim released under this Agreement or assist or otherwise participate in any claim, arbitration, suit, action, investigation or
other proceeding of any claim released hereunder. 
  

 23 

 9. No Assignment of Released Claims. Executive represents and warrants that he has
not assigned or conveyed to any other person or entity any part of or interest in any of the claims released in this Agreement. Executive further expressly waives any claim to any monetary or other damages or any other form of recovery in connection
with any claim released in this Agreement or any proceeding that violates this Agreement. 
 10. Acknowledgement.
Executive acknowledges and agrees that none of the Releasees owes him any wages, bonuses, equity compensation, sick pay, personal leave pay, severance pay, vacation pay, or other compensation or payments, or continued coverage under any medical or
other benefit policy or plan, qualified or non-qualified retirement benefits or forms of remuneration of any kind or nature, other than as specifically provided in this Agreement. 

11. Miscellaneous. 

(a) This Release shall be governed in all respects by the laws of the State of California without regard to the principles of conflict of
law. 
 (b) In the event that any one or more of the provisions of this Release is held to be invalid, illegal or unenforceable,
the validity, legality and enforceability of the remaining provisions will not in any way be affected or impaired thereby. Moreover, if any one or more of the provisions contained in this Release is held to be excessively broad as to duration,
scope, activity or subject, such provisions will be construed by limiting and reducing them so as to be enforceable to the maximum extent compatible with applicable law. 

(c) This Release may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall
constitute one and the same instrument. 
 (d) The paragraph headings used in this Release are included solely for convenience
and shall not affect or be used in connection with the interpretation of this Release. 
 (e) This Release and the Transition
Agreement represent the entire agreement between the parties with respect to the subject matter hereto and may not be amended except in a writing signed by the Company and Executive. If any dispute should arise under this Release, it shall be
settled in accordance with the terms of Section 19 of the Employment Agreement. 
 (f) This Release shall be binding on the
executors, heirs, administrators, successors and assigns of Executive and the successors and assigns of Company and shall inure to the benefit of the respective executors, heirs, administrators, successors and assigns of the Company Entities and the
Releasors. 
  

 24 

 BY SIGNING BELOW, EXECUTIVE REPRESENTS AND WARRANTS THAT HE HAS CAREFULLY READ AND FULLY UNDERSTAND THE
PROVISIONS OF THIS RELEASE AND HE HAS HAD AN OPPORTUNITY TO CONSULT WITH LEGAL COUNSEL. HE SIGNS HIS NAME VOLUNTARILY AND WITH A FULL UNDERSTANDING OF ITS LEGAL CONSEQUENCES. EXECUTIVE HEREBY ACCEPTS AND AGREES TO ALL OF THE TERMS OF THIS RELEASE
KNOWINGLY AND VOLUNTARILY. 
 IN WITNESS WHEREOF, Executive hereby executes this Release as of the Termination Date. 

 

	
	EXECUTIVE
	
	  

	Edmond S. Thomas

  

 25Employment Agreement between the Company and Jon C. Kubo

 Exhibit 10.2 

EMPLOYMENT AGREEMENT 

THIS EMPLOYMENT AGREEMENT (“Agreement”) by and between The Wet Seal, Inc., a Delaware corporation (the
“Company”), and Jon C. Kubo (“Executive”) (collectively, the “Parties”) is entered into as of August 26, 2010. 

W I T N E S S E T H: 

WHEREAS, Executive is currently employed by the Company as Vice President and Chief Information Officer; 

WHEREAS, the Company desires to promote and continue to employ Executive as Senior Vice President E Commerce and Chief Information
Officer of the Company, and Executive desires to be so promoted and continuously employed; and 
 WHEREAS, the Company
and Executive (collectively, the “Parties”) desire their employment relationship to be governed by the terms set forth below. 

NOW THEREFORE, in consideration of the premises and the respective covenants and agreements of the Parties set forth below, and
intending to be legally bound hereby, the Parties agree as follows: 
 1. EMPLOYMENT 

The Company hereby continues to employ Executive and Executive hereby accepts such continued employment upon the terms and conditions set
forth below. 
 2. TERM 

The term of this Agreement shall begin on the date first set forth above (the “Effective Date”) and end on the third
anniversary of the Effective Date (the “Term”). The Term may be sooner terminated by either party in accordance with the provisions of Section 5. 

3. COMPENSATION 
 3.1
Base Compensation. For the services to be rendered by Executive under this Agreement, Executive shall be entitled to receive, commencing as of the Effective Date, salary at the annual rate of Three Hundred Forty Thousand Dollars ($340,000)
(“Base Compensation”) payable in twenty-six (26) substantially equal installments per year, less all applicable tax withholdings by the Company. The Base Compensation shall be payable in accordance with the Company’s
customary payroll practices. The Compensation Committee of the Board of Directors of the Company (the “Committee”) shall review Executive’s Base Compensation annually and may make adjustments to increase but not decrease
such Base Compensation, in accordance with the compensation practices and guidelines of the Company. 
 3.2 Bonuses.

 (a) Subject to the achievement of performance objectives pre-determined by the Committee, Executive shall be eligible to
receive annual bonus compensation targeted at forty percent (40%) of Base Compensation, a portion of which shall be based on the Spring 

 
operating income results for the Company as a whole and the remaining portion shall be based on the Fall operating income results for the Company as a whole (each a “Seasonal
Bonus”). The maximum annual bonus compensation opportunity shall be provided in the Company’s incentive plan. In order to earn a Seasonal Bonus, Executive must be employed on the date the Company pays the applicable Seasonal Bonus. Any
Fall bonus under this provision shall be paid no later than the fifteenth (15th) day of the third month following the end of the fiscal year for which it is earned and any Spring bonus earned hereunder shall be paid in the third quarter of such
fiscal year. Prior to the commencement of any Seasonal Bonus period, the Company reserves the right to change the operating metric(s) for purposes of measuring the Seasonal Bonus earned. 

(b) The Committee may in its sole discretion replace this Seasonal Bonus program with an annual bonus program under which such annual
bonus shall be based on the achievement of annual metrics established by the Company each fiscal year (such metrics to be determined as late as seventy-five (75) days following the beginning of each applicable fiscal year). In order to earn
this annual bonus, Executive must be employed on the date the Company pays such annual bonus and any annual bonus so earned shall be paid no later than the fifteenth (15th) day of the third month following the end of the fiscal year for which
it is earned and following certification by the Committee of the achievement of the applicable performance metrics and the amount of the annual bonus to be paid to Executive for the applicable fiscal year. 

