Document:

Exhibit 10.1     

PURCHASE AGREEMENT

 

THIS PURCHASE AGREEMENT (this “Agreement”) is made as of August 27, 2021 (the “Effective Date”), by and between TJ&Z Family Limited Partnership, a Minnesota limited partnership (“Seller”), and Image Sensing Systems, Inc., a Minnesota corporation, and its successors or assigns (“Buyer”).

 

In consideration of this Agreement, Seller and Buyer agree as follows:

 

	Sale of Property. Seller agrees to sell to Buyer, and Buyer agrees to buy from Seller, the following property (collectively, “Property”):

 

1.1.          Real Property. The real property located at 1115 Hennepin Avenue, Minneapolis, Minnesota, with a Parcel Number 27-029-24-21-0013, and legally described on Exhibit A (the legal description is subject to modification based on the Title Commitment of the real property described in Section 6.1 hereof) (the “Land”), together with all easements and rights benefiting or appurtenant to the Land, if any (collectively, the “Real Property”).

 

1.2.            Lease. Seller’s interest in that certain Clear Channel Outdoor Lease Agreement dated as of January 1, 2020, by and between Seller and Clear Channel Outdoor, LLC, a Delaware limited liability company (the “Billboard Lease”).

 

1.3.            Records. Seller’s interests in all business records and warranties relating to the Property (collectively, the “Records”).

 

1.4.            Personal Property. All personal property located on the Land (collectively, the “Personal Property”), except the following, which shall be removed by Seller prior to Closing (collectively, the “Excluded Personal Property”):

 

(a)                Items currently in the studio space;

(b)               The sofa and credenza in the upstairs quiet room/office;

(c)                All computers;

(d)               One color copier/scanner/fax;

(e)                All hanging framed art.

 

	Purchase Price and Manner of Payment. The total purchase price (the “Purchase Price”) to be paid for the Property shall be Two Million Fifty Thousand and No/100 Dollars ($2,050,000.00). The Purchase Price shall be payable as follows:

 

2.1.         Within two (2) days after the Effective Date, Buyer shall deposit Fifty Thousand and No/100 Dollars ($50,000.00) as earnest money (“Earnest Money”) to be held in an escrow account with Commercial Partners Title (referred to herein as the “Escrow Agent” or “Title Company”). Upon the expiration of the Inspection Period (as defined herein) the Earnest Money shall become nonrefundable to the Buyer, except as provided for otherwise herein. The Earnest Money, and any interest accrued thereon, shall be applied towards the Purchase Price.

 

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Notwithstanding the foregoing, the Earnest Money, and any interest accrued thereon, that is otherwise nonrefundable or released to Seller under this Agreement shall be promptly refunded to Buyer in the event: (i) Seller defaults and fails to cure such default under this Agreement, (ii) a condemnation or casualty occurs, and Buyer, to the extent permitted by Section 9, timely elects to terminate this Agreement, (iii) a termination pursuant to Sections 6.2.1 or 6.3.1, or (iv) a material change in Seller’s representations and warranties herein occurs, and Buyer, to the extent permitted by Section 8, elects to terminate this Agreement.

 

2.2.            The remainder of the Purchase Price shall be payable by wire transfer of funds on the Closing Date (hereinafter defined), subject to adjustments and prorations as provided herein.

 

	Contingencies. The obligations of Buyer under this Agreement are contingent upon each of the following:

 

3.1.            Seller Performance. Seller shall have provided Buyer all documentation in its possession required to be delivered by Seller pursuant to Section 3.6 of this Agreement, and shall have performed all obligations contained herein in all material respects.

 

3.2.            Representations and Warranties. The representations and warranties of Seller contained in this Agreement must be true in all material respects now and on the Closing Date as if made on the Closing Date.

 

3.3.            Title. Title shall have been found acceptable, or been made acceptable, in accordance with the requirements and terms of Section 6 below.

 

3.4.        Access and Inspection. Buyer shall have sixty (60) days after the Effective Date (the “Inspection Period”) in which to undertake any studies, tests, investigations and inspections of the Property, including, but not limited to: (i) inspection of all physical aspects of the Property, (ii) investigation of all zoning, code and governmental regulations or requirements in place at the Property, (iii) ordering, conducting and reviewing a Phase I Environmental Site Assessment of the Property, at Buyer’s sole cost and expense, and, if necessary, a Phase II Environmental Site Assessment of the Property, (iv) conduct soil, geological or engineering tests and/or studies, (v) assess the architectural feasibility of the Property, and (vi) order and review any Survey. Buyer shall pay all costs of all such studies, tests, investigations and inspections, and shall provide Seller with copies thereof (which may be sent via email) promptly after receipt thereof by Buyer. During the term of this Agreement, Seller shall allow Buyer, and Buyer’s agents, consultants and representatives, upon twenty-four (24) hours prior written notice from the same, immediate access to the Real Property without charge and at all reasonable times for the purpose of Buyer’s investigation and testing the same. To the extent Buyer intends to do any invasive investigation of the Property, Buyer shall obtain Seller’s consent not less than two (2) business days before conducting any investigation on the Property, which consent shall not be unreasonably

 

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withheld. Seller or one of Seller's representatives shall have the right to be present when Buyer or its representative conducts any investigation of the Property.

 

Buyer shall defend, indemnify and hold Seller harmless from and against any and all claims, liabilities, damages, losses, costs and expenses of any kind or nature, including reasonable attorney's fees, resulting from any of Buyer’s investigations of the Property and shall repair to the reasonable satisfaction of Seller any damages resulting from any such investigations, and such obligation shall survive the expiration or termination of this Agreement, provided, however, that Buyer shall not be responsible for any costs, damages, liabilities, losses, expenses, injuries, liens or claims, including, without limitation, attorneys’ fees arising out of any pre- existing adverse physical condition or defect of the Property not caused by Buyer, or its agents, employees or contractors. Seller agrees to provide continuing access to the Property for Buyer and its representatives after the Inspection Period through the Closing Date for purposes of completing Buyer’s financing.

 

3.5.          Document Review. Within fifteen (15) days after the Effective Date, Seller shall deliver to Buyer true and complete copies of the Due Diligence Materials (hereinafter defined) that are within Seller’s possession or control. The “Due Diligence Materials” means all specific documents pertaining to the Property requested by Buyer, including, but not limited to, the documents listed on the attached Exhibit B. Buyer shall have determined, on or before the end of the Inspection Period that it is satisfied with its review and analysis of the Due Diligence Materials. Buyer agrees that any documentation or other information delivered or authored by Seller and provided to Buyer pursuant to this Agreement shall not be distributed to or discussed with any other person except to counsel, lenders or potential lenders, and other advisors of Buyer who have a need to know and agree to maintain such confidentiality.

 

3.6.            Financing. Buyer shall have received, on or before the end of the Inspection Period, the commitments for the financing necessary and sufficient, in Buyer’s sole discretion, to implement Buyer’s plans for and complete the purchase of the Property.

 

If any contingency has not been satisfied on or before the end of the Inspection Period, or if for any reason or no reason on or before the end of the Inspection Period, Buyer elects not to purchase the Property, then this Agreement may be terminated by notice from Buyer to Seller. Upon such termination before the end of the Inspection Period, the Earnest Money, and any interest accrued thereon, shall be released to Buyer and upon return, neither party shall have any further rights or obligations regarding this Agreement or the Property, except for such obligations as expressly survive termination of this Agreement, including those stated in Section 3.5. All the contingencies are specifically for the benefit of the Buyer, and the Buyer shall have the right to waive any contingency by written notice to Seller. Buyer’s failure to timely give any notice of termination of this Agreement pursuant to this Section 3 shall be deemed a waiver of the contingencies and Buyer and Seller shall proceed to Closing. In the event that Buyer has not, on or before the end of the Inspection Period, satisfied itself under Section 3.4 of this Agreement, then Buyer may, by

 

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written notice to Seller, request a mutually acceptable reasonable extension to the Inspection Period, provided that Buyer provides Seller with evidence of its actions to confirm it is proceeding as diligently as possible to get Buyer’s proposed use approved by applicable governmental authorities, and provided Seller agrees to such extension.

 

	Closing. The closing of the purchase and sale contemplated by this Agreement (the “Closing”) shall occur fifteen (15) days following the expiration of the Inspection Period (the “Closing Date”). The Closing shall take place at the office of the Title Company in Minneapolis, Minnesota, or such location agreeable to the parties. Seller agrees to deliver possession of the Property to Buyer on the Closing Date.

 

4.1.            Seller’s Closing Documents. On the Closing Date, Seller shall execute and deliver to Buyer the following (collectively, “Seller’s Closing Documents”), all in form and content reasonably satisfactory to Buyer:

 

4.1.1.      Deed. A Limited Warranty Deed (“Deed”) conveying the Real Property to Buyer, free and clear of all claims, liens, and encumbrances, except the Permitted Encumbrances.

 

4.1.2.      Bill of Sale. A Bill of Sale conveying the Personal Property, except for the Excluded Personal Property, to Buyer, free and clear of all claims, liens and encumbrances.

 

4.1.3.      Assignment of Records. An Assignment of Records conveying Seller’s interest in the Records to Buyer together with the consent of all parties having a right to consent to such assignment, if applicable (the “Assignment of Records”), and original copies or copies of the Records, plus all plans and specifications for the Property, to the extent in Seller’s possession.

 

4.1.4.      Assignment and Assumption of Lease. Assignment and Assumption of Lease (“Assignment and Assumption of Lease”), assigning the Billboard Lease by Seller to Buyer.

