Document:

EXHIBIT 10.15

 

SEPARATION AGREEMENT

 

This Separation Agreement (“Separation Agreement”) is entered into as of this 17 day of December, 2010, by and between Cherokee, Inc. (“Employer”) and Russell J. Riopelle, (“Employee”) with reference to the following facts:

 

I.                                         Employer no longer requires the services of Employee effective as of the close of business on or about Friday, December 17, 2010 (the “Termination Date”).

 

II.                                     Employer and Employee desire to compromise and, finally, settle and resolve all controversies between them, and to bring these and all other matters to a conclusion.

 

NOW, THEREFORE, in consideration of the covenants undertaken and releases given herein, the parties hereby agree as follows:

 

1.             Employee shall continue to be paid through the Termination Date, then Employer agrees to pay to Employee through payroll period ending April 29, 2011, twelve thousand eight hundred eighty four dollars and sixty-two cents ($12,884.62), per pay period, less standard withholdings and deductions, in accordance with Employer’s usual bi-weekly payroll schedule (including payment of employee’s health insurance, as is currently provided); provided that Employee’s entitlement to receive such payments is conditioned on expiration of the seven (7) day period referenced in Paragraph 12.

 

2.             Except as otherwise stated in this Separation Agreement, all other benefits enjoyed by Employee as part of Employee’s employment with Employer (including the accrual of vacation time, and receiving the Company’s matching 401-K contribution pursuant to participating in the Company’s 401-K program), shall cease as of the Termination Date.

 

3.             Employee understands that Employer has paid him/her all money due and owing to him/her, including without limitation all wages, salary, commissions, bonuses, severance, accrued vacation, overtime, outstanding expenses, etc., through the Termination Date.  The separation pay and other benefits provided for in this Separation Agreement are over and above the compensation which Employee is otherwise entitled to from the Employer and represents consideration for the release of claims set forth below.

 

4.             In consideration of the payments and other promises of Employer described above, Employee does hereby agree not to sue and acknowledges complete satisfaction of and hereby releases, absolves and discharges Employer and its affiliated companies and partners and each of their present or former officers and directors, shareholders, partners, employees, agents, attorneys and representatives (collectively “Employer Releasees”) of, from and against any and all claims, demands, liens, agreements, contracts, covenants, actions, suits, causes of action, wages, obligations, debts, expenses, attorneys’ fees, damages, judgments, orders and liabilities of whatever kind or nature in law, equity or otherwise (collectively “Claims”), which Employee now owns or holds or has or at any time heretofore owned or held or had or

 

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may in the future own or hold or have against Employer Releasees, or any of them, as of the date that Employee signs this Separation Agreement, including, but not limited to, Claims (a) arising out of Employee’s employment with Employer and Employee’s termination from his/her employment with Employer, (b) that Employer Releasees or any of them discriminated against Employee on the basis of his/her race, sex, religion, national origin, handicap, ancestry, sexual orientation, or age, (c) that Employee was defamed, libeled or slandered, (d) arising under Title VII of the Civil Rights Act of 1964, The Civil Rights Act of 1991, The Americans With Disabilities Act, The California Fair Employment and Housing Act, The Employer Retirement Income Security Act, California Labor Code section 970, The Age Discrimination in Employment Act, The California Fair Employment and Housing Act or any similar state statute, and/or (e) any claim for employment discrimination, breach of contract, invasion of privacy, interference with contract, business relationships, or prospective economic advantage, emotional distress, wrongful termination, deferred compensation, stock options, bonus, or any other fringe benefits or commissions.  Employee understands and agrees that, by entering into this Separation Agreement:  (i) he is waiving any rights or claims he might have under the Age Discrimination in Employment Act, as amended by the Older Workers Benefit Protection Act; (ii) he has received consideration beyond that to which he was previously entitled;  (iii) he has been advised to consult with an attorney before signing this Separation Agreement; and (iv) he has been offered the opportunity to evaluate the terms of this Separation Agreement for not less than twenty-one days prior to his execution of this Separation Agreement (the “Evaluation Period”).  Employee understands that he may waive the Evaluation Period and execute the Separation at an earlier date.   Employee acknowledges that he has no work related injuries to report.