(c) The Company will pay Executive a promotion bonus of $50,000 (the “Promotion Bonus”), payable in cash in two
installments as follows: (i) $25,000 on the Effective Date, and (ii) $25,000 on the first anniversary of the Effective Date, provided that, Executive is employed by the Company on each such payment date and has not tendered notice of his
resignation. If Executive (i) is terminated for Cause, (ii) resigns without Good Reason, or (iii) evidences his intent to resign by tendering his resignation, prior to the third anniversary of the Effective Date, Executive shall repay
the Company, within 10 days following such termination event, an amount of the Promotion Bonus (not to exceed the Promotion Bonus paid to Executive) equal to the product of (x) and (y), where (x) is equal to the amount of the Promotion
Bonus paid to Executive as of the termination date, and (y) is a fraction, the numerator of which is the number of days remaining until the third anniversary of the Effective Date and the denominator of which is 1,095. 

3.3 Options. Pursuant to and subject to the terms of The Wet Seal Inc. 2005 Stock Incentive Plan, as amended and/or restated from
time to time (the “Plan”), on the Effective Date, Executive was awarded an option to purchase 75,000 shares of Class A common stock of the Company (“Common Stock”) in accordance with the stock option agreement
attached hereto as Exhibit B (the “Stock Option Agreement”). 
 3.4 Benefits. Executive shall be
entitled to participate in all pension and welfare benefit, medical, dental, vision, life insurance, disability and any other benefit or insurance plans established by the Company and made available to other executives at his level, in accordance
with the terms of such plans as they may be in effect from time to time. 
 3.5 Vacation. During the Term, Executive
shall be entitled to four (4) weeks of paid vacation per year to be used and accrued in accordance with the Company’s policy, as it may be established from time to time. 

 3.6 Expense Reimbursement. Executive shall be reimbursed for reasonable business
expenses actually incurred, in accordance with the Company’s expense reimbursement policy, as it may be in effect during the Term. 
 4.
POSITION AND DUTIES 
 4.1 Position. Executive shall serve as Senior Vice President E Commerce and Chief
Information Officer of the Company and report to the Chief Executive Officer of the Company (“CEO”). Executive shall perform duties consistent with his title and position and any other reasonable duties determined by the CEO. If
requested by the Board of Directors of the Company (the “Board”), Executive shall serve as an officer and/or director of any of the Company’s affiliates or subsidiaries for no additional consideration. 

4.2 Duties; Devotion of Time and Effort. Executive shall use Executive’s good faith best efforts and judgment (a) in
performing Executive’s duties required hereunder and (b) to act in the best interests of the Company. Executive shall devote such time, attention and energies to the business of the Company as are reasonably necessary to satisfy
Executive’s required responsibilities and duties hereunder. Executive shall perform the duties assigned to him to the best of Executive’s ability and in the best interests of the Company. 

4.3 Compliance with Policies. Executive shall observe all Company’s policies and all reasonable rules and regulations adopted
by the Company in connection with the conduct of its business, and shall render services in a competent, conscientious and professional manner and as instructed by the Company in all matters. 

4.4 Officer of the Company. Executive’s position is considered a 16(b) position. Executive will be an “officer” of
the Company and accountable for fiscal and fiduciary responsibilities associated with such position. 
 5. TERMINATION 

5.1 Due to Death or Disability. If Executive dies during the Term, Executive’s employment and this Agreement shall terminate
as of the date of his death. The Company may terminate Executive due to Executive’s “Disability” (as defined below) at any time following the Effective Date, upon written notice to Executive. For purposes of this Agreement, the term
“Disability” shall mean a physical or mental incapacity as a result of which Executive becomes unable to continue the proper performance of Executive’s duties hereunder for six (6) consecutive calendar months or for
shorter periods aggregating one hundred eighty (180) business days in any twelve (12) month period, or, if this provision is inconsistent with any applicable law, for such period or periods as permitted by law. 

5.2 By the Company Without “Cause”. The Company may terminate Executive’s employment without “Cause” (as
hereinafter defined) at any time following the Effective Date, upon written notice to Executive, subject to compliance by the Company with the provisions of Section 5.6 hereof. 

 5.3 By the Company for Cause. The Company may terminate Executive’s employment
for “Cause” at any time. For purposes of this Agreement, the term “Cause” shall mean: 
 (a)
Executive’s conviction of, or plea of nolo contendere to, any felony or any crime involving the Company; 
 (b)
Executive’s commission of any act of theft, embezzlement or misappropriation against the Company; 
 (c) The gross neglect,
malfeasance or nonfeasance of Executive in the performance of the services contemplated hereunder, when such conduct causes or has the likelihood of causing material economic harm to the Company; 

(d) A material breach of this Agreement by Executive; 

(e) Any willful misconduct or unethical behavior related to Executive’s duties hereunder or insubordination by Executive;

 (f) The sexual or other harassment by Executive of any employee, independent contractor or customer of the Company; and/or

 (g) Executive’s use of illegal drugs or abuse of alcohol or legally prescribed drugs. 

5.4 By Executive For Good Reason. Executive may terminate his employment for Good Reason (as defined below). In the event
Executive seeks to terminate his employment for Good Reason, Executive shall provide thirty (30) days written notice to the Company setting forth Executive’s intention to terminate his employment with the Company. The Company shall have
the opportunity to cure the “Good Reason” within thirty (30) days of the Company’s receipt of the written notice from Executive. For purposes of this Agreement, “Good Reason” shall mean relocating
Executive’s place of work, or the executive offices of the Company, to a location more than fifty (50) miles from the site of the Company’s offices as of the Effective Date. Executive must provide notice of his intention to terminate
his employment for Good Reason within sixty (60) days following the occurrence of the grounds constituting Good Reason. If Executive fails to provide such timely notice, Executive shall waive his right to terminate his employment for Good
Reason based on such particular grounds. 
 5.5 By Executive Without Good Reason. Executive may voluntarily terminate his
employment without Good Reason at any time following the Effective Date upon sixty (60) days written notice to the Company. 

5.6 Termination Payment. 

(a) Amount. 

