Document:

Exhibit 10.6

 

VOTING AGREEMENT

 

This Voting Agreement (this “Agreement”) is made and entered into as of September 8, 2015, by and among RG Parent, LLC, a Delaware limited liability company (the “Company”), Joe’s Jeans, Inc., a Delaware corporation (“Parent”, and, together with the Company, the “Merger Parties”), and Joseph M. Dahan (the “Stockholder”).

 

RECITALS

 

A.                                    Concurrently with the execution of this Agreement, the Merger Parties and JJ Merger Sub LLC, a Delaware limited liability company (“Merger Sub”), have entered into an Agreement and Plan of Merger (the “Merger Agreement”) which, among other things, provides for the merger of Merger Sub with and into the Company with the Company being the surviving entity (the “Merger”).

 

B.                                    As a condition and an inducement to the Merger Parties’ willingness to enter into the Merger Agreement, the Merger Parties have required that the Stockholder agrees, and the Stockholder has agreed to, enter into this Agreement with respect to all common stock, par value $0.10 per share, of Parent (the “Parent Common Stock”) that the Stockholder owns beneficially (as defined in Rule 13d-3 under the Exchange Act) or of record.

 

C.                                    The Stockholder is the beneficial or record owner, and has either sole or shared voting power over, such number of shares of the Parent Common Stock (the “Parent Stock”) as is indicated opposite the Stockholder’s name on Schedule A attached hereto.

 

D.                                    The Merger Parties desire that the Stockholder agrees, and the Stockholder is willing to agree, subject to the limitations herein, not to Transfer (as defined below) any of its Subject Securities (as defined below), and to vote its Subject Securities in a manner so as to facilitate consummation of the Merger.

 

NOW, THEREFORE, in consideration of the foregoing and the respective representations, warranties, covenants and agreements set forth below and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound, do hereby agree as follows:

 

1.                                      Definitions.  Capitalized terms used but not otherwise defined herein shall have the respective meanings ascribed to such terms in the Merger Agreement.  When used in this Agreement, the following terms in all of their tenses, cases and correlative forms shall have the meanings assigned to them in this Section 1 or elsewhere in this Agreement.

 

“Expiration Time” shall mean the earlier to occur of (i) the date upon which the Merger becomes effective and (ii) such date and time as the Merger Agreement shall be terminated in accordance with its terms.

 

 

“Permitted Transfer” shall mean, in each case, with respect to the Stockholder, so long as (i) such Transfer is in accordance with applicable Law and (ii) the Stockholder is and at all times has been in compliance with this Agreement, any Transfer of Subject Securities by the Stockholder to any Person so long as such Person, in connection with such Transfer, executes a joinder to this Agreement pursuant to which such Person agrees to become a party to this Agreement and be subject to the restrictions applicable to the Stockholder and otherwise become a party for all purposes of this Agreement (including, without limitation, the grant of proxies pursuant to Section 4 hereof); provided, that no such Transfer shall relieve the transferring Stockholder from its obligations under this Agreement, other than with respect to the Parent Stock transferred in accordance with the foregoing provision.

 

“Specified Matters” shall mean the (i) adoption of an amendment to Parent’s certificate of incorporation to increase the authorized number of shares of Parent Common Stock and to effect a 1 for 30 reverse stock split of the Parent Common Stock (ii) approval of the issuance of Parent Common Stock in connection with the Merger and the issuance of Parent Common Stock upon conversion of preferred stock, par value $0.10 per share, of Parent to be issued by Parent in connection with the consummation of the Merger pursuant to the Stock Purchase Agreement and (iii) any other matter to be voted on as a required condition to closing of the Merger and the transactions contemplated therein.

 

“Subject Securities” shall mean, collectively, the Parent Stock and the New Parent Stock.