 

5.              It is a further condition of the consideration hereof and is the intention of the parties in executing this instrument that the same shall be effective as a bar as to each and every claim, demand, cause of action or other rights or obligations herein above specified and, in furtherance of this intention, Employee hereby expressly waives any and all rights or benefits conferred by the provisions of SECTION 1542 OF THE CALIFORNIA CIVIL CODE and expressly consents that this Separation Agreement shall be given full force and effect according to each and all of its express terms and conditions, including those relating to unknown and unsuspected claims, demands and causes of actions, if any, as well as those relating to any other claims, demands and causes of actions or other rights or obligations hereinabove specified. Section 1542 provides:

 

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

 

Employee acknowledges that he/she may hereafter discover claims or facts in addition to or different from those which the parties now know or believe to exist with respect to the subject matter of this Separation Agreement and which, if known or suspected at the time of executing this Separation Agreement, may have materially affected this settlement.  Nevertheless, Employee hereby waives any right, claim or causes of action that might arise as a result of such different or additional claims or facts.  Employee acknowledges that he/she

 

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understands the significance and consequence of such release and such specific waiver of Section 1542.

 

6.              The parties hereto represent and acknowledge that in executing this Separation Agreement they do not rely and have not relied upon any representation or statement made by any of the parties or by any of the parties’ agents, attorneys or representatives with regard to the subject matter, basis or effect of this Separation Agreement or otherwise, other than those specifically stated in this written Separation Agreement.

 

7.            a.     Employee acknowledges that by reason of his/her position with Employer he/she has been given access to Confidential Information.  For purposes of this Separation Agreement, the term “Confidential Information” shall mean all trade secrets and confidential and proprietary business information of Employer and affiliates of Employer, whether or not designated or marked “CONFIDENTIAL” or the like, which Employer and its affiliates in fact maintain as confidential, regarding any products, licenses, licensees both current and prospective, processes, and services, developed, acquired or used by Employer or any affiliate of Employer relating to their business, operations, employees, clients, customers, licensees and other business associates, which gives Employer or any affiliate of Employer a competitive advantage over those who do not know the secrets or information.  Confidential Information may include without limitation information relating to pricing, sales, sales strategy, research, potential licensing deals, potential licensees, developments, inventions, manufacture, purchasing, accounting, merchandising, trade marks and trade dress, trade secrets, customers, prospects, valuable or unique ideas, inventions, completed, current or future business and financial transactions, processes, methods and techniques acquired, records relating to suppliers, sources of materials, cost of materials, customer lists (including potential customers), sources of financing and supplies, processes, plans, pricing information, computer programs and software, internal memoranda, marketing plans, internal policies, products and services which may be developed from time to time by Employer or its affiliates, agents or employees, as well as information provided by a third party to Employer which Employer is obligated to keep confidential.  Employee hereby agrees not to, directly or indirectly, use, disseminate, disclose, lecture upon or publish articles concerning any Confidential Information or trade secrets acquired by Employee in the course of his/her employment with Employer.  The term “trade secrets” shall include, but not be limited to, information concerning Employer’s methods of operations, future plans, budgets, revenues, expenses, customers, vendors, employees, equipment and any and all information not disseminated to the public.  Employee also agrees to return any proprietary documents and property, whether in electronic, hardcopy or other form, which he/she has received during his/her employment with Employer, including but not limited to keys, computer equipment and data.

 

b.     Employee agrees that the terms, conditions and existence of this Separation Agreement are confidential and, except as provided herein, shall only be disclosed to his accountants and/or attorneys and may not be disclosed to any person or entity except as required by a properly issued subpoena or court order or as mandated by law or the securities and exchange commission.  This confidentiality provision is recognized by the Parties to be a material provision of this General Release Agreement.  Should anyone make an inquiry

 

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regarding the matter, Employee and Employer agree that they may respond they “have parted ways amicably and in good standing.”

 

c.     For one (1) year from the effective date of Employee’s termination, the Employee shall not, directly or indirectly, either on Employee’s behalf or on behalf of any other person or entity attempt to persuade any client of Employer to cease to do business with Employer.

 

d.     For a one (1) year from the effective date of Employee’s resignation, Employee shall not, directly or indirectly, 1) encourage any employee of Employer or its affiliates to leave his or her employment with such entity or its successors in interest or 2) contact any employee to discuss Employer’s business.

 

e.     At no time shall Employee or Employer make any remarks disparaging the conduct or character of the other or any of their subsidiaries or affiliates, their agents, employees, officers, directors, successors, or assigns nor shall Employee ever contact any Employer’s licensee’s (such as but not limited to Target Stores, Tesco, Carefour, etc.) to discuss the business between Employer and the said company.