(i) In the event that Executive’s employment is terminated pursuant to Sections 5.1 through 5.5, Executive shall
continue to render services to the Company pursuant to this Agreement until the date of termination (“Termination  

 
Date”) and shall continue to receive compensation and payment for any unreimbursed expenses incurred, accrued but unpaid Base Compensation and other accrued employee benefits as
provided in this Agreement, through the Termination Date. In addition, in the event Executive’s employment is terminated without “Cause” pursuant to Section 5.2, or Executive terminates his employment for “Good Reason”
pursuant to Section 5.4, in each case within the first three years of the Effective Date, and subject to Section 5.6 (c) Executive shall receive severance pay in an amount equal to fifty percent (50%) of Executive’s Base
Compensation, in equal bimonthly installments paid over a period of six (6) months (the “Severance Period”) with the first installment to be paid on the later of the Company’s first regular pay date after the Termination
Date or the tenth (10th) day after Executive’s execution of the release described in Section 5.6(c). Each installment of the severance pay shall be deemed a separate payment for the purposes of Section 409A of the Internal
Revenue Code of 1986, as amended (the “Code”). Notwithstanding the foregoing, if all or any portion of the severance payments due under this Section 5.6(a) are determined to be “nonqualified deferred compensation”
subject to Section 409A of the Code, and the Company determines that Executive is a “specified employee” as defined in Section 409A(a)(2)(B)(i) of the Code and the regulations and other guidance issued thereunder, then such
severance payments (or portion thereof) shall commence no earlier than the first day of the seventh month following the month in which Executive’s termination of employment occurs (with the first such payment being a lump sum equal to the
aggregate severance payments Executive would have received during such six-month period if no such payment delay had been imposed). For purposes of this Section 5.6(a)(i), “termination of employment” shall mean Executive’s
“separation from service” as defined in Section 1.409A-1(h) of the Final Treasury Regulations promulgated under Section 409A of the Code, including the default presumptions thereof. 

(ii) If Executive is terminated (x) without Cause on or after the third anniversary of the Effective Date or
(y) for Cause, then Executive shall not receive any severance payments and shall only be entitled to the payments identified in the first sentence of Section 5.6(a)(i). 

(iii) Except as provided in this Section 5.6, Executive shall not be entitled to any other payments in connection
with his employment and/or the termination thereof, and shall have no further right to receive compensation or other consideration from the Company or have any other remedy whatsoever against the Company, as a result of the termination of this
Agreement or the termination of Executive. In no way do payments under this clause (a) include any unearned, ineligible bonus compensation. 

(b) Benefits. In the event Executive’s employment is terminated without “Cause” pursuant to Section 5.2, or
Executive terminates his employment for “Good Reason” pursuant to Section 5.4, the Executive may timely elect to continue healthcare coverage through COBRA at Executive’s expense. 

 (c) Release. Notwithstanding any other provision of this
Agreement to the contrary, Executive acknowledges and agrees that any and all severance payments to which Executive is entitled under this Section 5.6 are conditional upon, and subject to, Executive first executing a valid waiver and release of
all claims that Executive may have against the Company, its subsidiaries and affiliates (and their respective officers and directors) in a form substantially similar to that attached hereto as Exhibit A, subject to changes as may be warranted
to be made to such release to preserve the intent thereof for changes in applicable laws; provided, that, if Executive fails to execute (or revokes) such waiver and release of all claims within 30 days following the Termination Date, the
Company shall have no obligation to provide the payments contemplated under this Section 5.6. To the extent that the Executive’s Termination Date occurs on or after
November 15th of a calendar year, the Release to the
extent executed and returned in accordance with this subparagraph shall be deemed, for purposes of the payment timing provisions of this Section 5, to have been executed and returned to the Company on
January 1st of the calendar year succeeding the
Termination Date. 
 (d) Mitigation. Executive acknowledges and agrees that any and all severance payments to which
Executive is entitled under this Section 5.6 shall be reduced, on a dollar for dollar basis, by any compensation paid to Executive during the Severance Period by another recipient of Executive’s services, whether as an employee, consultant
or otherwise. Executive agrees to provide written notice to the Company of the provision of any such services during the Severance Period and the amount of compensation to be earned in respect thereof within five (5) business days of the
provision of such services. 
 6. NON-SOLICITATION; NON-COMPETITION 

Executive acknowledges that by virtue of Executive’s position as Senior Vice President E Commerce and Chief Information Officer of
the Company, and Executive’s employment hereunder, he will have advantageous familiarity with and knowledge about the Company and will be instrumental in establishing and maintaining goodwill between the Company and its customers, which
goodwill is the property of the Company. Therefore, Executive agrees as follows: 
 (a) During the Term, Executive will not
engage (either directly or indirectly, as shareholder, partner, officer, director, consultant, employee or otherwise) in any enterprise, nor perform any services of any kind whatsoever for or provide any financial assistance to any enterprise, in
the retail clothing business other than through the Company or its subsidiaries and their successors. 
 (b) During the Term,
and for a period of one (1) year following the end of the Term, Executive will not, either for himself or for any other person or entity, directly or indirectly (i) solicit, induce, recruit or encourage any of the Company’s employees
to terminate their relationship with the Company, and/or (ii) attempt to solicit, induce, recruit or encourage any of the Company’s employees to terminate their relationship with the Company; provided, however, that this
restriction shall apply for one (1) year following the termination of Executive’s employment, in the event Executive’s employment is terminated prior to the end of the Term pursuant to, and in accordance with, Sections 5.1 through
5.5. 

