Document:

Exhibit
10.20

 

PHOTOGEN
TECHNOLOGIES, INC.

6175 Lusk Boulevard

San Diego, CA  92101

 

 

[date]

 

 

[name of director]

[address]

 

Re:                               Director
Compensation

 

 

 

Dear [name of director]:

 

In consideration of your services as a non-employee member of the board
of directors of Photogen Technologies, Inc. (the “Company”) you are entitled to
receive the compensation set forth in this letter agreement effective as of [                              ]
(the “Effective Date”).

 

Cash

 

•                  an
annual fee of $20,000, which shall be payable quarterly;

•                  an
additional fee of $3,000 if you are a member of the Company’s compensation
committee, payable annually upon your appointment to such committee; and

•                  an
additional fee of $5,000 if you are a member of the Company’s audit committee,
payable annually upon your appointment to such committee.

 

Options

 

•                  a
bi-annual non-qualified option grant to acquire 60,000 shares of the Company’s
common stock to be issued pursuant and subject to the terms of the Photogen
Technologies, Inc. 2000 Long Term Incentive Compensation Plan (the “Plan”), a
copy of which has been provided to you

•                  The option vests
7,500 shares quarterly for eight
quarters commencing at the Effective Date.

•                  The option must
be exercised on or prior to the tenth anniversary of this grant unless such
right expires and terminates sooner in accordance with this Letter Agreement or
the Plan.

•                  The per share
exercise price is [$2.20/$1.30].

•                  The option shall
be exercised by written notice directed to the Company at its principal office,
specifying the number of shares to be acquired upon such exercise and
indicating that the exercise is being paid for (i) in cash or (ii) if
applicable, by a commitment by a broker-dealer to pay to the Company that

 

1

 

portion of any sale proceeds receivable by you upon the exercise of the
option and sale of underlying shares.

•                  The option and
all rights related thereto are non-assignable and non-transferable other than
by will or the laws of descent and distribution and shall be exercisable during
your lifetime only by you or your guardian or legal representative.

•                  The option has
the anti-dilution protection approved by the Board of Directors.

 

Reimbursement

 

Each director shall be reimbursed for the reasonable expenses he incurs
in connection with the exercise of his duties as a director of the Company.

 

Insurance

 

The Company shall maintain directors and officers insurance coverage at
the same or greater levels as currently in place.

 

Indemnification Agreement

 

The Company has (or shall) deliver an executed indemnification
agreement to you providing you with the same indemnification terms as provided
to each other director.

 

Your receipt of the compensation set forth in this letter agreement is
contingent upon the following:

•                  your
attending at least two board meetings each year in person;

•                  your
being available for meetings by teleconference;

•                  your
being available for other necessary telephone calls;

•                  your
being available to serve on the audit, compensation and other committees to the
extent that you are qualified and the Company requires;

•                  your
commitment to serve on the Company’s board of directors for two years, if
nominated and elected; and

•                  your
execution and delivery of a confidentiality agreement in the form proposed by
the Company.

 

Please consult with your tax advisor regarding possible tax
considerations relating to the grant and exercise of any options awarded to
you.  This Letter Agreement shall not
constitute or be evidence of any agreement or understanding, express or
implied, that you have a right to continue as a member of the Company’s Board
of Directors for any period of time.

 

2

 

Please acknowledge your acceptance of the terms of this letter
agreement by signing below.

 

 

	
   

  	
  Sincerely,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Taffy J. Williams, Ph.D.

  
	
   

  	
  President and Chief Executive

  Officer

  

 

 

 

Agreed and acknowledged on this
        day of
                                 ,
             .

 

 

	
   

  	
   

  
	
  [name of director]

  

 

 

3Exhibit 10.34

 

EMPLOYMENT AGREEMENT

 

EMPLOYMENT AGREEMENT, dated as of January 22, 2004 between Neal
Goldberg (“Executive”) and THE CHILDREN’S PLACE RETAIL STORES, INC., a Delaware
corporation (“Employer”).

 

SECTION 1

 

EMPLOYMENT
OF EXECUTIVE

 

1.01.        Employer hereby agrees to employ Executive and Executive hereby agrees
to be and remain in the employ of Employer upon the terms and conditions
hereinafter set forth.

 

SECTION 2

 

EMPLOYMENT
PERIOD

 

2.01.        The terms of Executive’s employment under this Agreement (the
“Employment Period”) shall commence on January 22, 2004 (the “Commencement
Date”) and shall continue unless terminated in accordance with the provisions
of Section 5.