 

“Transfer” shall mean (i) any direct or indirect offer, sale, assignment, encumbrance, pledge, hypothecation, disposition, loan or other transfer (by operation of Law or otherwise), either voluntary or involuntary, or entry into any contract, option or other arrangement or understanding with respect to any offer, sale, assignment, encumbrance, pledge, hypothecation, disposition, loan or other transfer (by operation of Law or otherwise), of any Subject Securities (or any security convertible or exchangeable into Subject Securities) or interest in any Subject Securities, excluding, for the avoidance of doubt, entry into this Agreement, or (ii) entering into any swap or any other agreement, transaction or series of transactions that hedges or transfers, in whole or in part, directly or indirectly, the economic consequence of ownership of such capital stock or interest in capital stock, whether any such swap, agreement, transaction or series of transactions is to be settled by delivery of securities, in cash or otherwise.  For purposes of this Agreement, “capital stock” shall include interests in a limited partnership.

 

2.                                      Agreement to Retain the Parent Stock.

 

2.1                               Transfer and Encumbrance of Subject Securities.  Other than a Permitted Transfer, hereafter until the Expiration Time, the Stockholder agrees, with respect to any Subject Securities beneficially owned by the Stockholder, not to (i) Transfer any such Subject Securities, or (ii) deposit any such Subject Securities into a voting trust or enter into a voting agreement or arrangement with respect to such Subject Securities or grant any proxy (except as otherwise provided herein) or power of attorney with respect thereto.

 

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2.2                               Additional Purchases.  The Stockholder agrees that any Parent Common Stock and other capital shares of Parent that such Stockholder purchases or otherwise acquires or with respect to which such Stockholder otherwise acquires sole voting power after the execution of this Agreement and prior to the Expiration Time (the “New Parent Stock”) shall be subject to the terms and conditions of this Agreement to the same extent as if they constituted the Parent Stock.

 

2.3                               Unpermitted Transfers.  Any Transfer or attempted Transfer of any Subject Securities in violation of this Section 2 shall, to the fullest extent permitted by Law, be null and void ab initio.

 

3.                                      Agreement to Vote and Approve.  Hereafter until the Expiration Time, at every meeting of the stockholders of Parent called with respect to any of the following matters, and at every adjournment or postponement thereof, and on every action or approval by written consent of the stockholders of Parent with respect to any of the following matters, the Stockholder shall, or shall cause the holder of record on any applicable record date to (including via proxy), vote the Parent Stock and any New Parent Stock owned by the Stockholder: (i) in favor of the Specified Matters, and (ii) against (a) any action or agreement that would reasonably be expected to result in any condition to the consummation of the Merger set forth in Article V of the Merger Agreement not being fulfilled, and (b) any action which could reasonably be expected to delay, postpone or adversely affect consummation of the transactions contemplated by the Merger Agreement.

 

4.                                      Irrevocable Proxy.  By execution of this Agreement, the Stockholder does hereby appoint and constitute the Company, until the Expiration Time (at which time this proxy shall automatically be revoked), with full power of substitution and resubstitution, as the Stockholder’s true and lawful attorney-in-fact and irrevocable proxy, to the fullest extent of the Stockholder’s rights with respect to the Subject Securities beneficially owned by the Stockholder, to vote such Subject Securities solely with respect to the matters set forth in Section 3 hereof; provided, however, that the foregoing shall only be effective if the Stockholder fails to be counted as present, to consent or to vote the Stockholder’s Subject Securities, as applicable, in accordance with Section 3 above.  The Stockholder intends this proxy to be irrevocable and coupled with an interest hereafter until the Expiration Time (at which time this proxy shall automatically be revoked) for all purposes and hereby revokes any proxy previously granted by the Stockholder with respect to its Subject Securities.  The Stockholder hereby ratifies and confirms all actions that the proxy appointed hereunder may lawfully do or cause to be done in accordance with this Agreement.

 

5.                                      Representations and Warranties of the Stockholder.  The Stockholder hereby represents and warrants to the Company Parties as follows:

 

5.1                               Due Authority.  The Stockholder has the full power and authority to make, enter into and carry out the terms of this Agreement and to grant the irrevocable proxy as set forth in Section 4 hereof.  This Agreement has been duly and validly executed and delivered by the Stockholder and constitutes a valid and binding agreement of the Stockholder enforceable against it in accordance with its terms, except to the extent enforceability may be limited by the effect of applicable bankruptcy, reorganization, insolvency, moratorium or other Laws affecting the enforcement of creditors’ rights generally and the effect of general principles of equity, regardless of whether such enforceability is considered in a proceeding at Law or in equity.