 7. TRADE SECRETS 

7.1 Executive specifically agrees that Executive will not at any time, whether during or subsequent to the Term, in any fashion, form or
manner, except in furtherance of Executive’s duties at the Company or with the specific written consent of the Company, either directly or indirectly use or divulge, disclose or communicate to any Person in, any manner whatsoever, any
confidential information of any kind, nature or description concerning any matters affecting or relating to the business of the Company (the “Proprietary Information”), including (a) all information, formulae, compilations,
software programs (including object codes and source codes), devices, methods, techniques, drawings, plans, experimental and research work, inventions, patterns, processes and know-how, whether or not patentable, and whether or not at a commercial
stage related to the Company or any subsidiary thereof (b) buying habits or practices of any of its customers, (c) the Company’s marketing methods and related data, (d) the Company’s costs of materials, (e) the prices
it obtains or has obtained or at which it sells or has sold its products or services, (f) lists or other written records used in the Company’s business, (g) compensation paid to employees and other terms of employment or (h) any
other confidential information of, about or concerning the business of the Company, its manner of operation, or other confidential data of any kind, nature or description (excluding any information that is or becomes publicly known or available for
use through no fault of Executive or as directed by Court order). The Parties hereto stipulate that as between them, Proprietary Information constitutes trade secrets that derive independent economic value, actual or potential, from not being
generally known to the public or to other Persons who can obtain economic value from its disclosure or use and that Proprietary Information is the subject of efforts which are reasonable under the circumstances to maintain its secrecy and of which
this Section 7.1. is an example, and that any breach of this Section 7.1 shall be a material breach of this Agreement. All Proprietary Information shall be and remain the Company’s sole property. 

7.2 Executive agrees to keep confidential and not to use or divulge, except in furtherance of Executive’s duties at the Company, any
confidential or proprietary information of any customer of the Company to which Executive may obtain access during the Term. Executive acknowledges and agrees that a breach of this Section 7.2 shall be a material breach of this Agreement.

 8. INVENTIONS 

8.1 Executive agrees to disclose promptly to the Company any and all concepts, designs, inventions, discoveries and improvements related
to the Company’s business (collectively, “Inventions”) that Executive may conceive, discover or make from the beginning of Executive’s employment with the Company until the termination thereof; whether such is made solely
or jointly with others, whether or not patentable, of which the conception or making involves the use of the Company’s time, facilities, equipment or personnel. 

8.2 Executive agrees to assign, and does hereby assign, to the Company (or its nominee) Executive’s right, title and interest in and
to any and all Inventions that Executive may conceive, discover or make, either solely or jointly with others, patentable or unpatentable, from the beginning of Executive’s employment with the Company until the termination thereof. 

8.3 Executive agrees to sign at the request of the Company any instrument necessary for the filing and prosecution of patent applications
in the United States and elsewhere, including divisional, continuation, revival, renewal or reissue applications, covering any 

 
Inventions and all instruments necessary to vest title to such Inventions in the Company (or its nominee). Executive further agrees to cooperate and assist the Company in preparing, filing and
prosecuting any and all such patent applications and in pursuing or defending any litigation upon inventions covered hereby. The Company shall bear all expenses involved in the prosecution of such patent applications it desires to have filed.
Executive agrees to sign at the request of the Company any and all instruments necessary to vest title in the Company (or its nominee) to any specific patent application prepared by the Company and covering Inventions which Executive has agreed to
assign to the Company (or its nominee) pursuant to Section 8.2. 
 8.4 The provisions of Sections 8.2 and 8.3 do not apply
to any invention which qualifies fully under the provisions of Section 2870 of the California Labor Code, which provides in substance that provisions in an employment agreement providing that an employee shall assign or offer to assign rights
in an invention to his employer do not apply to an invention for which no equipment, supplies, facilities, or trade secret information of the employer was used and which was developed entirely on the employee’s own time, except for those
inventions that either (a) relate, at the time of conception or reduction to practice of the invention: (i) to the business of the employer or (ii) to the employer’s actual or demonstrably anticipated research or development, or
(b) result from any work performed by the employee for the employer. 
 9. SHOP RIGHTS 

The Company shall also have a perpetual, royalty-free, non-exclusive right to use in its business, and to make, use, license and sell
products, processes and/or services derived from any inventions, discoveries, designs, improvements, concepts, ideas, works of authorship, whether patentable or not, including processes, methods, formulae, techniques or know-how related thereto,
that are not within the scope of “Inventions” as defined above, but which are conceived or made by Executive during regular working hours or with the use of the facilities, materials or personnel of the Company. 

10. INJUNCTIVE RELIEF 

Executive acknowledges that any violation of any provision of Sections 6 through 9 and Sections 12 through 13 hereof by Executive will
cause irreparable damage to the Company, that such damages will be incapable of precise measurement and that, as a result, the Company will not have an adequate remedy at law to redress the harm which such violations will cause. Therefore, in the
event of any violation or threatened violation of any provision of Sections 6 through 9 and Sections 12 through 13 by Executive, in addition to any other rights at law or in equity, Executive agrees that the Company will be entitled to seek
injunctive relief including, but not limited to, temporary and/or permanent restraining orders to restrain any violation or threatened violation of such Sections by Executive. 

11. BLUE PENCIL 
 It is
the desire and intent of the Parties that the provisions of Section 6 through 9 and Section 15 hereof shall be enforced to the fullest extent permissible under the laws and public policies applied in each jurisdiction in which enforcement
is sought. Accordingly, if any portion of Sections 6 through 9 and Section 15 shall be adjudicated to be invalid or unenforceable, such provision shall be deemed amended either to conform to such restrictions as

 
the court or arbitrator may allow, or to delete therefrom or reform the portion thus adjudicated to be invalid and unenforceable, such deletion or reformation to apply only with respect to the
operation of such Section in the particular jurisdiction in which such adjudication is made. It is expressly agreed that any court or arbitrator shall have the authority to modify any provision of Sections 6 through 9 and Section 15 if
necessary to render it enforceable, in such manner as to preserve as much as possible the Parties’ original intentions, as expressed therein, with respect to the scope thereof. 

12. COPYRIGHT 
 Executive
agrees that any work prepared for the Company that is eligible for copyright protection under any U.S. or foreign law shall be a work made for hire and ownership of all copyrights (including all renewals and extensions therein) shall vest in the
Company. In the event any such work is deemed not to be a work made for hire for any reason, Executive hereby irrevocably grants, transfers and assigns all right, title and interest in such work and all copyrights in such work and all renewals and
extensions thereof to the Company, and agrees to provide all assistance reasonably requested by the Company in the establishment, preservation and enforcement of its copyright in such work, such assistance to be provided at the Company’s
expense but without any additional compensation to Executive. Executive agrees to and does hereby irrevocably waive all moral rights with respect to the work developed or produced hereunder, including any and all rights of identification of
authorship and any and all rights of approval, restriction or limitation on use or subsequent modifications. 
 13. EXECUTIVE’S DUTIES
ON TERMINATION 
 Upon termination of his employment, Executive will return immediately to the Company all of the
Company’s property in Executive’s possession or control, including, but not limited to, phone cards, credit cards, reports, Proprietary Information, software, keys, files, data, customer lists, equipment, and all other tangible and
intangible property belonging to the Company or relating to Executive’s employment with the Company. 
 14. GENERAL PROVISIONS