 

4.1.5.      Bring Down Certificate. A certificate that the representations and warranties of Seller set forth in this Agreement continue to be true at Closing as if made at such time.

 

4.1.6.      FIRPTA Affidavit. A non-foreign affidavit, properly executed, containing such information as is required by IRC Section 1445(b)(2) and its regulations.

 

4.1.7.      IRS Forms. A Designation Agreement designating the “reporting person” for purposes of completing Internal Revenue Form 1099 and Internal Revenue Form 8594, if applicable.

 

4.1.8.      Well Certificate. A Well Certificate in the form required by law.

 

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4.1.9.      Storage Tanks. If the Property contains or contained a storage tank, an affidavit with respect thereto, as required by Minn. Stat. § 116.48.

 

4.1.10.  Individual Sewage Treatment Systems. If the Property contains an individual sewage treatment system, a disclosure statement as required by Minn. Stat. § 115.55.

 

4.1.11.  Notice to Tenant. Written notice to the tenant under the Billboard Lease advising it of the sale of the Property and directing the tenant to make all future payments of rent and to deliver future notices to Buyer at the address designated by Buyer.

 

4.1.12.  Other Documents. Other documents in Seller’s possession or control that are reasonably determined by Buyer or Title (hereinafter defined) to be necessary to transfer the Property to Buyer in accordance with Seller’s obligations under this Agreement, at no out-of-pocket expense to Seller.

 

4.2.            Buyer’s Closing Documents. On the Closing Date, Buyer will execute and deliver to Seller the following (collectively, “Buyer’s Closing Documents”):

 

4.2.1.      Assignment and Assumption of Lease. The Assignment and Assumption of Lease.

 

4.2.2.      Purchase Price. Funds representing the Purchase Price, by wire transfer and execution or delivery of any required Buyer’s financing documents.

 

4.2.3.      IRS Form. A Designation Agreement designating the “reporting person” for purposes of completing Internal Revenue Form 1099 and Internal Revenue Form 8594, if applicable.

 

4.2.4.      IRS Form W-9. An IRS Form W-9, for use in notifying the tenant under the Billboard Lease of the transfer of ownership of the Property.

 

4.2.5.      Purchaser’s Affidavit. A purchaser’s affidavit in the form acceptable to the Escrow Agent, if necessary.

 

	Prorations. Seller and Buyer agree to the following prorations and allocation of costs regarding this Agreement:

 

5.1.            Title Insurance and Closing Fee. Seller will pay all costs of the Title Commitment (hereinafter defined) and the UCC search. Buyer will pay for the Title Policy (as defined herein) and all additional premiums required for the issuance of the Title Policy, and the Survey. Seller and Buyer will each pay one-half (1/2) of any closing fee or charge imposed by any closing agent or by Title.

 

5.2.            Transfer Tax and Deed Tax; Recording Fees. Seller shall pay all state deed tax payable in connection with this transaction. Seller shall pay the cost of recording all documents necessary to place record title in the condition warranted by Seller in

 

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this Agreement and Buyer will pay the cost of recording the deed conveying the Property to Buyer.

 

5.3.            Mortgage Registry Tax. Buyer shall pay all mortgage registry tax payable in connection with Buyer’s financing.

 

5.4.            Real Estate Taxes and Special Assessments. All real estate taxes and special assessments payable in the years prior to the year in which the Closing occurs shall be paid by Seller. Real estate taxes and special assessments payable in the year in which Closing occurs shall be pro-rated based upon a calendar year based upon the Closing Date. The balance of all levied and pending special assessments against the Property shall be assumed by Buyer.

 

5.5.            Other Costs. All other operating costs of the Property shall be allocated between Seller and Buyer as of the Closing Date, so that Seller pays that part of operating costs payable before the Closing Date, and Buyer pays that part of operating costs payable from and after the Closing Date.

 

5.6.            Billboard Lease Rent. All rent paid or payable in the month of Closing with respect to the Billboard Lease shall be prorated as of the Closing Date.

 

5.7.            Attorneys’ Fees. The parties will pay its own attorneys’ fees, except that a party defaulting under this Agreement or any Seller’s Closing Documents or Buyer’s Closing Documents will pay the reasonable attorneys’ fees and court costs incurred by the non-defaulting party to enforce its rights hereunder.

 

	Title Examination. Title Examination will be conducted as follows:

 

6.1.            Title Evidence. Buyer shall receive the following title evidence (collectively, “Title Evidence”) for the Property: (a) a commitment (“Title Commitment”) for an extended ALTA Form 2006 Owner’s Policy of Title Insurance (“Title Policy”) insuring title to the Real Property, deleting standard exceptions and including affirmative insurance regarding zoning, contiguity, appurtenant easements and such other matters as may be identified by Buyer, in the amount of the Purchase Price, issued by the Title Company; (b) at Buyer’s option, an ALTA survey, paid for by the Buyer, prepared by a registered land surveyor and certified to Buyer and Buyer’s lender(s), if any, showing the Real Property and location of all buildings and easements thereon and such other information and containing such matters as Buyer or Buyer’s lender(s) shall reasonably request (the “Survey”); and (c) UCC searches against Seller by name and the Property. If Buyer desires a Survey, Buyer shall order the same within ten (10) days after the Effective Date.

 

6.2.            Buyer’s Objections. Within ten (10) business days after receiving the last of the Title Evidence, but no later than forty (40) days after the Effective Date, Buyer will make written objections (“Objections”) to the form and/or contents of the Title Evidence. Buyer’s failure to make Objections within such time period will constitute waiver of Objections. Buyer shall be deemed to have automatically made

 

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Objections to any mandatory cure items set forth in Section 6.4. Any matter shown on such Title Evidence and not objected to by Buyer shall be a “Permitted Encumbrance” hereunder. Seller will have until twenty (20) days after receipt of the Objections to cure the Objections or agree to cure monetary objections at Closing. If the Objections are not cured within such twenty (20) day period, Buyer will have the option to do one of the following:

 

6.2.1.      Terminate this Agreement by written notice to Seller (without either party being deemed at fault) and receive a full refund of all Earnest Money and the interest accrued and unpaid thereon, if any; or

 

6.2.2.      Inform Seller that it intends to extend the period for Seller to cure the Objections for an additional twenty (20) day period; or

 

6.2.3.      Waive the Objections and proceed to Closing.

 

6.3.            Extension of Cure Period. If Buyer delivers notice to Seller pursuant to Section

6.2.2 that it intends to extend the period for Seller to cure the Objections, then Seller, subject to the same conditions as set forth in Section 6.2, shall have an additional twenty (20) day period to cure the Objections. If the Objections are not cured within such twenty (20) day period, Buyer shall have the option to do either of the following:

 

6.3.1.      Terminate this Agreement by written notice to Seller (without either party being deemed at fault) and receive a full refund of all Earnest Money and the interest accrued and unpaid thereon, if any; or

 

6.3.2.      Waive the Objections and proceed to Closing.

 

6.4.            Mandatory Cure Items. Notwithstanding the foregoing, Seller shall: (i) agree to pay-off or discharge any mortgage, judgment or lien created by or resulting from any act or omission of Seller at or prior to Closing, and; (ii) agree to pay-off, bond or otherwise cause to be discharged of record prior to Closing in a manner reasonably satisfactory to Buyer and the Title Company any mechanic’s lien resulting from any act or omission of Seller or its agent.

 

	Operation Prior to Closing. During the period from the date of Seller’s acceptance of this Agreement to the Closing Date (the “Executory Period”), Seller shall operate and maintain the Property in the ordinary course of business in accordance with prudent, reasonable business standards. Seller shall execute no contracts, leases or other agreements regarding the Property during the Executory Period that are not terminable on or before the Closing Date, without the prior written consent of Buyer, which consent may be withheld by Buyer at its sole discretion. During the term of this Agreement Seller shall not enter into any agreements with any third parties for the sale of the Property.

 

	Representations and Warranties by Seller. Seller represents and warrants to Buyer as follows:

 

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8.1.            Authority. Seller is a limited partnership duly organized and validly existing in good standing under the laws of Minnesota. Seller represents it: (i) is the fee simple owner of the Property, (ii) has the full power and authority to enter into and perform this Agreement and Seller’s Closing Documents and (iii) can incur and perform the obligations hereunder.

 

8.2.            Contracts. Seller has made available to Buyer, to the extent they exist, and are in Seller’s possession or control, a correct and complete copy of any service contract and its amendments which will survive a closing hereunder.

 

8.3.            Billboard Lease. The Billboard Lease is in full force, and neither Seller nor, to Seller’s actual knowledge, the tenant is in default under the Billboard Lease. There are no other leases or possessory rights of others regarding the Real Property. All obligations of Seller under the Billboard Lease have been performed, completed, and paid for. As of the Effective Date: (i) the Billboard Lease has not been amended, modified or terminated (except for any amendments delivered to Buyer pursuant to this Agreement), (ii) all rent and any and all other amounts due under the Billboard Lease has been paid to a current date and the tenant has not prepaid rent by more than thirty (30) days, (iii) there are no leasing commissions owing or which may become payable with respect to the Billboard Lease, (iv) the tenant has not notified Seller, as landlord, of any default by Seller pursuant to the Billboard Lease that remains uncured nor has such tenant asserted any offsets, defenses or claims against Seller, and (v) tenant has not made any request to Landlord for any rent reductions or other concessions under the Billboard Lease.

 

8.4.           Operations. Seller has received no written notice of actual or threatened cancellation or suspension of any utility services of the Real Property. Seller has received no notice of actual or threatened special assessments or reassessments of the Real Property, however, Seller has received notice of assessments for Hennepin Avenue improvements and annual Downtown Improvement District. To the best of Seller’s knowledge, Seller is not in default concerning any of its obligations or liabilities regarding the Real Property pursuant to any written contracts with a non- governmental party.