 

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5.2                               Ownership of the Parent Stock.  As of the date hereof, the Stockholder (i) is the beneficial or record owner of the Parent Common Stock indicated on Schedule A hereto opposite the Stockholder’s name, free and clear of any and all Liens, other than those created by this Agreement, as disclosed on Schedule A or as would not prevent the Stockholder from performing its obligations under this Agreement, and (ii) has sole voting power over all of the Parent Stock beneficially owned by the Stockholder.  As of the date hereof, the Stockholder does not own, beneficially or of record, any capital stock or other securities of Parent other than the Parent Common Stock set forth on Schedule A opposite the Stockholder’s name.  As of the date hereof, the Stockholder does not own, beneficially or of record, any rights to purchase or acquire any shares of capital stock of Parent except as set forth on Schedule A opposite the Stockholder’s name.

 

5.3                               No Conflict; Consents.

 

(a)                                 The execution and delivery of this Agreement by the Stockholder does not, and the performance by the Stockholder of the obligations under this Agreement and the compliance by the Stockholder with any provisions hereof do not and will not: (i) conflict with or violate in any material respect any Laws applicable to the Stockholder, or (ii) result in any material breach of or constitute a material default (or an event that with notice or lapse of time or both would become a material default) under, or give to others any rights of termination, amendment, acceleration or cancellation of, or result in the creation of a Lien on any of the Parent Stock beneficially owned by the Stockholder pursuant to, any note, bond, mortgage, indenture, contract, agreement, lease, license, permit, franchise or other instrument or obligation to which the Stockholder is a party or by which the Stockholder is bound.

 

(b)                                 No consent, approval, order or authorization of, or registration, declaration or filing with, any Governmental Authority or any other Person, is required by or with respect to the Stockholder in connection with the execution and delivery of this Agreement or the consummation by the Stockholder of the transactions contemplated hereby.

 

5.4                               Absence of Litigation.  There is no Action pending against, or, to the knowledge of the Stockholder, threatened against or affecting, the Stockholder that could reasonably be expected to materially impair or materially adversely affect the ability of such Stockholder to perform such Stockholder’s obligations hereunder or to consummate the transactions contemplated hereby on a timely basis.

 

6.                                      Termination.  This Agreement shall terminate and shall have no further force or effect immediately as of and following the Expiration Time.

 

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7.                                      Notice of Certain Events.  The Stockholder shall notify the Company promptly of (a) any fact, event or circumstance that would cause, or reasonably be expected to cause or constitute, a breach in any material respect of the representations and warranties of the Stockholder under this Agreement and (b) the receipt by the Stockholder of any notice or other communication from any Person alleging that the consent of such Person is or may be required in connection with this Agreement; provided, however, that the delivery of any notice pursuant to this Section 7 shall not limit or otherwise affect the remedies available to any party.

 

8.                                      Miscellaneous.

 

8.1                               Severability.  If any term or other provision of this Agreement is determined to be invalid, illegal or incapable of being enforced by any rule of Law or public policy, all other conditions and provisions of this Agreement shall nevertheless remain in full force and effect so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner materially adverse to any party.  Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, the parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible to the fullest extent permitted by applicable law in an acceptable manner to the end that the transactions contemplated hereby are fulfilled to the extent possible.

 

8.2                               Binding Effect and Assignment.  This Agreement and all of the provisions hereof shall be binding upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns.

 

8.3                               Amendments and Modifications.  This Agreement may not be modified, amended, altered or supplemented except upon the execution and delivery of a written agreement executed by the parties hereto.

 

8.4                               Specific Performance; Injunctive Relief.  The parties hereto agree that irreparable damage would occur in the event any provision of this Agreement was not performed in accordance with the terms hereof or was otherwise breached.  It is accordingly agreed that the parties shall be entitled to specific relief hereunder, including, without limitation, an injunction or injunctions to prevent and enjoin breaches of the provisions of this Agreement and to enforce specifically the terms and provisions hereof, in the Delaware Court of Chancery and any state appellate court therefrom within the State of Delaware (unless the Delaware Court of Chancery shall decline to accept jurisdiction over a particular matter, in which case, in any federal court within the State of Delaware), in addition to any other remedy to which they may be entitled at Law or in equity.  Any requirements for the securing or posting of any bond with respect to any such remedy are hereby waived.