 

f.     At all times following the effective date of Employee’s termination, Employee and Employer shall cooperate together to the extent reasonably necessary to assist each other in the transition of their responsibilities and in any litigation or administrative proceedings involving any matters with which each was involved during Employee’s employment.  Employer shall reimburse Employee for reasonable expenses, if any, incurred in providing such assistance, and Employee shall reimburse Employer for reasonable expenses, if any, incurred in providing such assistance.

 

g.     Any breach by Employee of his obligations under Paragraph 7 of this Separation Agreement shall be considered a material breach of this Separation Agreement provided that Employee has not cured within ten (10) days of receipt of written notice of the alleged breach or non-performance.  If Employee has not cured the alleged breach or nonperformance within the ten (10) day period, then Employer shall have the right to immediately cease payment of separation pay as provided for above, and Employee shall not received any further payments.

 

8.              This Separation Agreement shall be deemed to have been executed and delivered within the State of California, and the rights and obligations of the parties hereunder shall be construed and enforced in accordance with, and governed by, the laws of the State of California without regard to principles of conflict of laws.

 

9.              The parties have attempted to create an agreement that is lawful and enforceable in all respects. In the event that any provision of this Separation Agreement is found or deemed to be illegal or otherwise invalid and unenforceable, whether in whole or in part, such invalidity shall not affect the other provisions.  In the event that any term hereof is found or deemed to be illegal or otherwise invalid or unenforceable, the parties shall attempt to negotiate a valid new provision concerning the same subject matter, and the parties further agree that in the

 

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event that they are unable to agree upon the terms of a new provision, upon request of either party, the matter shall be submitted to final and binding arbitration as provided in Paragraph 13.

 

10.           Employee agrees to execute a letter in the form attached hereto as Exhibit A, acknowledging his termination as an officer of Employer.

 

11.            Any claim or dispute which refers or relates to: (1) any aspect of this Separation Agreement, or (2) any term or provision of this Separation Agreement, or (3) the interpretation and application any term or provision of this Separation Agreement, or (4) any alleged breach or violation of any provision of this Separation Agreement, or (5) any dispute of any kind between Employee and Employer hereto which may arise after this Separation Agreement is executed by the parties, will be submitted to final and binding arbitration with the Judicial Arbitration and Mediation Service in Los Angeles, California, before an experienced arbitrator licensed to practice law in California, and conducted in accordance with the non-union employment dispute resolution rules of such arbitration service, as the exclusive remedy for such claim or dispute.

 

12.            For a period of seven (7) days following Employee’s execution of this Separation Agreement, he may revoke this Separation Agreement, and rescind his assent thereto.  This Separation Agreement shall not become effective or enforceable until seven (7) days have passed following Employee’s execution of this Separation Agreement.  The effective date of this Separation Agreement shall be the eighth day after Employee executes this agreement, if he has not earlier revoked it.  Employee may revoke this agreement only by giving written notice of revocation to Employer, Attn: Howard Siegel, President, within the such seven (7) day period.  If Employee revokes this Separation Agreement, this Separation Agreement shall be deemed null and void.

 

PLEASE READ CAREFULLY; THIS SETTLEMENT AGREEMENT AND GENERAL MUTUAL RELEASE INCLUDES A RELEASE OF ALL KNOWN AND UNKNOWN CLAIMS.

 

IN WITNESS WHEREOF, the parties hereto have executed the Separation Agreement.

 

 

	
 
    	
EMPLOYEE
    	
 
    	
CHEROKEE, INC.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
By:
    	
/s/   Russell J. Riopelle
    	
 
    	
By:
    	
/s/   Howard Siegel
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
Russell   J. Riopelle
    	
 
    	
Howard   Siegel, President & COO
    

 

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Exhibit A

 

TERMINATION AS OFFICER

 

I, Russell J. Riopelle, hereby acknowledge my termination as an Officer of Cherokee Inc. effective the date of my signature hereto.

 

 

	
Signature:
    	
/s/   Russell J. Riopelle
    	
 
    	
Date:
    	
12/17/10
    

 

6EXHIBIT 10.18

 

NON-QUALIFIED STOCK OPTION AGREEMENT

 

FROM THE 2006 INCENTIVE AWARD PLAN OF CHEROKEE INC.

 

THIS AGREEMENT, dated February 16, 2011, is made by and between Cherokee Inc., a Delaware corporation, hereinafter referred to as the “Company,” and Jess M. Ravich, a Director of the Company or a Parent Corporation or Subsidiary of the Company, hereinafter referred to as “Director.”