 

SECTION 3

 

DUTIES

 

3.01.        Generally.              During the Employment Period, Executive (i)
shall be employed as President of Employer, (ii) shall serve as a member of the
Executive Management Committee of Employer, (iii) shall devote all of his
business time and attention to the business and affairs of Employer and other
enterprises controlled by, or under common control with, Employer
(collectively, “Company”), and (iv) shall use his best efforts, skills and
abilities in the diligent and faithful performance of his duties and
responsibilities hereunder.  Notwithstanding
the foregoing, Executive shall have the right to (i) engage in personal
investment activities for himself and his family and (ii) engage in charitable
and civic activities, provided the outside activities set forth in (i) and (ii)
hereof do not interfere with Executive’s performance of his duties and
responsibilities hereunder.  In no event
shall Executive serve as an officer or director of any other business
corporation or as a general partner of any partnership except with the prior
written approval of the Chief Executive Officer of Employer.  

 

1

 

3.02.        Reporting.             Executive shall report directly to the Chief
Executive Officer of Employer.  During
the Employment Period, Executive will be subject to all of the written
policies, rules and regulations of which Executive is given notice applicable
to senior executives of Employer and will comply with all directions and
instructions of the Chairman of the Board and the Chief Executive Officer.

 

SECTION 4

 

COMPENSATION

 

4.01.        Compensation, Generally.   For all services rendered and required to be
rendered by Executive under this Agreement, Employer shall pay to Executive
during and with respect to the Employment Period, and Executive agrees to
accept (in full payment), Base Salary and Performance Bonus, all as more fully
described on Exhibit A (collectively, the “Compensation”).

 

4.02.        Other Benefits.     During the Employment Period, Executive shall
be eligible to receive such benefits that the Employer generally makes
available to Employer’s senior executives from time to time (other than those
benefits provided under or pursuant to separately negotiated individual
employment agreements or arrangements). 
Executive’s Base Salary shall constitute the compensation on the basis
of which the amount of Executive’s benefits under any such plan or program
shall be fixed and determined.

 

4.03.        Expense Reimbursement.    Employer shall reimburse Executive for all
business expenses reasonably incurred by him in the performance of his duties
under this Agreement upon his presentation, not less frequently than monthly,
of signed, itemized accounts of such expenditures all in accordance with
Employer’s procedures and policies as adopted and in effect from time to time
and applicable to its senior executives.

 

4.04.        Vacations.             Executive shall be entitled to three weeks
vacation with additional vacation as approved by the Chief Executive Officer,
each twelve-month period worked, which vacation will accrue ratably over the
course of such twelve-month period, which shall be taken at such time or times
as may be approved by the Chief Executive Officer and shall not unreasonably
interfere with Executive’s performance of his duties under this Agreement.

 

2

 

4.05.        Options. Executive shall be granted stock options to
purchase 300,000 shares of Common Stock of the Company at an exercise price
equal to the Fair Market Value (as that term is defined in the Company’s
current stock option plan) of the Company’s common stock as of the close of
business on the Commencement Date and pursuant to the vesting schedule set
forth below.  Subject to Section 6.02,
Executive shall vest in the stock options granted above in accordance with the
following schedule: 60,000 shares on January 31, 2005 and 60,000 shares on each
of the next four anniversaries thereof.

 

SECTION 5

 

TERMINATION
OF EMPLOYMENT PERIOD

 

5.01.        Termination Without Cause.              At
any time during the Employment Period, by notice to the other, Employer or
Executive may terminate Executive’s employment under this Agreement without
cause. Such notice shall specify the effective date of termination, which in
the case of termination by Executive, shall not be less than 30 days after the
date of such notice.

 

5.02.        By Employer: Cause.           At any time during the Employment Period, by
notice to Executive, Employer may terminate Executive’s employment under this
Agreement “for Cause,” effective immediately. Such notice shall specify the
cause for termination. For the purposes of this Section 5.02, “for Cause”
means:

 

(i)            a
breach by Executive of any of the material provisions of this Agreement that
Executive fails to remedy or cease within ten (10) business days after notice
thereof to Executive; or

 

(ii)           any
conduct, action or behavior by Executive that has or may reasonably be expected
to have a material adverse effect on the reputation or interests of the Company
or Executive; or

 

(iii)          the
commission by Executive of an act involving moral turpitude, dishonesty or
fraud, or the engagement in any other willful or intentional misconduct,
whether or not in connection with Executive’s employment hereunder; or

 

(iv)          Executive
shall have committed an act constituting a felony under the laws of the United
States or any state or political subdivision thereof.