 

8.5                               Notices.  All notices, requests, claims, consents, demands and other communications under this Agreement shall be in writing and shall be deemed given if delivered personally, sent by overnight courier (providing proof of delivery) to the parties or sent by facsimile or e-mail of a pdf attachment (providing confirmation of transmission) at the following addresses or facsimile numbers (or at such other address or facsimile number for a party as shall be specified by like notice):

 

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(a)                                 if to the Stockholder, to it at:

 

With a copy to (which shall not constitute notice)

 

(b)         if to Parent, to:

 

Joe’s Jeans, Inc.

2340 S. Eastern Avenue

Commerce, CA 90040

Attention: Interim Chief Executive Officer

Fax: (323) 837-3791

 

With a copy (which shall not constitute notice) to:

 

Akin Gump Strauss Hauer & Feld LLP

1333 New Hampshire Avenue NW

Washington DC 20036

Attention: Russell W. Parks Jr.

Erica D. McGrady

Fax:  (202) 887-4288

Email: rparks@akingump.com

emcgrady@akingump.com

 

(b)         if to the Company, to:

 

RG Parent, LLC

c/o Tengram Capital Partners

15 Riverside Avenue, First Floor

Westport, CT 06880

Attention: Andrew R. Tarshis

Facsimile: (203) 454-6998

 

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With a copy (which shall not constitute notice) to:

 

Skadden, Arps, Slate, Meagher & Flom LLP

300 South Grand Avenue, Suite 3400

Los Angeles, California 90071

Fax:  (213) 687-5600

Attention:  Jeffrey H. Cohen

Andy D. Garelick

Email: jeffrey.cohen@skadden.com

andrew.garelick@skadden.com

 

Or to such other address as any party may have furnished to the other in writing in accordance herewith, except that notices of change of address shall be effective upon receipt.

 

8.6                               Governing Law; Jurisdiction and Venue.  This Agreement shall be governed by, and construed in accordance with, the internal laws of the State of Delaware applicable to agreements entered into and performed entirely therein by residents thereof, without regarding to any provisions relating to choice of laws among different jurisdictions.  Each of the parties irrevocably agrees that any legal action or proceeding arising out of or relating to this Agreement brought by any other party or its successors or assigns shall be brought and determined in the Delaware Court of Chancery and any state appellate court therefrom within the State of Delaware (unless the Delaware Court of Chancery shall decline to accept jurisdiction over a particular matter, in which case, in any federal court within the State of Delaware), and each of the parties hereby irrevocably submits to the exclusive jurisdiction of the aforesaid courts for itself and with respect to its property, generally and unconditionally, with regard to any such action or proceeding arising out of or relating to this Agreement.  Each of the parties agrees not to commence any action, suit or proceeding relating thereto except in the courts described above in Delaware, other than actions in any court of competent jurisdiction to enforce any judgment, decree or award rendered by any such court in Delaware as described herein.  Each of the parties further agrees that notice as provided herein shall constitute sufficient service of process and the parties further waive any argument that such service is insufficient.  Each of the parties hereby irrevocably and unconditionally waives, and agrees not to assert, by way of motion or as a defense, counterclaim or otherwise, in any action or proceeding arising out of or relating to this Agreement or the transactions contemplated hereby, (a) any claim that it is not personally subject to the jurisdiction of the courts in Delaware as described herein for any reason, (b) that it or its property is exempt or immune from jurisdiction of any such court or from any legal process commenced in such courts (whether through service of notice, attachment prior to judgment, attachment in aid of execution of judgment, execution of judgment or otherwise) and (c) that (i) the suit, action or proceeding in any such court is brought in an inconvenient forum, (ii) the venue of such suit, action or proceeding is improper, or (iii) this Agreement, or the subject matter hereof, may not be enforced in or by such courts.