 

WHEREAS, the Company wishes to afford the Director the opportunity to purchase shares of its Common Stock, par value $0.02 per share; and

 

WHEREAS, the Company wishes to carry out The 2006 Incentive Award Plan of Cherokee Inc. (the “Plan”) (the terms of which are hereby incorporated by reference and made a part of this Agreement);

 

WHEREAS, the independent members of the Company’s Board of Directors (other than the Director) have determined that it would be to the advantage and best interest of the Company and its stockholders to grant the Non-Qualified Stock Option (the “Option”) provided for herein to the Director as an inducement to him to continue to serve on the Board of Directors of the Company as non-executive Chairman, and has advised the Company thereof and instructed the undersigned officer to issue said Option; and

 

WHEREAS, all capitalized terms used herein without definition shall have the meanings ascribed to such terms in the Plan.

 

NOW, THEREFORE, in consideration of the mutual covenants herein contained and other good and valuable consideration, the receipt of which is hereby acknowledged, the parties hereto do hereby agree as follows:

 

ARTICLE I

 

GRANT OF OPTION

 

1.1           Grant of Option.  In consideration of the Director’s agreement to continue to serve as a member of the Board of Directors of the Company as non-executive Chairman and for other good and valuable consideration, effective as of January 28, 2011 (the “Date of Grant”), the Company irrevocably grants to the Director the option to purchase any part or all of an aggregate of 100,000 shares of Common Stock, upon the terms and conditions set forth in this Agreement.  The Option is comprised of 100,000 Non-Qualified Stock Options, with such Option being fully-vested as of the Date of Grant as set forth on page two, Section 2.1.

 

1.2           Purchase Price.  The purchase price of the shares of Common Stock covered by the Option shall be $18.15 per share without commission or other charge (which was the closing stock price on the Date of Grant); provided, however, that the price per share of the shares subject to the Option shall not be less than the greater of (i) 100% of the Fair Market

 

 

Value of a share of Common Stock on the Date of Grant, or (ii) 110% of the Fair Market Value of a share of Common Stock on the Date of Grant in the case of an Director then owning (within the meaning of Section 424(d) of the Code) more than 10% of the total combined voting power of all classes of stock of the Company or any Subsidiary or parent corporation thereof (within the meaning of Section 422 of the Code).

 

1.3           Consideration to the Company.  In consideration of the granting of the Option by the Company, the Director agrees to render faithful and efficient services as a member of the Board of Directors of the Company, for a period of at least one (1) year from the Date of Grant.

 

1.4           Adjustments in Option.  The Committee may make adjustments with respect to the Option in accordance with the provisions of Section 9.3 of the Plan.

 

ARTICLE II

 

PERIOD OF EXERCISABILITY

 

2.1           Commencement of Exercisability.  Subject to Section 4.9, the Option shall be fully vested and exercisable as of the Date of Grant.

 

2.2           Duration of Exercisability.  The Option shall remain exercisable until it becomes unexercisable under Section 2.3.

 

2.3           Expiration of Option.  The Option may not be exercised to any extent by anyone after the expiration of five (5) years from the Date of Grant.

 

ARTICLE III

 

EXERCISE OF OPTION

 

3.1           Person Eligible to Exercise.  During the lifetime of the Director, only the Director may exercise the Option or any portion thereof.  After the death of the Director, any exercisable portion of the Option may, prior to the time when the Option becomes unexercisable under Section 2.3, be exercised by the Director’s personal representative or by any person empowered to do so under the deceased Director’s will or under the then applicable laws of descent and distribution.

 

3.2           Partial Exercise.  Any exercisable portion of the Option or the entire Option, if then wholly exercisable, may be exercised in whole or in part at any time prior to the time when the Option or portion thereof becomes unexercisable under Section 2.3; provided, however, that each partial exercise shall be for whole shares only.

 

3.3           Manner of Exercise.  The Option, or any exercisable portion thereof, may be exercised solely by delivery to the Secretary or the Secretary’s office of all of the following prior to the time when the Option or such portion thereof becomes unexercisable under Section 2.3:

 

 

(a)           A written notice complying with the applicable rules established by the Committee stating that the Option, or a portion thereof, is exercised.  The notice shall be signed by the Director or other person then entitled to exercise the Option or such portion of the Option;

 

