Document:

cbio-ex102_25.htm

Exhibit 10.2

CATALYST BIOSCIENCES, INC.

(Formerly, Targacept, Inc.)

2015 STOCK INCENTIVE PLAN

 

Nonqualified Stock Option Agreement

(Employees)

 

THIS AGREEMENT (together with Schedule A attached hereto, the “Agreement”), effective as of the date specified as the “Grant Date” on Schedule A attached hereto, is between CATALYST BIOSCIENCES, INC., a Delaware corporation (the “Company”), and the individual identified on Schedule A attached hereto, an Employee of the Company or an Affiliate (the “Participant”).

R E C I T A L S :

 

In furtherance of the purposes of the Catalyst Biosciences, Inc. (formerly, Targacept, Inc.) 2015 Stock Incentive Plan, as it may be hereafter amended (the “Plan”), and in consideration of the services of the Participant and such other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Company and the Participant hereby agree as follows:

1.Incorporation of Plan. The rights and duties of the Company and the Participant under this Agreement shall in all respects be subject to and governed by the provisions of the Plan, the terms of which are incorporated herein by reference. In the event of any conflict between the provisions in this Agreement and those of the Plan, the provisions of the Plan shall govern, unless the Administrator determines otherwise. Unless otherwise defined herein, capitalized terms in this Agreement shall have the same definitions as set forth in the Plan.

2.Grant of Option; Term of Option. The Company hereby grants to the Participant pursuant to the Plan, as a matter of separate inducement and agreement in connection with his or her employment with or service to the Company, and not in lieu of any salary or other compensation for his or her services, the right and option (the “Option”) to purchase all or any part of such aggregate number of shares (the “Shares”) of common stock of the Company (the “Common Stock”) at a purchase price (the “Option Price”) as specified on Schedule A, attached hereto, and subject to such other terms and conditions as may be stated herein or in the Plan or on Schedule A. The Participant expressly acknowledges that the terms of Schedule A shall be incorporated herein by reference and shall constitute part of this Agreement. The Company and the Participant further acknowledge and agree that the signatures of the Company and the Participant on the Grant Notice contained in Schedule A shall constitute their acceptance of all of the terms of this Agreement and their agreement to be bound by the terms of this Agreement. The Option shall be designated as a Nonqualified Option, as stated on Schedule A. Except as otherwise provided in the Plan or this Agreement, this Option will expire if not exercised in full by the Expiration Date specified on Schedule A.

3.Exercise of Option. Subject to the terms of the Plan and this Agreement, the Option shall become exercisable on the date or dates, and subject to such conditions, as are set forth on Schedule A attached hereto. To the extent that the Option is exercisable and not exercised, the 

 

Exhibit 10.2

Option shall accumulate and be exercisable by the Participant in whole or in part at any time prior to expiration of the Option, subject to the terms of the Plan and this Agreement. The Participant expressly acknowledges that the Option may vest and be exercisable only upon such terms and conditions as are provided in this Agreement and the Plan.  In addition, notwithstanding any other provision of the Agreement to the contrary, in the event that the Participant has entered into an employment agreement or similar agreement with the Company that provides for vesting of the Option in whole or in part upon the occurrence of a change in control or termination of employment under certain conditions or other event(s), the Participant shall be entitled to the greater of the benefits provided under the employment agreement or similar agreement or this Agreement, and such employment agreement or similar agreement shall not be construed to reduce in any way the benefits otherwise provided to the Participant under this Agreement, or vice versa.  Upon the exercise of an Option in whole or in part and payment of the Option Price in accordance with the provisions of the Plan and this Agreement, the Company shall, as soon thereafter as practicable, deliver to the Participant a certificate or certificates for the Shares purchased. Payment of the Option Price may be made (i) in cash or by cash equivalent; and, except where prohibited by the Administrator or Applicable Law, payment may also be made (ii) by delivery (by either actual delivery or attestation) of shares of Common Stock owned by the Participant for such time period, if any, as may be determined by the Administrator; (iii) by shares of Common Stock withheld upon exercise but only if and to the extent that payment by such method does not result in variable accounting or other accounting consequences deemed unacceptable to the Company; (iv) by delivery of written notice of exercise to the Company and delivery to a broker of written notice of exercise and irrevocable instructions to promptly deliver to the Company the amount of sale or loan proceeds to pay the Option Price; (v) by such other payment methods as may be approved by the Administrator and which are acceptable under Applicable Law; or (vi) by any combination of the foregoing methods. Shares delivered or withheld in payment of the Option Price shall be valued at their Fair Market Value on the date of exercise, determined in accordance with the terms of the Plan.