 

8.7                               WAIVER OF JURY TRIAL.  EACH OF THE COMPANY PARTIES AND THE SHAREHOLDER HEREBY IRREVOCABLY WAIVES ALL RIGHTS TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED ON CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THE ACTIONS OF THE COMPANY PARTIES OR THE SHAREHOLDER IN THE NEGOTIATION, ADMINISTRATION, PERFORMANCE AND ENFORCEMENT OF THIS AGREEMENT.

 

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8.8                               Entire Agreement.  This Agreement contains the entire understanding of the parties in respect of the subject matter hereof, and supersedes all prior negotiations and understandings between the parties with respect to such subject matter.

 

8.9                               Counterparts.  This Agreement may be executed in several counterparts, each of which shall be an original, but all of which together shall constitute one and the same agreement.

 

8.10                        Effect of Headings.  The section headings herein are for convenience only and shall not affect the construction of interpretation of this Agreement.

 

8.11                        No Agreement Until Executed.  Irrespective of negotiations among the parties or the exchanging of drafts of this Agreement, this Agreement shall not constitute or be deemed to evidence a contract, agreement, arrangement or understanding between the parties hereto unless and until (i) the Merger Agreement is executed and delivered by all parties thereto, and (ii) this Agreement is executed and delivered by all parties hereto.

 

8.12                        Legal Representation.  This Agreement was negotiated by the parties with the benefit of legal representation and any rule of construction or interpretation otherwise requiring this Agreement to be construed or interpreted against any party shall not apply to any construction or interpretation thereof.

 

8.13                        Expenses.  All costs and expenses incurred in connection with this Agreement shall be paid by the party incurring such cost or expense, whether or not the Merger is consummated.

 

8.14                        Action in Stockholder Capacity Only.  The parties acknowledge and agree that this Agreement is entered into by the Stockholder solely in his capacity as the beneficial owner or record holder of Parent Stock and nothing in this Agreement shall restrict, limit or affect (or require the Stockholder to attempt to restrict, limit or affect) in any respect any actions taken by the Stockholder as a director, trustee, officer or fiduciary of Parent in his, her or its capacity as a director, trustee, officer or fiduciary of Parent.

 

8.15                        Documentation and Information.  The Stockholder consents to and authorizes the publication and disclosure by Parent and the Company of the Stockholder’s identity and holdings of the Parent Stock, and the nature of the Stockholder’s commitments, arrangements and understandings under this Agreement, in any press release or any other disclosure document required in connection with the Merger or any other transaction contemplated by the Merger Agreement. As promptly as reasonably practicable, the Stockholder shall notify Parent and the Company of any required corrections with respect to any written information supplied by the Stockholder specifically for use in any such disclosure document, if and to the extent the Stockholder becomes aware that any have become false or misleading in any material respect.

 

[Signature page follows]

 

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IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed on the date and year first above written.

 

	
 
    	
 
    
	
 
    	
RG PARENT, LLC
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ William   Sweedler
    
	
 
    	
 
    	
Name: William   Sweedler
    
	
 
    	
 
    	
Title: Chairman
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
JOE’S JEANS, INC.
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Hamish Sandhu
    
	
 
    	
 
    	
Name: Hamish   Sandhu
    
	
 
    	
 
    	
Title: CFO
    

 

[Signature Page to Voting Agreement]

 

 

	
 
    	
STOCKHOLDER:
    
	
 
    	
 
    
	
 
    	
/s/ Joseph M.   Dahan
    
	
 
    	
Joseph M. Dahan
    

 

[Signature Page to Voting Agreement]

 

 

SCHEDULE A

 

	
Name
    	
 
    	
Common Stock
    	
 
    
	
Joseph M. Dahan
    	
 
    	
12,022,521
    	
 
    
	
Total:
    	
 
    	
12,022,521Exhibit 10.7

 

SEPARATION AGREEMENT AND MUTUAL LIMITED RELEASE

 

This Separation Agreement and Mutual Release (“Agreement”) is entered into as of September 8, 2015, by and between Joseph M. Dahan (“Dahan”) and Joe’s Jeans Inc. (“Company”) (collectively, the ‘Parties”).