(b)           Full cash payment to the Secretary of the Company for the shares with respect to which the Option, or portion thereof, is exercised.  However, the Committee may in its sole and absolute discretion (i) allow a delay in payment up to thirty (30) days from the date the Option, or portion thereof, is exercised; (ii) allow payment, in whole or in part, through the delivery of shares of Common Stock which have been owned by the Director for at least six months, duly endorsed for transfer to the Company with a Fair Market Value on the date of delivery equal to the aggregate exercise price of the Option or exercised portion thereof; (iii) allow payment, in whole or in part, through the surrender of shares of Common Stock then issuable upon exercise of the Option having a Fair Market Value on the date of Option exercise equal to the aggregate exercise price of the Option or exercised portion thereof; (iv) allow payment, in whole or in part, through the delivery of a notice that the Director has placed a market sell order with a broker with respect to shares of Common Stock then issuable upon exercise of the Option, and that the broker has been directed to pay a sufficient portion of the net proceeds of the sale to the Company in satisfaction of the Option exercise price, provided that payment of such proceeds is then made to the Company upon settlement of such sale; or (v) allow payment through any combination of the consideration provided in the foregoing subparagraphs (ii), (iii) and (iv);

 

(c)           Such representations and documents as the Committee, in its absolute discretion, deems necessary or advisable to effect compliance with all applicable provisions of the Securities Act and any other federal or state securities laws or regulations.  The Committee may, in its absolute discretion, also take whatever additional actions it deems appropriate to effect such compliance including, without limitation, placing legends on share certificates and issuing stop-transfer notices to agents and registrars; and

 

(d)           In the event the Option or portion thereof shall be exercised pursuant to Section 3.1 by any person or persons other than the Director, appropriate proof of the right of such person or persons to exercise the Option.

 

3.4           Conditions to Issuance of Stock Certificates.  The shares of Common Stock deliverable upon the exercise of the Option, or any portion thereof, may be either previously authorized but unissued shares or issued shares which have then been reacquired by the Company.  Such shares shall be fully paid and nonassessable.  The Company shall not be required to issue or deliver any certificate or certificates for shares of Common Stock purchased upon the exercise of the Option or portion thereof prior to fulfillment of all of the following conditions:

 

(a)           The admission of such shares to listing on all stock exchanges on which such Common Stock is then listed; and

 

(b)           The completion of any registration or other qualification of such shares under any state or federal law or under rulings or regulations of the Securities and Exchange

 

 

Commission or of any other governmental regulatory body, which the Committee shall, in its absolute discretion, deem necessary or advisable; and

 

(c)           The obtaining of any approval or other clearance from any state or federal governmental agency which the Committee shall, in its absolute discretion, determine to be necessary or advisable; and

 

(d)           The receipt by the Company of full payment for such shares, including payment of all amounts which, under federal, state or local tax law, the Company (or other employer corporation) is required to withhold upon exercise of the Option; and

 

(e)           The lapse of such reasonable period of time following the exercise of the Option as the Committee may from time to time establish for reasons of administrative convenience.

 

3.5           Rights as Stockholder.  The holder of the Option shall not be, nor have any of the rights or privileges of, a stockholder of the Company in respect of any shares purchasable upon the exercise of any part of the Option unless and until such shares shall have been issued by the Company to such holder.

 

ARTICLE IV

 

OTHER PROVISIONS

 

4.1           Administration.  The Committee shall have the power to interpret the Plan and this Agreement and to adopt such rules for the administration, interpretation and application of the Plan as are consistent therewith and to interpret, amend or revoke any such rules.  All actions taken and all interpretations and determinations made by the Committee in good faith shall be final and binding upon the Director, the Company and all other interested persons.  No member of the Committee shall be personally liable for any action, determination or interpretation made in good faith with respect to the Plan, this Agreement or the Option.  In its absolute discretion, the Board may at any time and from time to time exercise any and all rights and duties of the Committee under the Plan and this Agreement, except with respect to matters which under Rule 16b-3 or Section 162(m) of the Code, or any regulations or rules issued thereunder, are required to be determined in the sole discretion of the Committee.

 

4.2           Option Not Transferable.  Neither the Option nor any interest or right therein or part thereof shall be sold, pledged, assigned or transferred in any manner other than by will or the laws of descent and distribution, unless and until the Option has been exercised, or the shares underlying such Option have been issued, and all restrictions applicable to such shares have lapsed.  Neither the Option nor any interest or right therein or part thereof shall be liable for the debts, contracts or engagements of the Director or his or her successors in interest or shall be subject to disposition by transfer, alienation, anticipation, pledge, encumbrance, assignment or any other means whether such disposition be voluntary or involuntary or by operation of law by judgment, levy, attachment, garnishment or any other legal or equitable proceedings (including bankruptcy), and any attempted disposition thereof shall be null and void and of no effect, except to the extent that such disposition is permitted by the preceding sentence.