 14.1 Assignment; Binding Effect. Neither the Company nor Executive may assign, delegate or otherwise transfer this
Agreement or any of their respective rights or obligations hereunder without the prior written consent of the other party, except that the Company may assign this Agreement to its successors (through acquisition, merger, reorganization or
otherwise), and affiliate, parent or subsidiary corporations. Any attempted prohibited assignment or delegation shall be void. This Agreement shall be binding upon and inure to the benefit of any permitted successors or assigns of the Parties and
the heirs, executors, administrators and/or personal representatives of Executive. 
 14.2 Notices. All notices,
requests, demands and other communications that are required or may be given under this Agreement shall be in writing and shall be deemed to have been duly given when received if personally delivered; when transmitted if transmitted by telecopy,
electronic or digital transmission method with electronic confirmation of receipt; the day after it is sent, if sent for next-day delivery to a domestic address by recognized overnight 

 
delivery service (e.g., FedEx); and upon receipt, if sent by certified or registered mail, return receipt requested. In each case notice shall be sent to: 

If to the Company: 

Vice President, Human Resources 

The Wet Seal, Inc. 

26972 Burbank 

Foothill Ranch, CA 92610 

Facsimile No.: (949) 699-4722 

If to Executive, to such address as shall most currently appear in the records of the Company. 

14.3 Entire Agreement. This Agreement, the Release and the Stock Option Agreement, each as amended from time to time, constitute
the entire agreement of the Parties and shall supersede all prior agreements. 
 14.4 Withholding. All payments hereunder
shall be subject to any required withholding of federal, state and local taxes pursuant to any applicable law or regulation. 

14.5 Amendments; Waivers. This Agreement may be amended or modified, and any of the terms and covenants may be waived, only by a
written instrument executed by the Parties hereto, or, in the case of a waiver, by the party waiving compliance. Any waiver by any party in any one or more instances of any term or covenant contained in this Agreement shall neither be deemed to be
nor construed as a further or continuing waiver of any such term or covenant of this Agreement. 
 14.6 Severability. The
paragraphs and provisions of this Agreement are severable. If any paragraph or provision is found to be unenforceable, the remaining paragraphs and provisions will remain in full force and effect. 

14.7 Governing Law. This Agreement shall be construed, performed and enforced in accordance with, and governed by the laws of the
State of California without giving effect to its principles of conflict of laws. 
 14.8 Counterparts. This Agreement may
be executed in one or more counterparts and delivered by facsimile, each of which shall. be deemed an original, but all of which shall together constitute the same instrument. 

14.9 Survival. Sections 6 through 13, Section 14.7, this Section 14.9, Section 14.10 and Section 15 shall
survive the termination or expiration of this Agreement. 
 14.10 Code Section 409A. Notwithstanding anything herein
to the contrary, this Agreement is intended to be interpreted and applied so that the payment of the benefits set forth herein either shall be exempt from the requirements of Section 409A of the Code, or shall comply with the requirements of
such provision. Furthermore, the Company and its respective officers, directors, employees or agents make no guarantee that this Agreement complies with, or is exempt from, the provisions of Section 409A of the Code and none of the foregoing
shall have 

 
any liability for the failure of this Agreement to comply with, or be exempt from, the provisions of Code Section 409A. Executive shall not have a legally binding right to any distribution
made to Executive in error. 
 15. ARBITRATION 

In recognition of the fact that differences may arise between Executive and the Company relating to certain aspects of Executive’s
employment or the termination of Executive’s employment, and in recognition of the fact that resolution of any differences in the courts is rarely timely or cost effective for either party, both the Company and Executive mutually agree to
arbitrate disputes under the following terms and conditions in order to establish and gain the benefits of a speedy, impartial and cost-effective dispute resolution procedure. 

(a) Except as set forth in subparagraph (e) below, any dispute arising out of or in any way related to Executive’s employment
with the Company, will be decided exclusively by final and binding arbitration, in Orange County, California, pursuant to the procedures required by California law, including the California Arbitration Act, California Code of Civil Procedure
§§ 1281, et seq. and governing case law including Armendariz v. Foundation Health Psychcare Servs., Inc., 24 Cal.4th 83 (2000). The claims covered include, but are not limited to, claims for wages or other compensation due; claims
for breach of any contract or covenant, express or implied; tort claims; claims for discrimination, including but not limited to discrimination based on race, sex, sexual orientation, religion, national origin, age, marital status, handicap,
disability or medical condition or harassment on any of the foregoing bases; claims for benefits, except as excluded herein; and claims for violation of any federal, state or other governmental constitution, statute, ordinance, regulation, or public
policy. This agreement to arbitrate disputes shall not be deemed to apply to a dispute if an agreement to arbitrate such a dispute is prohibited by law. 

(b) The arbitrator may award any form of remedy or relief (including injunctive relief) that would otherwise be available in court. Any
award pursuant to said arbitration shall be accompanied by a written opinion of the arbitrator setting forth the reason for the award. The award rendered by the arbitrator shall be conclusive and binding upon the Parties hereto, and judgment upon
the award may be entered, and enforcement may be sought in, any court of competent jurisdiction. To the extent not inconsistent with applicable laws, the Arbitrator will have the authority to hear and grant motions. 

(c) Except as required under governing law, including Armendariz v. Foundation Health Psychcare Servs., Inc., 24 Cal.4th 83
(2000), each party shall pay its own expenses of arbitration and the expenses of the arbitrator (including compensation) shall be borne equally by the Parties. 

(d) EXECUTIVE AND THE COMPANY UNDERSTAND THAT, ABSENT THIS AGREEMENT, EXECUTIVE AND THE COMPANY WOULD HAVE THE RIGHT TO SUE EACH OTHER IN
COURT, AND THE RIGHT TO A JURY TRIAL, BUT, BY THIS AGREEMENT, GIVE UP THAT RIGHT AND AGREE TO RESOLVE BY ARBITRATION ANY AND ALL GRIEVANCES DIRECTLY OR INDIRECTLY RELATED TO THIS AGREEMENT, EXECUTIVE’S EMPLOYMENT OR THE TERMINATION THEREOF.