 

8.5.       Environmental Laws. To the best of Seller’s knowledge, except as identified in any Due Diligence Materials, Seller has received no written notice that toxic or hazardous substances or wastes, pollutants or contaminants (including, without limitation, asbestos, urea formaldehyde, the group of organic compounds known as polychlorinated biphenyls, petroleum products including gasoline, fuel oil, crude oil and various constituents of such products, and any hazardous substance as defined in any state, local or federal law, regulation, rule, policy or order relating to the protection of the environment) (collectively, “Hazardous Substance”) have been generated, treated, stored, transferred from, released or disposed of, or otherwise placed, deposited in or located on the Property, nor that any activity has been undertaken on the Property that would cause or contribute to the Property becoming a treatment, storage or disposal facility within the meaning of, or

 

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otherwise bring the Property within the ambit of, any state, local or federal law, regulation, rule, policy or order relating to the protection of the environment.

 

8.6.            FIRPTA. Seller is not a “foreign person”, “foreign partnership”, “foreign trust” or “foreign estate”, as those terms are defined in Section 1445 of the Internal Revenue Code.

 

8.7.            Wells and Individual Sewage Treatment Systems. Seller represents that, to Seller’s knowledge, there is not: (i) a “Well” on the described Property within the meaning of Minn. Stat. § 103I and (ii) an “Individual Sewage Treatment Systems” on the described Property within the meaning of Minn. Stat. § 115.55. Sewage goes to a facility permitted by the Minnesota Pollution Control Agency. The representations in this Section are intended to satisfy the requirements of the statutes referenced herein.

 

8.8.            Storage Tanks. To the best of Seller’s knowledge, without inquiry, no above ground or underground tanks are located in or about the Property, or have been located under, in or about the Property and have subsequently been removed or filled.

 

8.9.            No Conflict or Lien. Neither the execution or delivery of this Agreement nor the consummation of the transaction as contemplated herein will conflict with or result in a breach of any contract, license or undertaking to which Seller is a party or by which any of its property is bound, or constitute a default thereunder or result in the creation of any lien or encumbrance upon the Property.

 

8.10.      No Proceedings. There are no legal or administrative proceedings pending, nor to the best of Seller’s knowledge, threatened, against Seller which would adversely affect its right to convey the Real Property to Buyer as contemplated in this Agreement. There are no condemnation or eminent domain proceedings pending, nor to the best of Seller’s knowledge, threatened, with respect to the Real Property and there are no legal or administrative proceedings pending or threatened affecting the Real Property.

 

8.11.        Utilities. To the best of Seller’s knowledge, water, gas, telephone, electricity and sanitary sewer utilities are currently available on or near the Real Property.

 

8.12.        Unpaid Labor and Materials. Seller represents and warrants that Seller is not indebted for labor or material that might give rise to the filing of notice of mechanic’s lien against the Property.

 

8.13.        No Third Party Options. There are no options or rights to purchase, right of first refusal to purchase, or letters of intent (other than with Buyer) to purchase any or all of the Property.

 

8.14.        Methamphetamine. To the best of Seller’s knowledge, methamphetamine production has not occurred on the Real Property.

 

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8.15.        Violations. Seller has not received written notice of any federal, state, local, or other governmental building, zoning, health, safety, law, ordinance, or regulation violation with respect to the Real Property, that has not been cured, other than notice from a state agency concerning elevator repairs.

 

8.16.        Patriot Act. Neither Seller nor any of its affiliated entities is in violation of any laws relating to terrorism or money laundering (“Anti-Terrorism Laws”), including Executive Order No. 13224 on Terrorist Financing, effective September 24, 2001 (the “Executive Order”), and the United and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001, Public Law No. 107-56. Neither Seller, nor, to the knowledge of Seller, any of its brokers or other agents acting in any capacity in connection with the sale of the Property: (i) deals in, or otherwise engages in any transaction relating to, any property or interests in property blocked pursuant to the Executive Order; or (iii) engages in or conspires to engage in any transaction that evades or avoids, or has the purpose of evading or avoiding, or attempts to violate, any of the prohibitions set forth in any Anti-Terrorism Law.

 

Any representations made “to the best of Seller’s knowledge” shall be limited to the actual, subjective knowledge of Terry Gahan. All representations and warranties by Seller under this Agreement shall be modified to reflect information reported in any investigation hereafter made by or on behalf of Buyer or Seller, as the case may be, or any knowledge of Buyer or Seller, as the case may be, which first becomes known to Buyer or Seller after the Effective Date, provided, however, that if any resulting material changes in the representations or warranties of Seller are unacceptable to Buyer, Buyer may terminate this Agreement and the Earnest Money shall be refunded to Buyer. Seller will indemnify Buyer, its successors and assigns, against, and will hold Buyer, its successors and assigns, harmless from, any damages, including reasonable attorney’s fees, excluding consequential damages, that Buyer incurs if any of the above representations and warranties by Seller is discovered to have been untrue or inaccurate as of the Closing Date. Consummation of this Agreement by Buyer with knowledge of any such breach by Seller will constitute a waiver or release by Buyer of any claims due to such breach.

 

The representations, warranties, and indemnification set forth above shall survive the Closing of this transaction and Seller’s delivery of the Deed for a period of six (6) months after the Date of Closing.

 

	Casualty; Condemnation. If all or any part of the Property is substantially damaged by fire, casualty, the elements or any other cause, Seller shall immediately give notice to Buyer, and Buyer shall have the right to terminate this Agreement and receive back all Earnest Money by giving notice within thirty (30) days after Seller’s notice. To constitute “substantial” damage, the cost to repair or restore, as estimated by Seller, shall exceed

$200,000.00. If Buyer shall fail to give the notice, then the parties shall proceed to Closing, and Seller shall assign to Buyer all rights to insurance proceeds resulting from such event, and the Purchase Price shall be reduced by the deductible. If eminent domain proceedings are threatened or commenced against all or any part of the Property, Seller shall immediately give notice to Buyer, and Buyer shall have the right to terminate this

 

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Agreement and receive back all Earnest Money by giving notice within thirty (30) days after Seller’s notice. If Buyer shall fail to give the notice, then the parties shall proceed to Closing, and Seller shall assign to Buyer all rights to appear in and receive any award from such proceedings.

 

	Broker’s Commission. If a Closing occurs, Seller will pay a brokerage commission to Cresa Minneapolis, Inc., equal to three percent (3%) of the Purchase Price. Seller has employed Newmark (Steve Shepherd) as its listing agent for the sale of Property. Except as described herein, Seller and Buyer represent to each other that they have dealt with no other brokers, finders or the like in connection with this transaction, and agree to indemnify and hold each other harmless from all claims, damages, costs or expenses of or for any other such fees or commissions resulting from their actions or agreements regarding the execution or performance of this Agreement, and will pay all costs of defending any action or lawsuit brought to recover any such fees or commissions incurred by the other party, including reasonable attorneys’ fees. Buyer and Seller shall each be obligated for the payment of their respective broker and legal fees, unless provided for to the contrary herein.

 

	Assignment. Seller may not assign or otherwise transfer any of its rights under this Agreement. Except as provided below in this Section, Buyer may not assign or otherwise transfer all or any of its rights under this Agreement without the prior written consent of Seller. No assignment shall relieve Buyer of its obligations under this Agreement. Notwithstanding anything to the contrary in this Agreement, Buyer shall have the right in its sole discretion, at any time prior to or on the Closing Date, to (i) assign all of its interest in and to this Agreement to an affiliate of Buyer; or (ii) establish a separate entity to acquire or hold title to the Property and to assign all of its interest in and to this Agreement to such entity for such purpose; provided, however, that no such assignment shall release Buyer from any liabilities to Seller under this Agreement and such liabilities shall constitute joint and several liabilities of Buyer and its assignee.

 

	As-Is. Except as expressly set forth in Section 8 of this Agreement and in the Seller’s Closing Documents, Buyer acknowledges and agrees that Buyer is purchasing the Property from Seller in its “As-Is, Where-Is” condition “with all faults” as of the Closing Date and specifically and expressly without warranties, representations, guarantee, either express or implied as to its condition, fitness for any particular purpose, merchantability, or any other warranty of any kind, nature or type whatsoever from or on behalf of Seller. Buyer hereby acknowledges that it is relying solely upon its own inspection and investigation and not upon any representation or warranty by Seller (except to the extent otherwise expressly set forth in Section 8 of this Agreement and the Seller’s Closing Documents) in electing to execute and deliver this Agreement and consummate the transaction and as to all matters related to the Property including, without limitation, zoning, access, availability and adequacy of utilities, state of title, feasibility and legality of any intended use, legal compliance, value, marketability, the environmental and other condition thereof, acreage, size and condition of the improvements and absence of encroachments, gaps or gores.

 

	Notices. Any notice required or permitted hereunder shall be given by personal delivery upon an authorized representative of a party hereto; or if mailed in a sealed wrapper by United States registered or certified mail, return receipt requested, postage prepaid; or if

 

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transmitted by electronic mail with return receipt requested; or if deposited cost paid with a nationally recognized, reputable overnight courier, properly addressed as follows:

 

If to Buyer:

 

Image Sensing Systems, Inc.