 

3

 

5.03.        Disability.              If during the
Employment Period, Executive becomes incapable of fulfilling his obligations
hereunder because of injury or physical or mental illness, and such incapacity
exists for a period of at least 120 consecutive days or for shorter periods
aggregating at least 180 days during any period of twelve consecutive months
(“Disability”), Employer may, upon at least fifteen days’ prior written notice
to Executive, terminate Executive’s employment under this Agreement.  The Disability of Executive shall be
determined by an independent physician acceptable to both Employer and
Executive or his representative.

 

SECTION 6

 

TERMINATION
COMPENSATION

 

6.01.        Entitlement to Payment Upon Termination Without Cause. 
Subject to the provisions of Sections 6.02 and 9.08, if Executive’s
employment hereunder is terminated by Employer pursuant to Section 5.01,
Executive terminates his employment with Employer pursuant to Section 5.01 for
“Good Reason,” or Executive’s employment is terminated for any reason following
a Change of Control as defined in Section 8, Executive shall be entitled to
continuation of his Base Salary for a period of one (1) year following such
termination, subject to execution of a separation agreement and general release
(the terms of which shall be consistent with this Agreement) in a form
reasonably satisfactory to Employer. 
The amount to be paid pursuant to this Section 6.01 is referred to as
the “Termination Compensation” and the period for which such compensation is to
be paid is referred to as the “Relevant Period”.  For purposes of this Section 6.01, “Good Reason” shall mean: (1)
a relocation of Employer’s headquarters outside the New York City metropolitan
area; (2) a demotion of Executive’s position, a material, adverse change in
Executive’s duties and responsibilities, or an adverse change in Executive’s
reporting as set forth in Paragraph 3.02; (3) Employer’s failure to pay any
amount or benefits when due, which failure is not cured within ten (10)
business days after notice to Employer; (4) Employer’s material breach of this
Agreement which breach is not cured within ten (10) business days after notice
to Employer; or (5) Ezra Dabah no longer holds the position of Chief Executive Officer
of Employer.  Such Termination
Compensation shall be paid to Executive in equal consecutive monthly
installments during the Relevant Period, with the first such installment paid
on the first day of the month next following the effective date of termination
of Executive’s employment hereunder.

 

4

 

6.02.        Stock Options Upon Termination.  In the event Executive’s
employment hereunder is terminated by Employer pursuant to Section 5.01 or
Executive terminates his employment with Employer pursuant to Section 5.01 for
“Good Reason,” (i) the stock options scheduled to vest pursuant to Section 4.05
on the next anniversary date following the date of termination of Executive’s
employment, which number of shares shall be prorated based on the date of
termination of Executive’s employment, shall immediately vest, and (ii)
Executive shall have a period of three months during which any vested options
held by Executive may be exercised (at the conclusion of which period any
unexercised options shall permanently expire). 
In the event that Executive’s employment is terminated by Employer
pursuant to Section 5.02 or Executive voluntarily terminates his employment for
any reason other than “Good Reason”, (i) all stock options previously granted
to Executive that have not yet vested shall be forfeited, and (ii) Executive
shall have a period of three months during which any vested options held by
Executive may be exercised (at the conclusion of which period any unexercised options
shall permanently expire).  In the event
that Executive’s employment is terminated by Employer or Executive for any
reason following a Change in Control as defined in Section 8, (i) all stock
options previously granted to Executive that have not yet vested shall vest
immediately; and (ii) Executive shall have a period of three months during
which any vested options held by Executive may be exercised (at the conclusion
of which period any unexercised options shall permanently expire).   In the event that Executive’s employment is
terminated by Employer by reason of Disability pursuant to Section 5.03, or if
Executive dies, (i) all stock options previously granted to Executive that have
not yet vested shall vest immediately, and (ii) Executive (or his estate or
personal representative) shall have a period of twelve months during which any
vested options held by Executive may be exercised (at the conclusion of which
period any unexercised options shall permanently expire).

 

6.03.        No Other Termination Compensation. Executive shall not be entitled to any benefit or compensation
following termination of his employment hereunder, except as set forth in this
Section 6 and Section 8.01, if applicable.