 

RECITALS

 

WHEREAS, Dahan has been employed by the Company pursuant to the Amended and Restated Employment Agreement between Dahan and Innovo Group Inc. effective as of June 25, 2007 (as amended, the “Employment Agreement”);

 

WHEREAS, Dahan’s current renewal term of the Employment Agreement expires on October 25, 2015;

 

Whereas, the Company and Sequential Brands Group, Inc., (“SBGI”) entered into an agreement, dated as of September 8, 2015, pursuant to which SBGI will acquire the “Joe’s Jeans” and related licensed trademarks of the Company and its subsidiaries, and related intellectual property;

 

WHEREAS, the Company and GBG USA Inc. (“GBG”) entered into an Asset Purchase Agreement, dated as of September 8, 2015 (“GBG Purchase Agreement”) pursuant to which GBG will acquire certain assets, employees and the operating business of a subsidiary of the Company conducted under the Joe’s Jeans brand, including inventory, working capital, store leases and certain related assets;

 

WHEREAS, SBGI will license the Joe’s Jeans brand to GBG to manufacture, distribute and sell the premium denim products now manufactured, distributed and sold by the Company;

 

WHEREAS, the Company will terminate Dahan as an employee without Cause as a result of the transactions described above;

 

WHEREAS, Dahan will be entitled to a severance payment as set forth in Section V of the Employment Agreement through October 25, 2015 by reason of a termination by the Company without Cause; and

 

WHEREAS, the Parties mutually desire to confirm their mutual understanding of the future of Dahan’s employment with the Company and bring Dahan’s employment to a smooth closure;

 

NOW, THEREFORE, for good and valuable consideration, the sufficiency of which the Parties acknowledge, the Parties agree as follows:

 

 

AGREEMENT

 

1.              The Company is terminating Dahan’s employment without Cause, including any and all positions he holds with any affiliates of the Company, contingent upon and effective as of the Closing Date (as defined in the GBG Purchase Agreement).  In addition, contingent upon and effective as of the Closing Date, Dahan resigns as a director of the Company.

 

2.              Contingent upon and on the Closing Date, the Company will pay Dahan an amount equal to his Termination Severance (as defined in the Employment Agreement), calculated from the Closing Date through and including October 25, 2015 .

 

3.              Through the Closing Date, Dahan’s employment will continue to be governed pursuant to the terms and conditions of the Employment Agreement, and he will continue to be compensated under the Employment Agreement.

 

4.              Contingent upon and effective as of the Closing Date, the Company and Dahan (the “Releasor” and the “Released Party” with respect to the other party) hereby forever release and discharge one another for and from any and all claims, causes of action, demands, suits, liabilities, fees, costs, expenses, and/or damages of any kind or nature, whether known or unknown, whether accrued or contingent, which Releasor ever had, now has, or hereafter may have against the Released Party with respect to Dahan’s employment by the Company, the terms and conditions of Dahan’s employment, the performance of Dahan’s duties as an employee, or the termination of Dahan’s employment (collectively, “Employment Claims”)by reason of any actual or alleged act, omission, transaction, practice, conduct, statement, occurrence, or other matter up to and including the date of this Agreement, including, but not limited to, Employment Claims arising under any federal, state, local, and/or foreign statutory law, regulatory law, and/or common law.  The Releasor specifically intends this release to be the broadest possible release permitted under law with respect to the Employment Claims.

 

5.              Without limiting the generality of Section 4, above, contingent upon and effective as of the Closing Date, Releasor acknowledges and agrees that the Employment Claims being released hereunder include, but are not limited to, any and all claims for compensation, wages, benefits, commissions, bonuses, royalties, stock options, deferred compensation, vacation pay, sick pay, personal day pay, other monetary or equitable relief, fringe benefits, attorneys’ fees or expenses, or any tangible or intangible property, and any claims under any other laws, regulations, and/or rules applicable to Dahan’s employment, including but not limited to: (i) any and all claims under Title VII of the Civil Rights Act, the Americans with Disabilities Act, the Age Discrimination in Employment Act, the Older Workers Benefit Protection Act, the Civil Rights Act of 1991, the California Civil Code, the California Fair Employment and Housing Act, and all other federal, state, local or foreign law (statutory or decisional) or ordinance prohibiting employment discrimination, harassment, or retaliation, as all such laws may be amended from time to time; (ii) any and all claims under the Employee Retirement Income Security Act, as amended, or any employee benefit plan maintained by the Company; (iii) any and all claims under the Family and Medical Leave Act, the California Family