1600 University Avenue, Suite 400 St. Paul, MN 55104

Attention: Frank Hallowell

Email: fhallowell@imagesensing.com

 

With Copy to:

 

Winthrop & Weinstine, P.A. Capella Tower, Suite 3500 225 South Sixth Street Minneapolis, MN 55402 Attn: Trina Sjoberg

Email: tsjoberg@winthrop.com

 

If to Seller:

 

TJ&Z Family Limited Partnership 4846 Thomas Avenue South Minneapolis, MN 55410

Attn: Terry Gahan

Email: tgahan@mnpubs.com

 

With Copy to:

 

Malkerson Gunn Martin LLP 5353 Gamble Drive, Suite 225

Minneapolis, MN 55416 Attention: Gregory D. Soule, Esq. Email: gds@mgmllp.com

 

Notices shall be deemed effective on the earlier of the date of receipt or the date of deposit, as aforesaid; provided, however, that if notice is given by deposit, the time for response to any notice by the other party shall commence to run one business day after any such deposit. Any party may change its address for the service of notice by giving notice of such change ten (10) days prior to the effective date of such change. Electronic mail shall also be a valid method of providing notice hereunder.

 

	Default.

 

14.1.        By Seller. If Seller fails to fully and timely perform any of its obligations hereunder, and such failure continues for thirty (30) days after receipt of written

 

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notice from Buyer, or if the Closing shall not occur by reason of default by Seller, then Buyer, as its sole and exclusive remedy, may, at its option, either: (a) terminate this Agreement by written notice delivered to Seller and Buyer within thirty (30) days of the expiration of such cure period and may recover its Earnest Money; or

(b) enforce specific performance of this Agreement; provided, however, that any action for specific performance must be commenced within six (6) months of the default date, and if no such action has been brought by this date, the right to bring such an action shall be deemed to have been waived by Buyer. Subject to the time limits stated in the previous sentence, no delay or omission in the exercise of any right or remedy accruing to Buyer upon a breach by Seller under this Agreement shall impair such right or remedy or be construed as a waiver of any such breach theretofore or thereafter occurring. The waiver by Buyer of any condition or the breach of any other term, covenant or condition herein contained shall not be deemed to be a waiver of any other condition or of any subsequent breach of the same or of any other term, covenant or condition herein contained. Seller’s obligations under this Section 14.1 shall survive termination of this Agreement.

 

14.2.        By Buyer. If Buyer fails to fully perform any of its obligations hereunder, Seller may, as its sole and exclusive remedy, proceed with cancellation of this Purchase Agreement pursuant to the provisions of Minnesota Statutes Section 559.21. Upon expiration of the thirty (30) day cancellation period referenced in the statute without Buyer having complied with the conditions set forth in the statutory notice of cancellation and delivery of proof to that effect to the Title Company, Seller may retain the Earnest Money from the Title Company as liquidated damages. In no event will Seller be entitled to sue Buyer for specific performance or damages, other than for Buyer’s breach of its obligations pursuant to Section 3.5 hereof. No delay or omission in the exercise of any right or remedy accruing to Seller upon any breach by Buyer under this Agreement shall impair such right or remedy or be construed as a waiver of any such breach theretofore or thereafter occurring. The waiver by Seller of any condition or of the breach of any other term, covenant or condition herein contained shall not be deemed to be a waiver of any other condition or of any subsequent breach of the same or of any other term, covenant or condition herein contained.

 

	Confidentiality. Buyer and Seller acknowledge the confidential nature of this transaction and agree not to disclose the terms of this Agreement or share any of the terms described herein to any other parties other than employees, agents, consultants and lawyers, etc. working on behalf of the parties to this Agreement and bona fide third party institutional lenders who are or may be engaged to provide financing to a party to this Agreement. The foregoing sentence shall not apply to information that the recipient of the information who is a party to this Agreement is required to disclose by any applicable law, regulation, legal or regulatory process, or the applicable rules and regulations of any national securities exchange or the Securities and Exchange Commission.

 

	Miscellaneous. The paragraph headings or captions appearing in this Agreement are for convenience only, are not a part of this Agreement, and are not to be considered in interpreting this Agreement. This written Agreement constitutes the complete agreement

 

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between the parties and supersedes any prior oral or written agreements between the parties regarding the Property. There are no verbal agreements that change this Agreement, and no waiver of any of its terms will be effective unless in a writing executed by the parties. This Agreement binds and benefits the parties and their successors and assigns. This Agreement has been made under the laws of the State of Minnesota and such laws will control its interpretation. Time is of the essence. If the time for performance of any act, giving of notice, or making any payment falls on a Saturday, Sunday, or legal holiday, such time for performance shall be extended to the next business day.

 

	Signatures in Counterpart. The undersigned agree that this instrument may be signed in any number of counterparts, each of which will constitute an original, and that a facsimile copy of any signature, or an electronic pdf transmission of any signature, of any party, will be deemed as enforceable and effective as an original signature. All such counterparts together will constitute one and the same instrument.

 

	Exclusivity. Seller agrees not to market or show the Property, or engage in negotiations with or submit offers or counteroffers, to any other prospective purchasers, brokers or agents during the term of this Agreement.

 

[The remainder of this page has been left blank intentionally.]

 

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IN WITNESS WHEREOF, Seller and Buyer have executed this Agreement as of the date first written above.

 

 

SELLER:

 

TJ&Z FAMILY LIMITED

PARTNERSHIP, a Minnesota limited partnership

 

	
	/s/ Terry Gahan
	Name:	Terry Gahan
	Its:	Owner

 

 

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IN WITNESS WHEREOF, Seller and Buyer have executed this Agreement as of the date first written above.

 

 

BUYER:

 

IMAGE SENSING SYSTEMS, INC., a

Minnesota corporation

 

	
	/s/ Frank G. Hallowell
	Name:	Frank G. Hallowell
	Its:	Chief Financial Officer

 

 

	16

EXHIBIT A

 

(Legal Description)

 

 

 

Torrens Property

 

 

Northeasterly 46 feet of Lot 40, Auditor’s Subdivision No. 30, Hennepin County, Minnesota, except that part taken for Hennepin Avenue and except alley.

 

 

(Approximate legal description to be replaced with legal description listed on title insurance commitment.)

 

	17

EXHIBIT B

 

 

 Facilities

SELLER DUE DILIGENCE MATERIALS

 

(IF IN SELLER'S POSSESSION OR CONTROL)

 

	A list of all contractors/vendors currently used for service at the Property (electrical, fire alarm, fire sprinkler, boilers, plumbing, HVAC, signs, etc.)
	Billboard Lease
	Current written maintenance contracts
	Manufacture and subcontractor warranties and guarantees (roof, exterior building walls, sealant, windows, etc.)
	Accounting records of management expenses for 2019, 2020 and 2021 year to date
	Current building insurance policy and information on any claims filed in 2019, 2020 and 2021 to date
	Existing title policy
	Existing ALTA and/or boundary survey
	Schedule (including contact information and account numbers) of all utility providers (water, sewer, cable, electricity, gas, telephone, etc.)
	Phase I and Phase II Environmental Studies and any other environmental reports (including information regarding underground fuel storage tanks)
	Site/Civil, architectural and engineering plans, including mechanical, electrical and plumbing plans 
	Geotechnical information or studies, including soil reports
	Documentation or plans related to wetlands, water-related setbacks, restrictions of uses including Order of Conditions, certificates of compliance, violation notices or other items
	Traffic or curb cut information, including restrictions on access
	Documentation related to historic use and restrictions 
	Permits and approvals
	Utility invoices

 

	Building insurance policy and information on any claims in the last three (3) years

	Notices of special assessments, including for Hennepin Avenue improvements and annual Downtown Improvement District.

 

	Notice from a state agency concerning elevator repairs.

	18le-ex102_130.htm

 

			
	
 
	
 
	
EXHIBIT 10.2

 

EXECUTION VERSION

 

			
	
 
	
EXECUTIVE SEVERANCE AGREEMENT
	
 

 

This Executive Severance Agreement (“Agreement”) is made effective as of the 19th day of December, 2016 (the “Effective Date”), between Lands’ End, Inc., a Delaware corporation (together with its successors, assigns and Affiliates, the “Company”), and Jerome S. Griffith (“Executive”).

 

WHEREAS, in light of the Company’s size and its visibility as a publicly traded company that reports its results to the public, the Company has attracted the attention of other companies and businesses seeking to obtain for themselves or their customers some of the Company’s business acumen and know-how; ; and

 

WHEREAS, the Company and Executive have entered into an employment letter agreement dated December 19th, 2016 (the “Employment Letter”), pursuant to which the Company has agreed to employ Executive commencing on March 6, 2017 (the “Start Date”) on the terms and conditions contained in the Employment Letter, which includes Executive entering into this Agreement, and Executive has agreed to accept such employment on such terms and conditions, including those obligations contained in this Agreement; and

 

WHEREAS, the Company shall, in connection with Executive commencing employment with the Company, share with Executive certain aspects of its business acumen and know-how as well as specific confidential and proprietary information about the products, markets, processes, costs, developments, ideas, and personnel of the Company; and

 

 

 

W/2821687v6

 

 

 

 

WHEREAS, the Company shall, in connection with Executive commencing employment with the Company, imbue Executive with certain aspects of the goodwill that the Company has developed with its customers, vendors, representatives and employees; and

 

WHEREAS, in consideration for Executive commencing employment with the Company and entering into this Agreement, the Company is extending to Executive the opportunity to receive severance benefits under certain circumstances as provided in this Agreement.