 

5

 

SECTION 7

 

LOCATION
OF EXECUTIVE’S ACTIVITIES

 

7.01.        Principal Place of Business.               Executive’s principal place of business in
the performance of his duties and obligations under this Agreement shall be in
the New York metropolitan area, which includes Secaucus, New Jersey. For so
long as Employer’s headquarters are located in the New York City metropolitan
area, Executive’s principal place of business shall be located at such
headquarters.

 

7.02.        Travel.  Notwithstanding the provisions of Section
7.01, Executive will engage in such travel and spend time in other places as
may be necessary or appropriate in furtherance of his duties hereunder.

 

SECTION 8

 

CHANGE
IN CONTROL

 

8.01.        Effect of Change in Control.                If
a Change in Control (as hereinafter defined) shall occur and if Executive is
terminated by Employer or Executive for any reason, all outstanding stock
options under the stock option plan shall immediately vest and Executive shall
be entitled to all the payments in Section 6.01.

 

As used in this Agreement, “Change in Control” means the occurrence
during the Term of any of the following events:

 

(i)            The
sale to any purchaser of (A) all or substantially all of the assets of the
Employer or (B) capital stock representing more than 50% of the stock of the
Employer entitled to vote generally in the election of directors of the
Employer; or

 

(ii)           The
merger or consolidation of the Employer with another corporation if,
immediately after such merger or consolidation, less than a majority of the
combined voting power of the then-outstanding securities entitled to vote
generally in the election of directors of the surviving or resulting
corporation in such merger or consolidation is held, directly or indirectly, in
the aggregate by the holders immediately prior to such transaction of the
outstanding securities of the Employer; or

 

6

 

(iii)          There
is a report filed on Schedule 13D or Schedule 14D-1 (or any successor schedule,
form, or report or item therein), each promulgated pursuant to the Securities
Exchange Act of 1934, as amended (the “Exchange Act”), disclosing that any
person (as the term “person” is used in Section 13(d)(3) or Section 14(d) (2)
of the Exchange Act) has become the beneficial owner (as the term “beneficial owner”
is defined under Rule 13d-3 or any successor rule or regulation promulgated
under the Exchange Act) of securities representing 50% or more of the combined
voting power of the voting stock of Employer; or

 

(iv)          Employer
files a report or proxy statement with the Securities and Exchange Commission
pursuant to the Exchange Act disclosing in response to Form 8-K or Schedule 14A
(or any successor schedule, form, or report or item therein) that a change in
control of Employer has occurred or will occur in the future pursuant to any
then existing contract or transaction.

 

SECTION 9

 

EXCLUSIVITY
OF SERVICES, CONFIDENTIAL

 

INFORMATION
AND RESTRICTIVE COVENANTS

 

9.01.        Exclusivity of Services; Use of Name.              During the Employment Period and continuing
through the first anniversary of the date in which Executive ceases to be an
employee of the Company (the “Covenant Period”), Executive will not:

 

(i)            Promote,
participate or engage in any business on behalf of any Direct Competitor of the
Company, whether Executive is acting as owner, partner, stockholder, employee,
broker, agent, principal, trustee, corporate officer, director, consultant or
in any other capacity whatsoever; provided, however, that this will not prevent
Executive from holding for investment up to 1% of any class of stock or other
securities quoted or dealt in on a recognized stock exchange or on Nasdaq.  For purposes of this Section, a Direct
Competitor of the Company means (A) any division of The Gap, Inc. or any Person
under common control with The Gap, Inc. that is engaged in the retail sale of
children’s apparel, (B) any division of The Limited, Inc. or any Person under
common control with The Limited, Inc. that is engaged in the retail sale of
children’s apparel, (C) Gymboree or Kids R Us or any Person

 

7

 

under common control with
Gymboree or Kids R Us, as the case may be, or (D) any other Person engaged in
the retail sale of children’s apparel.

 

(ii)           Directly
or indirectly employ (other than on behalf of the Company), solicit or entice
away any director, officer or employee of the Company or any of its
subsidiaries; or

 

(iii)          Take
any action to interfere, directly or indirectly, with the goodwill of the
Company or any of its subsidiaries, or induce or attempt to induce any Person
doing business with the Company to cease doing business with the Company; or

 

(iv)          Use
the name of the Company or its subsidiaries in the conduct of any business
activities (except in furtherance of the Company’s business) or for Executive’s
personal use without the prior written consent of the Company.