 (e) Notwithstanding the above, Executive or the Company shall be entitled to seek injunctive
or other equitable, provisional relief from a court of competent jurisdiction in Orange County, California upon a showing that any potential arbitration award would be rendered ineffectual without such relief. However, if any party seeks or obtains
such injunctive relief, the merits of the dispute and/or determination of any appropriate remedy (other than equitable, provisional relief) shall be resolved in accordance with this Agreement. 

(f) This agreement to arbitrate disputes shall apply to disputes involving the Company as well as the Company’s parents, affiliates,
subsidiaries, successors, assigns, officers, directors, shareholders, employees and agents. Any controversy regarding whether a particular dispute is subject to arbitration shall be decided by the arbitrator. 

 IN WITNESS WHEREOF, the Parties hereto have executed this Agreement effective as of
the date first written above. 
  

			
	THE WET SEAL, INC.
		
	By:	 	 /s/  Edmond S. Thomas

	Name:	 	Edmond S. Thomas
	Title:	 	President and Chief Executive Officer
	
	EXECUTIVE
	
	 /s/  Jon C. Kubo

	Jon C. Kubo

 EXHIBIT A 

Form of Release 

1. Termination of Employment. Jon C. Kubo (“Executive”) acknowledges that his last day of employment with The Wet Seal, Inc. and
any of its affiliates (the “Company”) is                              (the
“Termination Date”). 
 2. Full Release. For the consideration set forth in the Employment Agreement, by and between the
Company and Executive, dated as             , 2010 (the “Employment Agreement”) and for other fair and valuable consideration therefor, Executive, for himself, his
heirs, executors, administrators, successors and assigns (hereinafter collectively referred to as the “Releasors”), hereby fully releases and discharges the Company, its parents, subsidiaries, affiliates, insurers, successors, and
assigns, and their respective officers, directors, employees, and agents (all such persons, firms, corporations and entities being deemed beneficiaries hereof and are referred to herein as the “Company Entities”) from any and all
actions, causes of action, claims, obligations, costs, losses, liabilities, damages and demands of whatsoever character, whether or not known, suspected or claimed, which the Releasors have, from the beginning of time through the date of this
Release, against the Company Entities arising out of or in any way related to Executive’s employment or termination of his employment; provided, however, that this shall not be a release with respect to any amounts and benefits
owed to Executive pursuant to the Employment Agreement upon termination of employment, employee benefit plans of the Company, or Executive’s right to indemnification as provided in the Company’s Charter and By-Laws. 

3. Waiver of Rights Under Other Statutes. Executive understands that this Release waives all claims and rights Executive may have under certain
federal, state and local statutory and regulatory laws, as each may be amended from time to time, including but not limited to, the Age Discrimination in Employment Act (including the Older Workers Benefit Protection Act) (“ADEA”),
Title VII of the Civil Rights Act; the Employee Retirement Income Security Act of 1974; the Equal Pay Act; the Rehabilitation Act of 1973; the Americans with Disabilities Act; the Worker Adjustment and Retraining Notification Act; the California
Fair Employment and Housing Act, the California Family Rights Act, California law regarding Relocations, Terminations, and Mass Layoffs, the California Labor Code; and all other statutes, regulations, common law, and other laws in any and all
jurisdictions (including, but not limited to, California) that in any way relate to Executive’s employment or the termination of his employment. 

4. Informed and Voluntary Signature. No promise or inducement has been made other than those set forth in this Release. This Release is executed
by Executive without reliance on any representation by Company or any of its agents. Executive states that he is fully competent to manage his business affairs and understands that he may be waiving legal rights by signing this Release. Executive
hereby acknowledges that he has carefully read this Release and has had the opportunity to thoroughly discuss the terms of this Release with legal counsel of his choosing. Executive hereby acknowledges that he fully understands the terms of this
Release and its final and binding effect and that he affixes his signature hereto voluntarily and of his own free will. 
 5. Waiver of
Rights Under the Age Discrimination Act. Executive understands that this Release waives all of his claims and rights under the ADEA. The waiver of Executive’s rights 

 
under the ADEA does not extend to claims or rights that might arise after the date this Release is executed. The monies to be paid to Executive are in addition to any sums to which Executive
would be entitled without signing this Release. For a period of seven (7) days following execution of this Release, Executive may revoke the terms of this Release by a written document received by the Chief Financial Officer of the Company or
other person designated by the Board of Directors of the Company no later than 11:59 p.m. of the seventh day following Executive’s execution of this Release. The Release will not be effective until said revocation period has expired. Executive
acknowledges that he has been given up to twenty-one (21) days to decide whether to sign this Release. Executive has been advised to consult with an attorney prior to executing this Release and has been given a full and fair opportunity to do
so. 
 6. Waiver Of Civil Code Section 1542. It is the intention of the parties in signing this Release that it should be effective
as a bar to each and every claim, demand and cause of action stated above. In furtherance of this intention, Executive hereby expressly waives any and all rights and benefits conferred upon Executive by the provisions of SECTION 1542 OF THE
CALIFORNIA CIVIL CODE and expressly consents that this Release shall be given full force and effect according to each and all of its express terms and provisions, including those relating to unknown and unsuspected claims, demands and causes of
action, if any, as well as those relating to any other claims, demands and causes of action referred to above. SECTION 1542 provides: 

“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF
EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.” 
 7.
Miscellaneous. 
 (a) This Release shall be governed in all respects by the laws of the State of California without regard
to its principles of conflict of law. 
 (b) In the event that any one or more of the provisions of this Release is held to be
invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions will not in any way be affected or impaired thereby. Moreover, if any one or more of the provisions contained in this Release is held to be
excessively broad as to duration, scope, activity or subject, such provisions will be construed by limiting and reducing them so as to be enforceable to the maximum extent compatible with applicable law. 

(c) This Release may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall
constitute one and the same instrument. 
 (d) The paragraph headings used in this Release are included solely for convenience
and shall not affect or be used in connection with the interpretation of this Release. 

 (e) This Release, the Employment Agreement and the Stock Option Agreement represent the
entire agreement between the parties with respect to the subject matter hereto and may not be amended except in a writing signed by the Company and Executive. If any dispute should arise under this Release, it shall be settled in accordance with the
terms of Section 15 of the Employment Agreement. 
 (f) This Release shall be binding on the executors, heirs,
administrators, successors and assigns of Executive and the successors and assigns of Company and shall inure to the benefit of the respective executors, heirs, administrators, successors and assigns of the Company Entities and the Releasors.