 

NOW, THEREFORE, in consideration of the foregoing, and of the respective covenants and agreements of the parties set forth in this Agreement, the parties hereto agree as follows:

 

1.Definitions. As used in this Agreement, the following terms have the meanings indicated (but if not otherwise defined herein, capitalized terms as used in this Agreement will have the meanings indicated in the Employment Letter):

 

a.“Accrued Accounts” means (i) unpaid base salary, accrued but unused vacation and expense reimbursements due, which shall be paid promptly after Executive’s Separation from Service, amounts due under any benefit or equity plan, grant or program, paid in accordance with the terms of such plan, grant or program, and any unpaid bonus for any prior completed fiscal year paid when the bonus would otherwise be paid for such prior fiscal year (which, for the avoidance of doubt, shall not be paid in duplication of the same or any similar obligations under any other arrangement) and (iv) to the extent that a Qualifying Termination occurs within the last six calendar months of a given fiscal year, a

 

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pro rata bonus that would otherwise be payable under the Company’s Annual Incentive Plan for such fiscal year based on actual results from the fiscal year, multiplied by the ratio of the number of days employed during such fiscal year to the number of days in the year, and paid when bonuses are otherwise paid under the Annual Incentive Plan for such fiscal year (but in no event later than April 15 following the end of such fiscal year).

 

b.“Affiliate” means any subsidiary or other entity that, directly or indirectly through one or more intermediaries, is controlled by Lands’ End, Inc., whether now existing or hereafter formed or acquired. For purposes hereof, “control” means the power to vote or direct the voting of sufficient securities or other interests to elect one-third of the directors or managers or to control the management of such subsidiary or other entity.

 

c.“Annual Bonus” shall mean (i) the average bonus (annualized for any partial fiscal year) paid (if any) to Executive under the Company’s Annual Incentive Plan in the last two consecutive completed fiscal years ending prior to the Date of Termination, provided that, Executive’s Target Annual bonus shall be used for either of the fiscal years beginning in each of January 2017 and 2018 to the extent the Date of Termination occurs prior to the date that annual bonuses for the applicable fiscal year has been determined (and, if payable, paid) in respect of both years or (ii) if payment under this Agreement is being triggered upon a Change in Control Termination, Annual Bonus shall for this purpose mean the higher of the applicable amount determined under clause (i) of this definition and the Executive’s Target Annual Bonus.

 

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d.“Cause” means (i) a material breach by Executive (other than a breach resulting from Executive’s incapacity due to a condition that with the passing of time would be a Disability) of Executive’s duties and responsibilities which breach is demonstrably willful and deliberate on Executive’s part, is committed in bad faith or without reasonable belief that such breach is in the best interests of the Company and is not remedied in a reasonable period of time after receipt of written notice from the Board specifying such breach; (ii) the indictment and conviction of, or pleading of guilty or nolo contendere by, Executive to a felony; or (iii) willful misconduct in connection with Executive’s employment.

 

e.“Change in Control” shall have the meanings such term in the Company’s 2014 stock plan.

 

f.“Change in Control Termination” means a Qualifying Termination occurring either (i) within 180 calendar days prior to a Change in Control, so long as a definitive agreement pursuant to which transactions contemplated thereunder would result in a Change in Control, has been executed by the Company prior to such Date of Termination or (ii) on or with two (2) years after a Change in Control occurs.

 

g.“Code” means the Internal Revenue Code of 1986, as amended.

 

h.“Competitive Business” means any corporation, partnership, association, or other person or entity (including but not limited to Executive) that:

 

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i.is listed on Appendix A or is otherwise included in the Company’s annual proxy statement (the “Proxy”) as most recently filed prior to the Date of Termination, each of which Executive acknowledges is a Competitive Business, whether or not it falls within the categories in subsection (c)(ii) immediately below; or

 

ii.engages in any business which, at any time during the most recent eighteen (18) months of Executive’s Company Employment and regardless of the business format (including but not limited to a department store, specialty store, discount store, direct marketing, or electronic commerce): (A) consists of marketing, manufacturing or selling apparel and/or home products that are material products of the Company, at a price point similar to that of the Company and which entity has a combined annual revenue in excess of $250 million that is primarily generated by any combination of the products described above ; and (B) the Board of Directors of the Company (the “Board”) (or a designated committee thereof) reasonably identifies and adds to Appendix A by written notice to Executive at least ninety (90) days prior to the Date of Termination (provided that the Company’s filing of the Proxy with the Securities and Exchange Commission shall constitute valid notice to Executive of any such identification or addition regardless of whether such filing occurs at least ninety (90) days prior to the Date of Termination).

 

Notwithstanding the foregoing, in no event shall “Competitive Business” include (A) any activity in which Executive proposes to engage, to which 

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the Board provides its written consent to Executive, not to be unreasonably withheld; or (B) services by Executive as an advisor to any private equity firm, so long as Executive is providing strategic investment and management advice (including on an acquisition, but excluding for the avoidance of doubt, advising in respect of any company that would otherwise meet the definition of a Competitive Business already in, or once it becomes a part of, the private equity firm portfolio) in the area of apparel and/or home products generally and is not otherwise sharing Confidential Information or providing advice and/or guidance to any entity listed as a Competitive Business as referenced in subparagraphs i. and ii. above.

 

i.“Confidential Information” means information related to the Company’s business, not generally known in the trade or industry, which Executive learns or creates during the period of Executive’s Company Employment, which may include but is not limited to product specifications, manufacturing procedures, methods, equipment, compositions, technology, formulas, know-how, research and development programs, sales methods, customer lists, customer usages and requirements, personnel evaluations and compensation data, computer programs and other confidential technical or business information and data that is not otherwise in the public domain.

 

j.“Disability” means disability as defined under the Company’s long-term disability plan (regardless of whether Executive is a participant under

 

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such plan), including the completion of any time period required for full coverage under such plan.

 

k.“Executive’s Company Employment” means the time during which Executive is employed by any entity comprised within the definition of “Company,” regardless of any change in the entity actually employing Executive.

 

l.“Good Reason” shall mean, without Executive’s prior written consent, (i) a reduction of more than ten percent (10%) from the highest prior level of either the Executive’s annual rate of base salary or Target Annual Bonus under the Company’s Annual Incentive Plan (and for the avoidance of doubt, any reduction that is equal to or less than such 10% amount may only occur to the extent in connection with a general reduction of annual rate of base salary that applies proportionately to all executive officers); (ii) Executive’s mandatory relocation to an office more than fifty (50) miles from the primary location at which Executive was required to perform Executive’s duties prior to such relocation; (iii) Executive is no longer the principal executive officer of the Company; (iv) a material diminution in Executive’s duties, responsibilities or authority, or the assignment of duties or responsibilities materially inconsistent with Executive’s position as principal executive officer of the Company (which shall be presumed to occur if Executive ceases to report directly to the Board); (v) any time that ESL Investments, Inc. and its affiliate entities beneficially own more than twenty percent (20%) of the Company’s shares entitled to vote for directors, and they, in whole or in part, vote against Executive’s reelection to the Board while Executive is serving as the Chief Executive Officer of the Company; or (vi) any

 

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other action or inaction that constitutes a material breach of the terms of the Employment Letter, including the failure of a successor company to assume or fulfill the obligations under the Employment Letter or this Agreement. In each case, Executive must provide Company with written notice of the facts giving rise to a claim that “Good Reason” exists for purposes of this Agreement, within sixty (60) days of the initial existence of such Good Reason event, and Company shall have the right to remedy such event within thirty (30) days after receipt of Executive’s written notice. “Good Reason” shall cease to exist, and may not form the basis for claiming any compensation or benefits under this Agreement, if any of the following occurs:

 

i.Executive fails to provide the above-referenced written notice of the Good Reason event within sixty (60) days of its occurrence;

 

ii.Company remedies the Good Reason event within the above-referenced thirty (30) day remediation period; or

 

iii.Executive fails to resign within fifteen (15) days after the above-referenced thirty (30) day remediation period.

 

m.“Qualifying Termination” means the first to occur of a termination of the Executive’s Company Employment by the Company without Cause or by Executive upon his resignation for Good Reason, in any such case in accordance with the applicable procedural provisions set forth in this Agreement.

 

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n.“Restricted Period” means (i) twenty-four (24) months following the Date of Termination that corresponds to any Separation from Service described in Section 2(a) below or (ii) twelve (12) months following the Date of Termination that corresponds to any Separation from Service not described in Section 2(a) below. Notwithstanding any provision of this Agreement to the contrary, on and after the first anniversary of a Qualifying Termination, Executive may elect, by written notice to the Company, to (a) forfeit all rights to the payments and benefits otherwise to be provided under Section 2 of this Agreement between and including the date on which Executive commences engaging in activity that would, but for this provision, constitute a breach of Section 8 of this Agreement (such date to be specified in such notice, the “Forfeiture Date”)) through the end of the Salary Continuation Period and (b) reimburse the Company, in an amount in cash equal to the prorata portion of the value of the portion of the Sign-On Awards (as such term is defined in the Employment Letter) that became vested in accordance with the terms of the applicable Sign-On Award grant agreements as of Executive’s Date of Termination, with such amount equal to the product of (i) the sum of (x) the net after-tax amount on Executive’s Date of Termination of the shares of Company common stock delivered to Executive in settlement of the Sign-on RSUs (as such term is defined in the Employment Letter) that became vested in accordance with the terms of the applicable Sign-On RSU grant agreement as of Executive’s Date of Termination plus (y) the net after-tax amount that Executive would have realized on the Date of Termination in respect of the Sign-On Options assuming

 

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that, as of Executive’s Date of Termination, Executive had exercised in full all Sign-On Options (as such term is defined in the Employment Letter) and (ii) a fraction, equal to (x) the number of calendar days remaining between and including the Forfeiture Date through the end of the Salary Continuation Period, divided by (y) the number of days in the Salary Continuation Period, and upon such forfeiture and reimbursement, the restrictions imposed on Executive under Section 8 of this Agreement shall cease to apply to Executive as of the Forfeiture Date.