 

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Rights Act, the Workers Adjustment and Retraining Notification Act, Article 3 of Division 3 of the California Labor Code, and any applicable state, local or foreign equivalent to any of the foregoing laws, as each of such law may be amended from time to time; (iv) any and all claims for breach of contract (express or implied), or tort, including but not limited to all claims of fraud, duress, wrongful or constructive discharge, intentional or negligent misrepresentation, retaliatory discharge, intentional interference with contract, detrimental reliance, defamation, slander, libel, intentional or negligent affliction of emotional distress, and/or claims based on quantum meruit; (v) any and all claims under the Fair Labor Standards Act, the California Labor Code, or any other federal, state, local or foreign laws governing wages, vacation pay, fringe benefits, and obligations of employees, as all such laws may be amended from time to time; (vi) any and all claims for monetary or equitable relief, or compensatory or punitive damages; (vii) any and all other claims (whether based on federal, state, local or foreign law, statutory or decisional) in connection with, relating to, or arising out of Dahan’s employment or the terms and conditions of his employment, including but not limited to the separation or termination of such employment and/or any of the events relating directly or indirectly to such separation or termination; and (viii) any claim for attorneys’ fees, costs, disbursements, or any other amounts; which the Releasor ever had, now has, or hereafter may have against the Released Party by reason of any actual or alleged act, omission, transaction, practice, conduct, statement, occurrence, or other matter up to and including the date of this Agreement.  Releasor represents and warrants that Releasor has not assigned or subrogated any of his or its rights, claims, or causes of action, including but not limited to any claims referenced in this Agreement, nor has he or it authorized any other person or entity to assert any such claim or claims on his or its behalf and agrees to indemnify and hold harmless the Released Party against any such assignment or subrogation of any such rights, claims, and/or causes of action.

 

6.              Notwithstanding anything to the contrary stated in this Agreement, and for the avoidance of doubt, the releases contained in Sections 4 and 5, above, shall not apply to:

 

6.1.                                                    any rights or claims that arise under, or are explicitly preserved by, this Agreement; including without limitation rights or claims under the Employment Agreement preserved by Sections 2 and 3, above, and this Section 6;

 

6.2.                                                    any rights to or claims by Dahan for indemnification or insurance pursuant to (a) the Employment Agreement (including, without limitation, entitlement to coverage under the Company’s directors’ and officers’ insurance policy as set forth in Section XIX of the Employment Agreement), (b) applicable law (including without limitation section 2802 of the California Labor Code); (c) the Company’s certificate of incorporation or bylaws or Company policy; or (d) otherwise pursuant to the governance documents of the Company, or under any separate indemnification agreement the Executive may enter (or may have entered) into from time to time;

 

6.3.                                                    any rights to or claims by Dahan for earned but unpaid compensation, including payment upon termination of employment of all earned and unpaid salary; bonus; and accrued, unused vacation or PTO as set forth in Sections III(A) and (B) of the Employment Agreement or otherwise;

 

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6.4.                                                    any rights to or claims by Dahan for reimbursement of business expenses incurred through the termination of his employment as set forth in Section III.C of the Employment Agreement or otherwise;

 

6.5.                                                    any rights to or claims by Dahan under any employee benefit plan of the Company;

 

6.6.                                                    any rights to or claims by Dahan for worker’s compensation benefits, unemployment insurance benefits; and vested retirement, pension or other benefits;

 

6.7.                                                    the Parties’ obligations to each other under the Agreement dated as of February 18, 2013 by and among the Company, Joe’s Jeans Subsidiary, Inc. and Dahan (“February 2013 Agreement”), including, without limitation, the Company’s obligation to pay Dahan the balance remaining on the Amended Payment Amount (as defined in the February 2013 Agreement); provided, however, that this exception to the release given in this Agreement shall not apply to Paragraph 3 of the February 2013 Agreement, which the Parties hereby mutually release;