 IN WITNESS WHEREOF, the parties hereto have executed this Release on
            , 20__. 
  

					
	THE WET SEAL, INC.
		
	By:	 	  

		 	Name:	 	
		 	Title:	 	
	
	EXECUTIVE
	
	  

	Jon C. Kubo

 Exhibit B 

THE WET SEAL, INC. 

2005 STOCK INCENTIVE PLAN, AS AMENDED 

STOCK OPTION AGREEMENT 

This Stock Option Agreement (the “Agreement”) is made and entered into as of August 26, 2010 by and between The Wet
Seal, Inc., a Delaware corporation (the “Company”), and Jon C. Kubo, who is the Senior Vice President E Commerce and Chief Information Officer of the Company (“Participant”). Capitalized terms not defined herein
will have the meaning ascribed to them in the Company’s 2005 Stock Incentive Plan, as amended and/or restated from time to time (the “Plan”) 
  

			
	Total Option Shares:	 	75,000
		
	Exercise Price Per Share:	 	$3.15
		
	Date of Grant:	 	August 26, 2010
		
	Expiration Date:	 	August 26, 2015
		
	 Type of Stock Option

(Check One):
	 	  ̈ Incentive Stock Option, to the maximum extent permissible

x Nonqualified Stock Option

1. Grant of Option. The Company hereby grants to Participant an option (this “Option”) to purchase the total number of
shares of Common Stock of the Company set forth above as Total Option Shares (the “Shares”) at the Exercise Price Per Share, subject to all of the terms and conditions of this Agreement and the Plan. 

2. Exercise Period. 

2.1. Provided Participant continues to provide Continuous Service to the Company or any Subsidiary, the Option will become vested and
exercisable with respect to 33 1/3% of the Shares on each of the next three (3) anniversaries of the Date of Grant until the Option is 100% vested, subject to Executive’s Continuous Service with the Company on each of those vesting dates.
Except as provided in this Agreement, unvested Options will not be exercisable on or after Participant’s termination of Continuous Service (“Termination Date”) and will immediately terminate on such Termination Date.

 2.2. The Option will expire on the Expiration Date set forth above or earlier as provided in this Agreement or the Plan.

 3. Termination of Continuous Service. 

3.1. If Participant’s Continuous Service is terminated, the Options will remain exercisable as follows: 

(a) If Participant’s termination of Continuous Service is due to death, all unvested Options will terminate and all vested Options
will be exercisable by Participant’s designated beneficiary, or if none, the person(s) to whom such Participant’s rights under the Option are transferred by will or the laws of descendent and distribution for one (1) year following
the Termination Date (but in no event beyond the term of the Option). 
 (b) If Participant’s termination of Continuous
Service is due to Disability (as such term is defined in Participant’s Employment Agreement with the Company dated as of the date hereof (the “Employment Agreement”)), all unvested Options will terminate and all vested Options
will be exercisable by Participant for one (1) year following the Termination Date (but in no event beyond the term of the Option). 

(c) If Participant’s termination of Continuous Service is due to termination for Cause (as such term is defined in the Employment
Agreement) or voluntary termination without Good Reason (as such term is defined in the Employment Agreement) by the Participant, the Options will terminate on the Termination Date, regardless of whether the Options were then exercisable.

 (d) If Participant’s termination of Continuous Service is due to any other reason, all unvested Options will terminate
on the Termination Date and all Options (to the extent exercisable as of the Termination Date) will be exercisable for a period of three (3) months following such Termination Date (but in no event beyond the term of the Option) and will
thereafter terminate. Participant’s status as an employee will not be considered terminated in the case of leave of absence agreed to in writing by the Company (including but not limited to military and sick leave); provided,
that, such leave is for a period of not more than three (3) months or reemployment upon expiration of such leave is guaranteed by contract or statute. 

3.2. Nothing in the Plan or this Agreement will confer on Participant any right to the continuation of service with the Company, or any
of its Subsidiaries, or interfere in any way with the right of the Company or its Subsidiaries to terminate his Continuous Service at any time. 

4. Manner of Exercise. 

4.1. A Participant (or in the case of exercise after Participant’s death or Disability, Participant’s executor, administrator,
heir or legatee, as the case may be) may exercise his Option by giving written notice of exercise to the Company in a form approved by the Company specifying the number shares of Common Stock to be purchased. Such notice must be accompanied by the
payment in full of the Option exercise price. The exercise price of the Option may be paid by in the following manner: (i) cash or certified or bank check, (ii) surrender of Common Stock held by Participant for at least 6 months prior to
exercise (or such longer or shorter period as may be required to avoid a charge to earnings for financial accounting purposes) or the attestation of ownership of such shares, in either case, if so permitted by the Company, (iii) if established
by the Company, through a “same day sale” commitment from 

 
Participant and a broker-dealer selected by the Company that is a member of the National Association of Securities Dealers (an “NASD Dealer”) whereby Participant irrevocably
elects to exercise the Options and to sell a portion of the Shares so purchased sufficient to pay for the total exercise price and whereby the NASD Dealer irrevocably commits upon receipt of such shares to forward the total exercise price directly
to the Company, or (iv) by any combination of the foregoing, and, in all instances, to the extent permitted by applicable law. A Participant’s subsequent transfer or disposition of any Common Stock acquired upon exercise of an Option will
be subject to any Federal and state laws then applicable, specifically securities law, and the terms and conditions of the Plan. 

4.2. Upon (a) exercise of a Nonqualified Stock Option or (b) under any other circumstances determined by the Committee in its
sole discretion, the Company will have the right to require any Participant, and such Participant by accepting the Awards granted under the Plan agrees, to pay to the Company the amount of any Federal, state, local income taxes or other taxes
incurred by reason of the exercise of Options granted hereunder that the Company may be required to withhold with respect thereto. In the event of clauses (a) or (b), Participant will pay to the Company (or the Company may withhold) such amount
as the Company deems necessary to satisfy its minimum tax withholding obligation and such payment will be made: (i) in cash, (ii) to the extent authorized by the Committee, having the Company retain shares which would otherwise be
delivered upon exercise of an Option, (iii) to the extent authorized by the Committee, delivering or attesting to ownership of Shares owned by the holder of the Options for at least 6 months prior to the exercise of such Options (or such longer
or shorter period as may be required to avoid a change to earnings for financial accounting purposes), or (iv) any combination of any such methods. For purposes hereof, Shares will be valued at Fair Market Value. 