 

9.02.        Confidential and Proprietary Information; Work Product; Warranty.

 

a.             Confidentiality.     Executive acknowledges and agrees that there
are certain trade secrets and confidential and proprietary information
(collectively, “Confidential Information”) which have been developed by the
Company and which are used by the Company in its business.  Confidential Information shall include,
without limitation:  (i) customer lists
and supplier lists; (ii) the details of the Company’s relationships with its
customers, including the financial relationship with a customer; (iii) the
Company’s marketing and development plans, business plans; and (iv) other
information proprietary to the Company’s business.  Executive shall not, at any time during or after his employment
hereunder, use or disclose such Confidential Information, except to authorized
representatives of the Company or as required in the performance of his duties
and responsibilities hereunder. 
Executive shall return all Company property, such as computers, software
and cell phones, and documents (and any copies including in machine or
human-readable form), to the Company when his employment terminates.  Executive shall not be required to keep
confidential any information, which is or becomes publicly available or is
already in his possession (unless obtained from the Company).  Further, Executive shall be free to use and
employ his general skills, know-how and expertise, and to use, disclose and
employ any generalized ideas, concepts, know-how, methods, techniques or
skills, including those gained or learned during the course of the performance
of any services

 

8

 

hereunder, so long as he
applies such information without disclosure or use of any Confidential
Information.  Executive hereby
acknowledges that his employment under this Agreement does not conflict with,
or breach any existing confidentiality, non-competition or other agreement to
which Executive is a party or to which he may be subject.

 

b.             Work Product. 
Executive agrees that all copyrights, patents, trade secrets or other
intellectual property rights associated with any ideas, concepts, techniques,
inventions, processes, or works of authorship developed or created by him
during his employment by the Company and for a period of 6 months thereafter,
that (i) relate, whether directly or indirectly, to the Company’s actual or
anticipated business, research or development or (ii) are derived from any work
performed by Executive on the Company’s behalf, shall, to the extent possible,
be considered works made for hire within the meaning of the Copyright Act (17
U.S.C. § 101 et. seq.) (the “Work Product”). 
All Work Product shall be and remain the property of the Company.  To the extent that any such Work Product may
not, under applicable law, be considered works made for hire, Executive hereby
grants, transfers, assigns, conveys and relinquishes, and agrees to grant,
transfer, assign, convey and relinquish from time to time, on an exclusive
basis, all of his right, title and interest in and to the Work Product to the
Company in perpetuity or for the longest period otherwise permitted by
law.  Consistent with his recognition of
the Company’s absolute ownership of all Work Product, Executive agrees that he
shall (i) not use any Work Product for the benefit of any party other than the
Company and (ii) perform such acts and execute such documents and instruments
as the Company may now or hereafter deem reasonably necessary or desirable to
evidence the transfer of absolute ownership of all Work Product to the Company;
provided, however, if following ten (10) business days’ written notice from the
Company, Executive refuses, or is unable, due to disability, incapacity, or
death, to execute such documents relating to the Work Product, he hereby
appoints any of the Company’s officers as his attorney-in-fact to execute such
documents on his behalf.  This agency is
coupled with an interest and is irrevocable without the Company’s prior written
consent.

 

c.             Warranty.              Executive represents and warrants to the
Company that (i) there are no claims that would adversely affect his ability to
assign all right, title and interest in and to the Work Product to the Company;
(ii) the Work Product does not violate any patent, copyright or other
proprietary right of any third party;

 

9

 

 (iii) Executive has the legal right to grant the Company the
assignment of his interest in the Work Product as set forth in this Agreement;
and (iv) he has not brought and will not bring to his employment hereunder, or
use in connection with such employment, any trade secret, confidential or
proprietary information of another, or computer software, except for software
that he has a right to use for the purpose for which it shall be used, in his
employment hereunder.

 

9.03.        Injunctive Relief.  Executive acknowledges that a breach or threatened breach of any of the
terms set forth in this Section 9 shall result in an irreparable and continuing
harm to the Company for which there shall be no adequate remedy at law.  The Company shall, without posting a bond,
be entitled to obtain injunctive and other equitable relief, in addition to any
other remedies available to the Company.