 

6.8.                                                    the Parties’ obligations to each other under the Earn Out Subordination Agreement dated as of September 13, 2013, by and among the Company and its affiliates, CIT Group Commercial Services, Inc., Garrison Loan Agency Services LLC and Dahan;

 

6.9.                                                    the Parties’ rights under the Investor Rights Agreement dated as of October 25, 2007 between the Company and Dahan;

 

6.10.                                             Dahan’s rights to his equity interest in the Company;

 

6.11.                                             the Company’s rights to intellectual property as set forth in Section VII of the Employment Agreement; and

 

6.12.                                             Any right or claim that cannot be released under applicable law.

 

7.              Releasor understands and agrees that because this release specifically covers all known and unknown or unanticipated Employment Claims of every kind and character that would otherwise come within the scope of the released claims, Releasor further waives any rights under Section 1542 of the California Civil Code that he or it has with respect to the Employment Claims (if and to the extent California Civil Code applies at all), which states as follows:

 

“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.”

 

Releasor knowingly and voluntarily hereby expressly waives and relinquishes all rights and benefits that he or it may now have, or in the future may have with respect to the Employment Claims, under Section 1542 of the California Civil Code and any law of any jurisdiction of similar effect with respect to his or its respective releases of claims, including unknown claims, they may have against the other.

 

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8.              Releasor represents and warrants that he or it has not filed or caused to be filed any lawsuit, complaint, or charge against the Released Party in any court, any municipal, state, federal, or foreign agency, or any other tribunal.  Releasor agrees that he or it will not, to the fullest extent permitted by law, sue or file a complaint, grievance or demand for arbitration in any forum pursuing any claim released under this Agreement or accept any monetary or other recovery in connection with any charge, complaint, grievance, demand, or other action brought by any other person or entity.  Releasor further expressly waives any claim to any monetary or other damages or any other form of recovery in connection with any proceeding that violates this Agreement.

 

9.              A failure by any party hereto at any time to give notice of any breach by any other party of this Agreement, or to require compliance with any condition or provision of this Agreement shall not (i) be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time or (ii) preclude insistence upon strict compliance in the future.  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.  This Agreement is binding upon, and shall inure to the benefit of Dahan and the Company and their respective heirs, executors, administrators, successors, and assigns.

 

10.       This Agreement shall be construed and enforced in accordance with the laws of the state of California without regard to the principles of conflict of law.  If any provision(s) or clause(s) of this Agreement is found to be invalid or unenforceable under any applicable law, this Agreement shall be considered severable and divisible, and a reviewing court shall have the authority to modify, amend, and/or “blue pencil” the Agreement so as to make it fully valid and enforceable, while maintaining the parties’ original intent to the maximum extent possible.  This Agreement represents the complete understanding between Dahan and the Company with respect to the subject matter of this Agreement and, except as specifically set forth herein, supersedes any and all other written or oral agreements between the Parties pertaining to the subject matter of this Agreement, including without limitation the Employment Agreement.  This Agreement may not be modified orally, and instead may be modified only by a writing signed by both the Company and Dahan after the date on which this Agreement is executed.

 

11.       Within thirty days of submission of documentation by counsel for Dahan (redacted as needed to preserve the attorney-client privilege), the Company agrees to pay for Dahan’s reasonable attorneys’ fees and costs up to a maximum of One Hundred Thousand Dollars ($100,000.00) incurred with respect to obtaining advice and representation with respect to the proposed GBG Purchase Agreement, including without limitation, the negotiation of this Agreement, Dahan’s Employment Agreement with GBG, his Consulting Agreement with SBGI, his Voting Agreement, and related matters.

 

The parties have read and understand this Agreement.

 

[SIGNATURES APPEAR ON THE FOLLOWING PAGE]

 

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JOE’S   JEANS, INC.
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Name:
    	
/s/ Hamish Sandhu
    	
 
    
	
Title: CFO
    	
 
    
	
Date: September 8,   2015
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
/s/ Joseph M. Dahan
    	
 
    
	
JOSEPH M. DAHAN
    	
 
    
	
Date:   September 4, 2015
    	
 
    
			

 

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