 

 

4.3           Shares to Be Reserved.  The Company shall at all times during the term of the Option reserve and keep available such number of shares of Common Stock as will be sufficient to satisfy the requirements of this Agreement.

 

4.4           Notices.  Any notice to be given under the terms of this Agreement to the Company shall be addressed to the Company in care of the Secretary, and any notice to be given to the Director shall be addressed to the Director at the address given beneath the Director’s signature hereto.  By a notice given pursuant to this Section 4.4, either party may hereafter designate a different address for notices to be given to that party.  Any notice which is required to be given to the Director shall, if the Director is then deceased, be given to the Director’s personal representative if such representative has previously informed the Company of such representative’s status and address by written notice under this Section 4.4.  Any notice shall be deemed duly given when enclosed in a properly sealed envelope or wrapper addressed as aforesaid, deposited (with postage prepaid) in a post office or branch post office regularly maintained by the United States Postal Service.

 

4.5           Titles.  Titles are provided herein for convenience only and are not to serve as a basis for interpretation or construction of this Agreement.

 

4.6           [RESERVED]

 

4.7           Notification of Disposition.  The Director shall give prompt notice to the Company of any disposition or other transfer of any shares of stock acquired under this Agreement if such disposition or transfer is made (a) within two (2) years from the Date of Grant with respect to such shares or (b) within one (1) year after the transfer of such shares to him.  Such notice shall specify the date of such disposition or other transfer and the amount realized, in cash, other property, assumption of indebtedness or other consideration, by the Director in such disposition or other transfer.

 

4.8           Construction.  This Agreement shall be administered, interpreted and enforced under the laws of the State of California without regard to conflicts of laws thereof.

 

4.9           Conformity to Securities Laws.  The Director acknowledges that the Plan is intended to conform to the extent necessary with all provisions of the Securities Act and the Exchange Act and any and all regulations and rules promulgated by the Securities and Exchange Commission thereunder, and state securities laws and regulations.  Notwithstanding anything herein to the contrary, the Plan shall be administered, and the Option is granted and may be exercised, only in such a manner as to conform to such laws, rules and regulations.  To the extent permitted by applicable law, the Plan and this Agreement shall be deemed amended to the extent necessary to conform to such laws, rules and regulations.

 

 

IN WITNESS WHEREOF, this Agreement has been executed and delivered by the parties hereto.

 

	
 
    	
 
    	
CHEROKEE   INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By
    	
/s/   Mark DiSiena
    
	
 
    	
 
    	
 
    	
Mark   DiSiena
    
	
 
    	
 
    	
 
    	
Chief   Financial Officer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
/s/   Jess M. Ravich
    	
 
    	
 
    
	
Director
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Address
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Director’s   Social Security Number:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    

 

 

Exhibit A

 

FORM OF EXERCISE NOTICE

 

Cherokee Inc.

6835 Valjean Avenue

Van Nuys, California 91406

 

Attention:  Corporate Secretary

 

Re:          Exercise of Stock Option

 

Ladies and Gentlemen:

 

1.             Exercise of Option.  The undersigned Director,                                               , was granted an option (the “Option”) to purchase shares of the Common Stock, par value $0.02 per share (“Common Stock”), of Cherokee Inc., a Delaware corporation (the “Company”), effective as of                               , pursuant to the Stock Option Agreement, dated                              (the “Option Agreement”).  The undersigned hereby elects to exercise the Option as follows:

 

The undersigned hereby elects to exercise the Option as to                        shares of the Common Stock, in accordance with Section 2.1 of the Option Agreement (the “Shares”).

 

2.             Payment.  The undersigned has enclosed herewith                      (representing full payment for such Shares in accordance with Section 3.3 of the Option Agreement).

 

3.             Binding Effect.  The undersigned agrees that the Shares are being acquired in accordance with and subject to the terms, provisions and conditions of the Option Agreement set forth therein, to all of which the undersigned hereby expressly assent.  This Agreement shall inure to the benefit of and be binding upon the heirs, executors, administrators, successors and assigns of the undersigned.

 

 

The undersigned understands that he is purchasing the Shares pursuant to the terms of the Option Agreement, a copy of which the undersigned has received and carefully read and understands.

 

 

	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Receipt   of the above is hereby acknowledged
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
CHEROKEE   INC.,
    	
 
    	
 
    
	
a   Delaware corporation
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Title:

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