4.No Right of Employment or Service; Forfeiture of Option; No Right to Future Awards. Neither the Plan, this Agreement nor any other action related to the Plan shall confer upon the Participant any right to continue in the employ or service of the Company or an Affiliate or interfere in any way with the right of the Company or an Affiliate to terminate the Participant’s employment or service at any time. Except as otherwise provided in the Plan or this Agreement, all rights of the Participant with respect to the Option shall terminate upon termination of the Participant’s employment or service of the Participant with the Company or an Affiliate.  The grant of the Option does not create any obligation to grant further awards.

5.Termination of Employment.  Except as may be otherwise provided in the Plan or this Agreement, the Option shall not be exercised unless the Participant is, at the time of exercise, an Employee and has been an Employee continuously since the date the Option was granted, subject to the following:

(a)The employment relationship of the Participant shall be treated as continuing intact for any period that the Participant is on military or sick leave or other bona fide leave of absence, provided that the period of such leave does not exceed 90 days, or, if longer, as long as the Participant’s right to reemployment is guaranteed either by statute or by contract. The employment relationship of the Participant shall also be treated 

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Exhibit 10.2

as continuing intact while the Participant is not in active service because of Disability. The Administrator shall have sole authority to determine whether the Participant is disabled and, if applicable, the Participant’s Termination Date.

(b)Except as may be otherwise provided in the Plan or this Agreement, if the employment of the Participant is terminated because of Disability or death, the Option may be exercised only to the extent vested and exercisable on the Participant’s Termination Date, and any unvested portion of the Option shall terminate as of the Termination Date. The vested portion of the Option must be exercised, if at all, prior to the first to occur of the following, as applicable: (X) the close of the period of one year next succeeding the Termination Date; or (Y) the close of the Option Period. In the event of the Participant’s death, the Option shall be exercisable by such person or persons as shall have acquired the right to exercise the Option by will or by the laws of intestate succession.

(c)Except as may be otherwise provided in the Plan or this Agreement, if the employment of the Participant is terminated for any reason other than Disability, death or for Cause, the Option may be exercised to the extent vested and exercisable on his or her Termination Date, and any unvested portion of the Option shall terminate as of the Termination Date. The vested portion of the Option must be exercised, if at all, prior to the first to occur of the following, whichever shall be applicable: (X) the close of the period of three months next succeeding the Termination Date; or (Y) the close of the Option period. If the Participant dies following such termination of employment and prior to the date specified in (X) of this subparagraph (c), the Participant shall be treated as having died while employed under subparagraph (b) immediately preceding (treating for this purpose the Participant’s date of termination of employment as the Termination Date). In the event of the Participant’s death, the Option shall be exercisable by such person or persons as shall have acquired the right to exercise the Option by will or by the laws of intestate succession.

(d)Except as may be otherwise provided in the Plan or this Agreement, if the employment of the Participant is terminated for Cause, the Option, whether vested or unvested, shall lapse and no longer be exercisable as of his or her Termination Date, as determined by the Administrator.

6.Nontransferability of Option. The Option shall not be transferable (including by sale, assignment, pledge or hypothecation) other than by will or the laws of intestate succession, except for transfers if and to the extent  permitted by the Administrator in a manner consistent with the registration provisions of the Securities Act of 1933, as amended (the “Securities Act”). Except as may be permitted by the preceding sentence, the Option shall be exercisable during the Participant’s lifetime only by him or her or by his or her guardian or legal representative. The designation of a beneficiary in accordance with the Plan does not constitute a transfer.

7.Superseding Agreement; Binding Effect. This Agreement supersedes any statements, representations or agreements of the Company with respect to the grant of the Option, any other equity-based awards or any related rights, and the Participant hereby waives any rights or claims related to any such statements, representations or agreements. This Agreement does not supersede or amend any existing confidentiality agreement, nonsolicitation agreement, noncompetition agreement, employment agreement or any other similar agreement between the 

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Exhibit 10.2

Participant and the Company, including, but not limited to, any restrictive covenants contained in such agreements. This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective executors, administrators, heirs, successors and assigns.

8.Governing Law. Except as otherwise provided in the Plan or herein, this Agreement shall be construed and enforced according to the laws of the State of Delaware, without regard to the conflict of laws provisions of any state, and in accordance with applicable federal laws of the United States.

9.Amendment; Waiver.  Any amendment or modification to this Agreement shall be made in accordance with the terms of the Plan.  Without limiting the effect of the foregoing, the Administrator shall have unilateral authority to amend the Plan and this Agreement (without Participant consent) to the extent necessary to comply with Applicable Law or changes to Applicable Law (including but in no way limited to Code Section 409A and federal securities laws).  The waiver by the Company of a breach of any provision of this Agreement by the Participant shall not operate or be construed as a waiver of any subsequent breach by the Participant.  