 

9.04.        Essential and Independent Agreements.  It is understood by the
parties hereto that Executive’s obligations and the restrictions and remedies
set forth in this Section 9 are essential elements of this Agreement and that
but for his agreement to comply with and/or agree to such obligations,
restrictions and remedies, the Company would not have entered into this
Agreement or employed him.  Executive’s
obligations and the restrictions and remedies set forth in this Section 9 are
independent agreements and the existence of any claim or claims by him against
the Company under this Agreement or otherwise will not excuse his breach of any
of his obligations or affect the restrictions and remedies set forth under this
Section 9.

 

9.05.        Survival of Terms; Representations.  Obligations under this
Section 9 hereof shall remain in full force and effect notwithstanding the
termination of Executive’s employment. 
Executive acknowledges that he is sophisticated in business, and that
the restrictions and remedies set forth in this Section 9 do not create an
undue hardship on him and will not prevent him from earning a livelihood.  He further acknowledges that he has had a
sufficient period of time within which to review this Agreement, including this
Section 9, with an attorney of his choice and he has done so to the extent he
desired.  Executive and the Company
agree that the restrictions and remedies contained in this Section 9 are
reasonable and necessary to protect the Company’s legitimate business interests
regardless of the reason for or circumstances giving rise to such termination
and that he and the Company intend that such restrictions and remedies shall be
enforceable to the fullest extent permissible by law.  Executive agrees that given the scope of

 

10

 

the Company’s business and
the sophistication of the information highway, any further geographic
limitation on such remedies and restrictions would deny the Company the protection
to which it is entitled hereunder.  If
it shall be found by a court of competent jurisdiction that any such
restriction or remedy is unenforceable but would be enforceable if some part
thereof were deleted or modified, then such restriction or remedy shall apply
with such modification as shall be necessary to make it enforceable to the
fullest extent permissible under law.

 

9.06.        Mutually Non-Disparagement.          Neither Executive nor senior executives of
Employer will make or authorize any public statement disparaging the other in
its or his business interests and affairs. Notwithstanding the foregoing,
neither party shall be (i) required to make any statement that it or he
believes to be false or inaccurate, or (ii) restricted in connection with any
litigation, arbitration or similar proceeding or with respect to its response
to any legal process.

 

9.07.        Other Duties of Employee During and After Employment Period.               Both during and after the Employment Period,
Executive shall, upon reasonable notice, furnish such information as may be in
his possession to, and cooperate with, the Company as may reasonably be
requested by the Company in connection with any litigation in which the Company
is or may be a party.

 

9.08.        Breaches of Provisions.      If Executive breaches any of the provisions
of this Section 9 then, and in any such event, in addition to other remedies
available to Employer, Executive shall not be entitled to any Termination
Compensation, including any Termination Compensation made to him hereunder prior
to Employer’s discovery of such breach.

 

SECTION 10

 

MISCELLANEOUS

 

10.01.      Notices. Any notice, consent, or authorization
required or permitted to be given pursuant to this Agreement shall be in
writing and sent to the party for or to whom intended, at the address of such
party set forth below, by certified mail, postage paid, or at such other
address as either party shall designate by notice given to the other in the
manner provided herein.

 

11

 

	
  If
  to Employer:

  	
   

  	
   

  
	
   

  	
  Attention:

  	
  Steven
  Balasiano, Esq.

  
	
   

  	
   

  	
  Vice
  President & General Counsel

  
	
   

  	
   

  	
  The
  Children’s Place Retail Stores, Inc.

  
	
   

  	
   

  	
  915
  Secaucus Road

  
	
   

  	
   

  	
  Secaucus,
  NJ 07094

  
	
   

  	
   

  	
   

  
	
  With
  Copies to:

  	
   

  	
   

  
	
   

  	
   

  	
  Ezra
  Dabah

  
	
   

  	
   

  	
  Chairman/Chief
  Executive Officer

  
	
   

  	
   

  	
  The
  Children’s Place Retail Stores, Inc.

  
	
   

  	
   

  	
  915
  Secaucus Road

  
	
   

  	
   

  	
  Secaucus,
  NJ 07094

  
	
   

  	
   

  	
   

  
	
  If
  to Executive:

  	
   

  	
  Neal
  Goldberg

  
	
   

  	
   

  	
  8
  Camelot Drive

  
	
   

  	
   

  	
  Livingston,
  NJ 07039

  
	
   

  	
   

  	
   

  
	
  With
  Copies to:

  	
   

  	
  Hollis
  Gonerka Bart, Esq.