 

o.“Salary Continuation” means the sum of monthly base salary, based on Executive’s highest monthly base salary rate prior to the date Executive’s Company Employment terminates (“Date of Termination”) and one- twelfth of Executive’s Annual Bonus payable for a period of twenty-four (24) months following the Date of Termination (“Salary Continuation Period”), provided that, if the event giving rise to payment of Salary Continuation is a Change in Control Termination, such period shall be thirty (30) months.

 

p.“Section 409A Threshold” means an amount equal to the sum of the following amounts: (x) two times the lesser of (1) Executive’s base salary for services provided to the Company as an employee for the calendar year preceding the calendar year in which Executive has a Separation from Service; and (2) the maximum amount that may be taken into account under a qualified plan in accordance with Code Section 401(a)(17) for the calendar year in which the Executive has a Separation from Service, and (y) the amount of Executive’s Salary Continuation that does not otherwise provide for a deferral of

 

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compensation by application of Treasury Regulation Section 1.409A-1(b)(4). In all events, this amount shall be limited to the amounts specified under Treasury Regulation Sections 1.409A-1(b)(9)(iii)(A) and 1.409A-1(b)(9)(iii)(B) and the amount of any payments of Salary Continuation described in Treasury Regulation Section 1.409A-1(b)(4)(i) or any successors thereto.

 

q.“Separation from Service” means a “separation from service” with the Company within the meaning of Code Section 409A (and regulations issued thereunder). Notwithstanding anything herein to the contrary, the fact that Executive is treated as having incurred a Separation from Service under Code Section 409A and the terms of this Agreement shall not be determinative, or in any way affect the analysis, of whether Executive has retired, terminated employment, separated from service, incurred a severance from employment or become entitled to a distribution, under the terms of any qualified retirement plan (including pension plans and 401(k) savings plans) maintained by the Company.

 

r.“Specified Employee” means a “specified employee” under Code Section 409A (and regulations issued thereunder).

 

s.“Trade Secret” means information, including a formula, pattern, compilation, program, device, method, technique or process, that derives independent economic value, actual or potential, from not being generally known to, and not being readily ascertainable by proper means by, other persons who can obtain economic value from its disclosure or use, and that is the subject of efforts

 

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to maintain its secrecy that are reasonable under the circumstances. 

 

Employment.

 

	
 
	
2.
	
Severance.

 

a.Upon the occurrence of a Qualifying Termination, Executive shall be entitled to the following:

 

i.Salary Continuation during the Salary Continuation Period.

ii.Continuation of health, dental and vision coverage for Executive, his spouse and his dependents, as applicable, at the applicable active employee rate (which shall be withheld, as applicable, from payments of Executive’s Salary Continuation) until the end of the pay period that includes the last day of the Salary Continuation Period, on the same terms as they were provided immediately prior to the Date of Termination (the “Continuation Benefits”). Any such coverage provided during the Salary Continuation Period shall not run concurrently with the applicable continuation period in accordance with the provisions of the Consolidated Omnibus Budget Reconciliation Act (“COBRA”). If Executive becomes eligible to participate in another medical or dental benefit plan or arrangement through another employer during such period, the Company shall no longer pay for continuation coverage benefits and Executive shall be required to pay the full COBRA premium. Executive is required to notify the Company within thirty (30) days of obtaining other medical or dental benefits coverage. Any coverage provided under this

 

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Section 2(a)(ii) shall be subject to such amendments (including termination) of the coverage available to active participants as the Company shall make from time to time at its sole discretion, including but not limited to changes in covered expenses, employee contributions for premiums, and co-payment obligations, and shall be, to the fullest extent permitted by law, secondary to any other coverage Executive may obtain from subsequent employment. If the Company’s health plans are self- funded within the meaning of Code Section 105(h), the premiums paid by the Company for coverage shall be treated as taxable income to Executive.

 

iii.Reasonable outplacement services considering Executive’s position, mutually agreed upon by the Company and Executive from those vendors used by Company as of the Date of Termination, for a period of up to twelve (12) months or until subsequent employment is obtained, whichever occurs first. In addition, a resignation by Executive for Good Reason under this Agreement shall also be deemed to be a termination without Cause for purposes of Executive’s Relocation Repayment Agreement entered into with the Company on or prior to the Start Date, with all attendant benefits to be provided thereunder.

 

iv.Accrued Amounts.

 

Executive shall not be entitled to continuation of compensation or benefits if Executive’s employment terminates for any other reason, including due to death or Disability, except as may be provided under any other agreement or benefit

 

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plan applicable to Executive at the time of the termination of Executive’s employment and except for Accrued Benefits (provided that upon a resignation without Good Reason or Termination for Cause, the pro rata annual bonus otherwise payable in respect of the year in which the Date of Termination occurs shall not be paid). Executive shall also not be entitled to Salary Continuation, the Continuation Benefits nor the outplacement services pursuant to clause iii. above, after Executive materially violates the terms of this Agreement, including the material requirements under Section 8, unless such violation is effectively curable and Executive cures such violation within ten (10) business days after written notice of such violation by the Company. Except as provided in this Section 2, all other compensation and benefits shall terminate as of the Date of Termination.

 

b.Subject to subsection (c), Company shall pay Executive’s Salary Continuation due under Section 2(a)(i) in substantially equal installments on each regular salary payroll date for the Salary Continuation Period, except as otherwise provided in this Agreement. Salary Continuation payments shall be subject to withholdings for federal and state income taxes, FICA, Medicare and other legally required or authorized deductions.  For the avoidance of doubt, Executive shall not be obligated to seek affirmatively or accept an employment, contractor, consulting or other arrangement to mitigate Salary Continuation and any other amounts received for such activities shall not reduce the amounts due hereunder. Further, to the extent Executive does not execute and timely submit the General Release and Waiver (in accordance with Section 7) by the deadline specified therein, or revokes such General Release and Waiver, Salary Continuation

 

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payments Continuation Benefits shall terminate and forever lapse, and Executive shall be required immediately to reimburse the Company for any portion of the Salary Continuation and health benefits premiums paid during the Salary Continuation Period. For clarity, the Salary Continuation and Continuation Benefits shall, subject to paragraph c below, start immediately upon the Date of Termination and not be delayed until such General Release and Waiver is executed and not revoked. To the extent such Salary Continuation was paid in a calendar year prior to the calendar year in which such reimbursement is received by the Company, the reimbursement shall be in the gross amount of such Salary Continuation on a pre-tax-withholding basis. To the extent such Salary Continuation was paid in the same calendar year as the reimbursement is received by the Company, the reimbursement shall be in the net amount of such Salary Continuation on an after-tax-withholding basis. In the event such reimbursement is required with respect to Salary Continuation payments that are reported on a Form W-2 for Executive, Executive shall be solely responsible for claiming any related tax deduction, and the Company shall not be required to issue a corrected Form W-2 except as required by law.

 

c.If at the time of Separation from Service, the Executive is a Specified Employee, payment of any nonqualified deferred compensation due during such six (6) month period shall be deferred until the earlier of six (6) months and one (1) day after the Executive’s Separation from Service or the Executive’s death and then paid in a lump sum; provided that, if the Executive’s Separation from Service qualifies under Code 409A for the application of the

 

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Section 409A Threshold, such Section 409A Threshold shall be applied, after application of any short term deferral period that applies to payments, such that full payment of the nonqualified deferred compensation shall be made until the Section 409A Threshold is reached and then any remaining payments during such six (6) months period shall be deferred until the end of the period or Executive’s earlier death.

 

d.If the Termination is a Change in Control Termination and occurs prior to the Change in Control, any increased Annual Bonus amount that becomes due as a result of the Change in Control from the period prior to the Change in Control shall be paid in a lump sum upon the Change in Control, but if, and only if, the Change in Control is covered by Treasury Reg. 1-409A-3(i)(v).

 

e.If any of the payments or benefits received or to be received by Executive (whether pursuant to the terms of this Agreement or any other plan, arrangement or agreement, or otherwise) constitute “parachute payments” within the meaning of Section 280G of the Code and would, but for this paragraph, be subject to the excise tax imposed under Section 4999 of the Code (the “Excise Tax”), then such payments shall be reduced by the minimum possible amounts until no amount payable to Executive will be subject to the Excise Tax; provided, however, that no such reduction shall be made if the net after-tax payment (after taking into account federal, state, local or other income, employment and excise taxes) to which Executive would otherwise be entitled without such reduction would be greater than the net after-tax payment (after taking into account federal, state, local or other income, employment and excise taxes) to Executive resulting

 

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from the receipt of such payments with such reduction. In applying any such reduction, the Executive shall be entitled to elect the order of reduction to the extent such right would not be a violation of Code Sections 280G, 409A or 4999. If it is a violation or the Executive does not elect, to the extent any such payments may be subject to Code Section 409A, the reduction shall be applied to in the following order (i) any payments of Salary Continuation starting with the last payment due, (ii) vesting of compensatory awards of shares (or in the absence of shares, restricted stock units) to the extent Treas. Reg 1.280G-Q and A24(c) does not apply in reverse order, (iii) vesting of compensatory awards of shares (or in the absence of shares, restricted stock units) to the extent such Section does not apply in reverse order, (iv) compensatory stock options on the sum basis and sum order as (n) and (m) and then (v) any remaining payments on a pro rata basis in proportion to the amount of such payments that are considered “contingent on a change in ownership or control” within the meaning of Section 280G of the Code. All calculations and determinations under this subsection (e) shall be made by an independent accounting firm or independent tax counsel appointed by the Company whose determinations shall be conclusive and binding on the Company and the Executive for all purposes and who (x) shall provide an opinion to the Company (in respect of which the Company shall use its reasonable best efforts to also require such firm or counsel to provide an opinion to Executive) that can be relied on for filing tax returns and (y) shall provide copies of all such calculations, as well as a copy of a formal valuation of any non-competition provision that impacts the foregoing calculations. All fees and expenses of the accounting firm

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or tax counsel shall be borne solely by the Company and shall be paid by the Company.