5. Issuance of Shares. Except as otherwise provided in the Plan or this Agreement, as promptly as practicable after receipt of such written
notification of exercise and full payment of the Exercise Price and any required income tax withholding, the Company will issue or transfer to Participant the number of Shares with respect to which Options have been so exercised (less shares
withheld in satisfaction of tax withholding obligations, if any), and will deliver to Participant a certificate or certificates therefor, registered in Participant’s name. 

6. Company; Participant. 

6.1. The term “Company” as used in this Agreement with reference to Continuous Service will include the Company and its
Subsidiary, if any, as appropriate. 
 6.2. Whenever the word “Participant” is used in any provision of this Agreement
under circumstances where the provision should logically be construed to apply to the beneficiaries, the executors, the administrators, or the person or persons to whom the Options may be transferred by will or by the laws of descent and
distribution, the word “Participant” will be deemed to include such person or persons. 
 7. Non-Transferability. The
Options are not transferable by Participant otherwise than to a designated beneficiary upon death or by will or the laws of descent and distribution, and are exercisable during Participant’s lifetime only by him. No assignment or transfer of
the Options, 

 
or of the rights represented thereby, whether voluntary or involuntary, by operation of law or otherwise (except to a designated beneficiary, upon death, by will or the laws of descent and
distribution), will vest in the assignee or transferee any interest or right herein whatsoever, but immediately upon such assignment or transfer the Options will terminate and become of no further effect. 

8. Rights as Shareholder. Participant or a transferee of the Options will have no rights as shareholder with respect to any Shares until he
or she will have become the holder of record of such Shares, and no adjustment will be made for dividends or distributions or other rights in respect of such Shares for which the record date is prior to the date upon which he or she will become the
holder of record thereof. 
 9. Adjustments. Options may be adjusted or terminated in any manner as contemplated by the Plan.

 10. Change of Control. Upon the occurrence of a Change of Control, all Options will become 100% vested and exercisable;
provided, that, Participant is then in Continuous Service. 
 11. Compliance with Law. Notwithstanding any of the
provisions hereof, Participant hereby agrees that he will not exercise the Options, and that the Company will not be obligated to issue or transfer any shares to Participant hereunder, if the exercise hereof or the issuance or transfer of such
shares will constitute a violation by Participant or the Company of any provisions of any law or regulation of any governmental authority. Any determination in this connection by the Committee will be final, binding and conclusive. The Company will
in no event be obliged to register any securities pursuant to the Securities Act (as now in effect or as hereafter amended) or to take any other affirmative action in order to cause the exercise of the Options or the issuance or transfer of shares
pursuant thereto to comply with any law or regulation of any governmental authority. 
 12. Notice. Every notice or other
communication relating to this Agreement will be in writing, and will be mailed to or delivered to the party for whom it is intended at such address as may from time to time be designated by it in a notice mailed or delivered to the other party as
herein provided; provided, that, unless and until some other address be so designated, all notices or communications by Participant to the Company will be mailed or delivered to the Company at its principal executive office, and all
notices or communications by the Company to Participant may be given to Participant personally or may be mailed to him at his address as recorded in the records of the Company. 

13. Binding Effect. Subject to Section 7 hereof, this Agreement will be binding upon the heirs, executors, administrators and
successors of the parties hereto. 
 14. Governing Law. This Agreement will be construed and interpreted in accordance with the
laws of the State of California without regard to its conflict of law principles. 
 15. Plan. The terms and provisions of the
Plan are incorporated herein by reference, and Participant hereby acknowledges receiving a copy of the Plan. In the event of a conflict or inconsistency between the discretionary terms and provisions of the Plan and the provisions of this Agreement,
this Agreement will govern and control. 

 16. Tax Consequences. Set forth below is a brief summary as of the Effective Date of the Plan
of some of the federal tax consequences of the exercise of the Options and disposition of the Shares. THIS SUMMARY IS NECESSARILY INCOMPLETE, AND THE TAX LAWS AND REGULATIONS ARE SUBJECT TO CHANGE. PARTICIPANT SHOULD CONSULT A TAX ADVISOR BEFORE
EXERCISING THE OPTIONS OR DISPOSING OF THE SHARES. 
 16.1. There may be a regular federal income tax liability upon the
exercise of the Options. Participant will be treated as having received compensation income (taxable at ordinary income tax rates) equal to the excess, if any, of the Fair Market Value of the Shares on the date of exercise over the Exercise Price.
If Participant is a current or former employee of the Company, the Company may be required to withhold from Participant’s compensation or collect from Participant and pay to the applicable taxing authorities an amount equal to a percentage of
this compensation income at the time of exercise. 
 16.2. The following tax consequences may apply upon disposition of the
Shares. 
 (a) If the Shares are held for more than twelve (12) months after the date of the transfer of the Shares
pursuant to the exercise of a Nonqualified Stock Option, any gain realized on disposition of the Shares will be treated as long term capital gain. 

(b) The Company is hereby authorized to withhold from Participant’s compensation, or collect from Participant, and pay to the
applicable taxing authorities an amount equal to a percentage of this compensation income. 
 17. Successors and Assigns. The
Company may assign any of its rights under this Agreement. This Agreement will be binding upon and inure to the benefit of the successors and assigns of the Company. Subject to the restrictions on transfer set forth herein, this Agreement will be
binding upon Participant and Participant’s beneficiaries, executors, administrators and the person or persons to whom this Agreement may be transferred by will or the laws of descent or distribution. 

[THE REMAINDER OF THIS PAGE LEFT BLANK INTENTIONALLY] 

 

							
	THE WET SEAL, INC.	  		  	PARTICIPANT
				
	By:	 	 /s/ Edmond S. Thomas
	  		  	 /s/ Jon C. Kubo

		  		  	(Signature)
			
	 Edmond S. Thomas
	  		  	Jon C. Kubo
	(Please print name)	  		  	
			
	 President and Chief Executive Officer
	  		  	
	(Please print title)

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