  
	
   

  	
   

  	
  McGuire
  Woods LLP

  
	
   

  	
   

  	
  65
  E. 55th Street

  
	
   

  	
   

  	
  New
  York, NY 10022

  

 

10.02.      Taxes.                     Employer is authorized to withhold from
payments made hereunder to Executive such amounts for income tax, social
security, unemployment compensation and other judgment of Employer to comply
with applicable laws and regulations.

 

10.03.      Governing Law.    This Agreement shall be governed by and
construed and enforced in accordance with the laws of the State of Delaware
applicable to agreements made and to be performed therein.

 

10.04.      Headings.              All descriptive headings in this Agreement
are inserted for convenience only and shall be disregarded in construing or
applying any provision of this Agreement. 
Should any provision of this Agreement

 

12

 

require judicial interpretation, the court interpreting
or construing the same shall not construe the provision against any party by
reason of the rule of interpretation that a document is to be construed more
strictly against the party who prepared the same.

 

10.05.      Waiver of Breach.                The waiver by either party of a breach of any
provision of this Agreement by the other party must be in writing and shall not
operate or be construed as a waiver of any other or subsequent breach by such
other party.

 

10.06.      Assignment.         This Agreement is personal in its nature and the parties shall not,
without the consent of the other, assign or transfer this Agreement or any
rights or obligations hereunder; provided, however, that Employer may assign
this Agreement to any of its affiliates or in connection with the reorganization,
merger or sale of Employer or the sale of substantially all the assets of
Employer, and the provisions of this Agreement shall inure to the benefit of,
and be binding upon, each successor of Employer , whether by merger,
consolidation, transfer of all or substantially all of its assets, or
otherwise.

 

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

 

10.08.      Severability.          If any provision of this Agreement or part
thereof, is held to be unenforceable, the remainder of such provisions of this
Agreement, as the case may be, shall nevertheless remain in full force and
effect.

 

10.09.      Entire Agreement and Integration.    This
Agreement contains the entire agreement and understanding between Employer and
Executive with respect to the subject matter hereof. Such agreement supersedes
any prior agreement between the parties relating to the subject matter hereof.

 

[SIGNATURE PAGES FOLLOW]

 

13

 

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

 

	
   

  	
  THE CHILDREN’S PLACE RETAIL STORES, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Ezra Dabah

  	
   

  
	
   

  	
   

  	
  EZRA DABAH

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ Neal Goldberg

  	
   

  
	
   

  	
   

  	
  NEAL GOLDBERG

  
					

 

14

 

Exhibit A

 

COMPENSATION

 

1.             Base Salary:         At the initial rate of $625,000 per year,
payable in equal installments not less frequently than monthly during each year
of the Employment Period. Base Salary shall be subject to annual review by the
Compensation Committee.

 

2.             Performance Bonus:          Following each Bonus Period (as defined below), Executive shall be
entitled to receive a Performance Bonus based upon the Operating Income of
Employer during such Bonus Period. The Performance Bonus for each such Period
will be payable within 90 days after the end of such period. The amount of the
Performance Bonus for each Bonus Period will be equal to a product equal to (a)
Executive’s semi-annual Base Salary, times (b) 50%, times (c) the Bonus
Percentage (as hereinafter defined). The following provisions shall apply to
determinations relating to Performance Bonus.

 

“Bonus Percentage” shall mean, for each Bonus Period, a percentage for
such period that is determined based upon Operating Income in accordance with a
schedule adopted by the Board for all senior executives prior to commencement
of such period or as soon thereafter as possible, except that the Bonus percentage
shall be not more than 200% for any Bonus Period.

 

“Bonus Period” shall mean each of the two periods of approximately six
months duration within each fiscal year of the Employer, one beginning on the
first day of the fiscal year and ending on this Saturday on or nearest (whether
following or preceding) July 31, of the calendar year in which it commenced,
and the other beginning on the Sunday following such Saturday and ending on the
last day of such fiscal year.

 

“Operating Income” shall mean, for each Bonus Period, the operating
income of Employer for such period as determined in accordance with generally
accepted accounting principles. The amount of Operating Income shall be
determined by the Compensation Committee, with respect to the Bonus Period ending
on approximately July 31st and January 31st of each year.

 

3.             Guaranteed Performance Bonus:    Executive shall be entitled to a minimum
Performance Bonus of $156,250 during the Bonus Period ending on July 31, 2004.

 

15

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