 

3.Confidentiality. Subject to Section 11(b) below, in addition to all duties of loyalty imposed on Executive by law or otherwise, during the term of Executive’s Company Employment and for two years following the termination of such employment for any reason, other than in the reasonable and good faith performance of his duties to the Company, Executive shall maintain Confidential Information in confidence and secrecy and shall not disclose Confidential Information or use it for the benefit of any person or organization (including Executive) other than the Company without the prior written consent of an authorized officer of the Company (except for disclosures to persons acting on the Company’s behalf with a need to know such information).

 

4.Non-Disclosure of Trade Secrets. Subject to Section 11(b) below, during Executive’s Company Employment, except in the reasonable and good faith performance of his duties to the Company, Executive shall preserve and protect Trade Secrets of the Company from unauthorized use or disclosure; and after termination of such employment, Executive shall not use or disclose any Trade Secret of the Company for so long as that Trade Secret remains a Trade Secret.

 

5.Third-Party Confidentiality. Executive shall not disclose to the Company, use on its behalf, or otherwise induce the Company to use any secret or confidential information belonging to persons or entities not affiliated with the Company, which may include a former employer of Executive, if Executive then has an obligation or duty to any person or entity (other than the Company) to not disclose such information to other persons or entities, including the

 

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Company. Executive acknowledges that the Company has disclosed that the Company is now, and may be in the future, subject to duties to third parties to maintain information in confidence and secrecy. By executing this Agreement, Executive consents to be bound by any such duty owed by the Company to any third party of which he is informed.

 

6.Work Product. Executive acknowledges that all ideas, inventions, innovations, improvements, developments, methods, designs, analyses, reports, databases, and any other similar or related information (whether patentable or not) which relate to the actual or anticipated business, research and development, or existing or known future products or services of the Company which are or were conceived, developed or created by Executive (alone or jointly with others) during Executive’s Company Employment (the “Work Product”) is and shall remain the exclusive property of the Company. Executive acknowledges and agrees that all copyrightable Work Product was created in Executive’s capacity as an employee of Lands’ End and within the scope of Executive’s Company Employment, and thus constitutes a “work made for hire” under the Copyright Act of 1976, as amended. Executive hereby assigns to the Company all right, title and interest in and to all Work Product, and agrees to perform all actions reasonably requested by the Company to establish, confirm or protect the Company’s ownership thereof (including, without limitation, executing assignments, powers of attorney and other instruments).

 

7.General Release and Waiver. Upon or following Executive’s Date of Termination potentially entitling Executive to Salary Continuation and other benefits under Section 2 above, Executive will execute a binding general release and waiver of claims in a form substantially similar to the attached Appendix B. If the General Release and Waiver is not signed within the time it requires or is signed but subsequently revoked, Executive will not

 

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continue to receive any Salary Continuation otherwise payable, and shall reimburse any Salary Continuation previously paid.

 

8.Noncompetition. During Executive’s Company Employment and thereafter for the applicable Restricted Period, Executive shall not, directly or indirectly, participate in, consult with, be employed by, or assist with the organization, planning, financing, management, operation or control of any Competitive Business, provided the foregoing shall not limit Executive from being involved in the noncompetitive portion of a Competitive Business.

 

9.Nonsolicitation. During Executive’s Company Employment and for eighteen (18) months following the termination of such employment for any reason, Executive shall not, directly or indirectly, either by himself or by providing substantial assistance to others (i) solicit any employee of the Company to terminate employment with the Company, or (ii) employ or seek to employ, or cause or assist any other person, company, entity or business to employ or seek to employ, any individual who was both an employee of the Company as of Executive’s Date of Termination and has been an employee of the Company in the six (6) months prior to the event. The foregoing shall not be violated by general advertising not targeted at employees of the Company or serving as a reference upon request to an entity with which Executive is not associated.

 

10.Future Employment. During Executive’s Company Employment and thereafter for the applicable Restricted Period, before accepting any employment with any Competitive Business (whether or not Executive believes such employment is prohibited by Section 8), Executive shall disclose to the Company the identity of any such Competitive Business and a complete description of the duties involved in such prospective employment,

 

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including a full description of any business, territory or market segment to which Executive will be assigned. Further, during Executive’s Company Employment and for eighteen (18) months following the termination of such employment for any reason, Executive agrees that, before accepting any future employment, Executive will provide a copy of this Agreement to any prospective employer of Executive, and Executive hereby authorizes the Company to do likewise, whether before or after the outset of the future employment.

 

	
 
	
11.
	
Nondisparagement; Cooperation.

 

 

a.During Executive’s Company Employment and for two (2) years following the termination of such employment for any reason, Executive (i) will not criticize or disparage the Company or its directors, officers, employees or products, and (ii) will reasonably cooperate with the Company in all investigations, potential litigation or litigation in which the Company is involved or may become involved with respect to matters that relate to Executive’s Company Employment (other than any such investigations, potential litigation or litigation between Company and Executive); provided, that, with regard to Executive’s duties under clause (ii), Executive shall be reimbursed for reasonable travel and out-of-pocket expenses related thereto, but shall otherwise not be entitled to any additional compensation. During Executive’s Company employment and for two (2) years following the termination of such employment, the Company’s executive officers and its directors shall not, directly or indirectly, except the directors and/or executive officers amongst themselves while Executive is employed in their reasonable and good faith performance of their duties to the Company, criticize or disparage Executive.

 

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b.Notwithstanding the foregoing, nothing in this Section 11 or any other provision of this Agreement shall prevent Executive or the officers and directors from (i) making any truthful statement to the extent, but only to the extent (A) necessary with respect to any litigation, arbitration or mediation involving this Agreement or the Employment Letter, including, but not limited to, the enforcement of this Agreement or the Employment Letter, in the forum in which such litigation, arbitration or mediation properly takes place or (B) required by law, legal process or by any court, arbitrator, mediator or administrative or legislative body (including any committee thereof) with apparent jurisdiction, (ii) making normal competitive statements any time after the expiration of the applicable Restricted Period, (iii) rebut false or misleading statements made by others and/or (iv) making any statements in the reasonable and good faith performance of duties to the Company while Executive is employed by the Company.

 

12.Indemnification. After termination, the Company shall continue to maintain a directors and officers liability insurance policy covering Executive to the extent the Company provides such coverage for its executive officers and directors and shall continue to cover Executive under any indemnification agreement, by-laws or other existing indemnification rights while liability continues to exist after the Date of Termination.

 

13.Notices. All notices, request, demands and other communications required or permitted hereunder shall be in writing and shall be deemed to have been duly given (or received, as applicable) upon the calendar date when delivered by hand or when mailed by United States certified or registered mail with postage prepaid addressed as follows:

 

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a.If to Executive, to such person or address which Executive has furnished to the Company in writing pursuant to the above.

 

b.If to the Company, to the attention of the Company’s General Counsel at the address set forth on the signature page of this Agreement or to such other person or address as the Company shall furnish to Executive in writing pursuant to the above.

 

14.Enforceability. Executive recognizes that irreparable injury may result to the Company, its business and property, and the potential value thereof in the event of a sale or other transfer, if Executive breaches any of the restrictions imposed on Executive by this Agreement, and Executive agrees that if Executive shall engage in any act in violation of such provisions, then the Company shall be entitled, in addition to such other remedies and damages as may be available, to an injunction prohibiting Executive from engaging in any such act.

 

15.Successors and Assigns. This Agreement shall inure to the benefit of and be binding upon and enforceable by Lands’ End, Inc., its successors, pending assigns and Affiliates, all of which (other than Lands’ End, Inc.) are intended third-party beneficiaries of this Agreement. Executive hereby consents to the assignment of this Agreement to any person or entity, which is a successor to all or substantially all of the Lands’ End business provided such entity assumes the obligation hereunder in writing.

 

16.Validity. Any invalidity or unenforceability of any provision of this Agreement is not intended to affect the validity or enforceability of any other provision of this Agreement, which the parties intend to be severable and divisible, and to remain in full force and effect to the greatest extent permissible under applicable law.

 

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17.Choice of Law; Jurisdiction. Except to the extent superseded or preempted by federal U.S. law, the rights and obligations of the parties and the terms of this Agreement shall be governed by and construed in accordance with the domestic laws of the State of Wisconsin, but without regard to the State of Wisconsin’s conflict of laws rules. The parties further agree that the state and federal courts in Madison, Wisconsin, shall have exclusive jurisdiction over any claim which in any way arises out of Executive’s employment with the Company, including but not limited to any claim seeking to enforce the provisions of this Agreement.

 

18.Section 409A Compliance. To the extent that a payment or benefit under this Agreement is subject to Code Section 409A, it is intended that this Agreement as applied to that payment or benefit comply with or be exempt from the requirements of Code Section 409A, and the Agreement shall be administered and interpreted consistent with this intent. Notwithstanding any provision of this Agreement to the contrary, for purposes of any provision of this Agreement providing for the payment of any amounts or benefits upon or following a termination of employment that are considered deferred compensation under Section 409A, references to Executive’s “termination of employment” (and corollary terms) with the Company shall be construed to refer to Executive’s “separation from service” (within the meaning of Treas. Reg. Section 1.409A-1(h)) with the Company. Whenever payments under this Agreement are to be made in installments, each such installment shall be deemed to be a separate payment for purposes of Section 409A. With respect to any reimbursement or in-kind benefit arrangements of the Company that constitute deferred compensation for purposes of Section 409A, except as otherwise permitted by Section 409A, the following conditions shall be applicable: (i) the amount eligible for reimbursement, or in-kind benefits provided, under any

 

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such arrangement in one calendar year may not affect the amount eligible for reimbursement, or in-kind benefits to be provided, under such arrangement in any other calendar year, (ii) any reimbursement must be made on or before the last day of the calendar year following the calendar year in which the expense was incurred, and (iii) the right to reimbursement or in-kind benefits is not subject to liquidation or exchange for another benefit.

 

19.Effectiveness. The parties to this Agreement each acknowledge and agree that Executive’s employment shall not commence, and Executive shall not be subject to or eligible for payments and benefits under this Agreement, in each case until Executive commences Executive’s Company Employment on the Start Date. Notwithstanding the foregoing, in the event that, after the Effective Date but prior to the Start Date, (a) the Company terminates the Employment Letter and this Agreement and rescinds the offer to Executive to commence employment with the Company on the Start Date (under circumstances other than those which, if Executive were employed with the Company at such time, would constitute Cause), then Executive shall be entitled to receive the Salary Continuation in accordance with the terms of Section 2.a.i. above, with the Salary Continuation Period to commence on the next regularly scheduled payroll date occurring after the Company has provided written notice to Executive of its termination of the Employment Letter and this Agreement, or (b) Executive terminates the Employment Letter and this Agreement, Executive shall first be required to provide sixty (60) days advance written notice to the Company of such termination, in which case Executive acknowledges and agrees that Executive, for good and valuable consideration, shall be bound by the restrictive covenants set forth in Sections 3 through 9 of this Agreement, as if Executive had resigned without Good Reason on the date of such written notice.

 

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20.Miscellaneous. No waiver by either party hereto at any time of any breach by the other party hereto of, or compliance with, any condition or provision of this Agreement to be performed by such other party shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time. No agreements or representations, oral or otherwise, express or implied, with respect to the subject matter hereof have been made by either party which are not set forth expressly in this Agreement. This Agreement may be modified only by a written agreement signed by Executive and a duly authorized officer or director of the Company.

 

 

	
	
[END OF DOCUMENT. SIGNATURES ON NEXT PAGE.]

 

 

 

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

 

 

 

					
	
 
	
 
	
 
	
EXECUTIVE
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
/s/ Jerome S. Griffith
	
 

	
 
	
 
	
 
	
Jerome S. Griffith
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
LANDS’ END, INC.
	
 

	
 
	
 
	
 
	
By: /s/ Josephine Linden
	
 

	
 
	
 
	
 
	
Name: Josephine Linden
	
 

	
 
	
 
	
 
	
Its: Chair, Board of Directors
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
5 Lands’ End Lane
	
 

	
 
	
 
	
 
	
Dodgeville, WI 53595
	
 

	
 
	
 
	
 
	
 
	
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

			
	
 
	
[Signature Page to Jerome S. Griffith Executive Severance Agreement]
	
 

 

 

	
	
 

 

 

 

 

 

 

Appendix A

 

Amazon.com

Ann Taylor

Ascena Retail Group, Inc.

Bonobos

Brooks Brothers

Chico's

Eddie Bauer

The Gap Company

J. C. Penney Company Inc.

J. Crew

Jos. A. Bank

Kate Spade

Kohl’s

L Brands

L.L. Bean 

Next Retail

Polo Ralph Lauren

Talbots

Target

Tommy Hilfiger

Vineyard Vines

 

A-1

 
 

 

 

Appendix B

 

NOTICE: YOU MAY CONSIDER THIS GENERAL RELEASE AND WAIVER FOR UP TO TWENTY-ONE (21) DAYS. YOU MAY NOT SIGN IT UNTIL ON OR AFTER YOUR LAST DAY OF WORK.  IF YOU DECIDE TO SIGN IT, YOU MUST DELIVER A SIGNED COPY TO LANDS’ END, INC. BY NO LATER THAN THE TWENTY- SECOND (22ND ) DAY AFTER YOUR LAST DAY OF WORK TO THE GENERAL COUNSEL, LANDS’ END, INC., 5 LANDS’ END LANE, DODGEVILLE, WISCONSIN 53595. YOU MAY REVOKE THE GENERAL RELEASE AND WAIVER WITHIN SEVEN (7) DAYS AFTER SIGNING. ANY REVOCATION WITHIN THIS PERIOD MUST BE IMMEDIATELY SUBMITTED IN WRITING TO THE GENERAL COUNSEL AT THE ADDRESS SET FORTH ABOVE. YOU MAY WISH TO CONSULT WITH AN ATTORNEY BEFORE SIGNING THIS DOCUMENT.

 

GENERAL RELEASE AND WAIVER

 

In consideration of the severance benefits that are described in the attached Executive Severance Agreement that I previously entered into with Lands’ End, Inc., dated December 19, 2016, I, for myself, my heirs, administrators, representatives, executors, successors and assigns, do hereby release Lands’ End, Inc., its current and former agents, subsidiaries, affiliates, related organizations, employees, officers, directors, shareholders, attorneys, successors, and assigns (collectively, “Lands’ End”) from any and all claims of any kind whatsoever, whether known or unknown, arising out of, or connected with, my employment with Lands’ End and the termination of my employment. Without limiting the general application of the foregoing, this General Release & Waiver releases, to the fullest extent permitted under law, all contract, tort, defamation, and personal injury claims; all claims based on any legal restriction upon Lands’ End’s right to terminate my employment at will; Title VII of the Civil Rights Act of 1964, 42 U.S.C. §§ 2000e et seq.; the Age Discrimination in Employment Act, 29 U.S.C. §§ 621 et seq.; the Americans with Disabilities Act, 42 U.S.C. §§ 12101 et seq.; the Rehabilitation Act of 1973, 29 U.S.C. §§ 701 et seq.; the Employee Retirement Income Security Act of 1974, 29 U.S.C. §§ 1001 et seq. (“ERISA”); 29 U.S.C. § 1985; the Civil Rights Reconstruction Era Acts, 42 U.S.C. §§ 1981-1988; the National Labor Relations Act, 29 U.S.C. §§ 151 et seq.; the Family & Medical Leave Act, 29 U.S.C. §§ 2601 et seq.; the Immigration & Nationality Act, 8 U.S.C. §§ 1101 et seq.; Executive Order 11246 and all regulations thereunder; the Wisconsin Fair Employment Act, Wis. Stat. §§ 111.31-111.395; the Wisconsin Family & Medical Leave Act, Wis. Stat. § 103.10; the Wisconsin Worker’s Compensation Act, Wis. Stat. Ch. 102; and any and all other state, federal or local laws of any kind, whether administrative, regulatory, statutory or decisional.

 

This General Release & Waiver does not apply to any claims that may arise after the date I sign this General Release & Waiver. Also excluded from this General Release & Waiver are any claims that cannot be waived by law, including but not limited to (1) my right to file a charge with or participate in an investigation conducted by the Equal Employment Opportunity Commission and (2) my rights or claims to benefits accrued under benefit plans maintained by Lands’ End and governed by ERISA. I do, however, waive any right to any monetary or other relief flowing from any agency or third-party claims or charges, including any charge I might file with any federal, state or local agency. I warrant and represent that I have not filed any

 

B-1

 
 

 

 

complaint, charge, or lawsuit against Lands’ End with any governmental agency or with any court. The release does not cover any rights to indemnification or rights to directors and officers liability insurance coverage

 

I also waive any right to become, and promise not to consent to become a participant, member, or named representative of any class in any case in which claims are asserted against Lands’ End that are related in any way to my employment or termination of employment at Lands’ End, and that involve events that have occurred as of the date I sign this General Release and Waiver. If I, without my consent, am made a member of a class in any proceeding, I will opt out of the class at the first opportunity afforded to me after learning of my inclusion. In this regard, I agree that I will execute, without objection or delay, an “opt-out” form presented to me either by the court in which such proceeding is pending, by class counsel or by counsel for Lands’ End.

 

I have read this General Release and Waiver and understand all of its terms. 

 

I have signed it voluntarily with full knowledge of its legal significance.

 

I have had the opportunity to seek, and I have been advised in writing of my right to seek, legal counsel prior to signing this General Release & Waiver.

 

I was given at least twenty-one (21) days to consider signing this General Release & Waiver. I agree that any modification of this General Release & Waiver Agreement will not restart the twenty-one (21) day consideration period.

 

I understand that if I sign the General Release & Waiver, I can change my mind and revoke it within seven (7) days after signing it by notifying the General Counsel of Lands’ End in writing at Lands’ End, Inc., 5 Lands’ End Lane, Dodgeville, Wisconsin 53595. I understand the General Release & Waiver will not be effective until after the seven (7) day revocation period has expired.

 

I understand that the delivery of the consideration herein stated does not constitute an admission of liability by Lands’ End and that Lands’ End expressly denies any wrongdoing or liability.

 

			
	
Date:  SAMPLE ONLY—DO NOT DATE
	
Signed by:
	
SAMPLE ONLY—DO NOT SIGN

	
 
	
Witness by:  
	
SAMPLE ONLY—DO NOT SIGN

 

B-2

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