10.No Rights as Stockholder. The Participant and his or her legal representatives, legatees or distributees shall not be deemed to be the holder of any Shares subject to the Option and shall not have any rights of a stockholder unless and until certificates for such Shares have been issued and delivered to him or her or them (or, in the case of uncertificated shares, other written notice of ownership in accordance with Applicable law shall have been provided).

11.Withholding; Tax Matters.

(a)The Participant acknowledges that the Company shall require the Participant to pay the Company in cash the amount of any tax or other amount required by any governmental authority to be withheld and paid over by the Company to such authority for the account of the Participant, and the Participant agrees, as a condition to the grant of the Option and delivery of the Shares or any other benefit, to satisfy such obligations. Notwithstanding the foregoing, the Administrator may in its discretion establish procedures to permit the Participant to satisfy such obligations in whole or in part, and any local, state, federal, foreign or other income tax obligations relating to the Option, by electing (the “election”) to have the Company withhold shares of Common Stock from the Shares to which the Participant is entitled. The number of Shares to be withheld shall have a Fair Market Value as of the date that the amount of tax to be withheld is determined as nearly equal as possible to (but not exceeding) the amount of such obligations being satisfied. Each election must be made in writing to the Administrator in accordance with election procedures established by the Administrator.

(b)The Participant acknowledges that he or she is solely responsible and liable for the satisfaction of all taxes and penalties that may arise in connection with the Option (including but not limited to any taxes arising under Code Section 409A), and the Company shall not have any obligation to indemnify or otherwise hold the Participant harmless from any or all such taxes.   The Participant further acknowledges that the Company has made no warranties or representations to the Participant with respect to the tax consequences 

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Exhibit 10.2

(including, but not limited to, income tax consequences) related to the transactions contemplated by this Agreement, and the Participant is in no manner relying on the Company or its representatives for an assessment of such tax consequences. The Participant acknowledges that there may be adverse tax consequences upon acquisition or disposition of the Shares subject to the Option and that he or she has been advised that he or she should consult with his or her own attorney, accountant, and/or tax advisor regarding the decision to enter into this Agreement and the consequences thereof. The Participant also acknowledges that the Company has no responsibility to take or refrain from taking any actions in order to achieve a certain tax result for the Participant.

12.Administration. The authority to construe and interpret this Agreement and the Plan, and to administer all aspects of the Plan, shall be vested in the Administrator, and the Administrator shall have all powers with respect to this Agreement as are provided in the Plan, including but not limited to the sole authority to determine whether and to what degree the Option has vested. Any interpretation of this Agreement by the Administrator and any decision made by it with respect to this Agreement are final and binding.

13.Notices. Except as may be otherwise provided by the Plan or determined by the Administrator, any written notices provided for in this Agreement or the Plan shall be in writing and shall be deemed sufficiently given if either hand delivered or if sent by fax or overnight courier, or by postage paid first class mail. Notices sent by mail shall be deemed received three business days after mailed but in no event later than the date of actual receipt. Notices shall be directed, if to the Participant, at the Participant’s address indicated on Schedule A (or such other address as may be designated by the Participant in a manner acceptable to the Administrator), or, if to the Company, at the Company’s principal office, attention Chief Financial Officer, Catalyst Biosciences, Inc. Notice may also be provided by electronic submission, if and to the extent permitted by the Administrator.

14.Severability. The provisions of this Agreement are severable and if any one or more provisions may be determined to be illegal or otherwise unenforceable, in whole or in part, the remaining provisions shall nevertheless be binding and enforceable.

15.Restrictions on Option and Shares. The Company may impose such restrictions on the Option and the Shares or other benefits underlying the Option as it may deem advisable, including without limitation restrictions under the federal securities laws, the requirements of any stock exchange or similar organization and any blue sky, state or foreign securities laws or other laws applicable to such Option or Shares. Notwithstanding any other provision in the Plan or this Agreement to the contrary, the Company shall not be obligated to issue, deliver or transfer shares of Common Stock, to make any other distribution of benefits, or to take any other action, unless such delivery, distribution or action is in compliance with Applicable Law (including but not limited to the requirements of the Securities Act). The Company is under no obligation to register the Shares with the Securities and Exchange Commission or to effect compliance with the exemption, registration, qualification or listing requirements of any state securities laws, stock exchange or similar organization, and the Company will have no liability for any inability or failure to do so.  The Company may cause a restrictive legend or legends to be placed on any certificate for Shares issued pursuant to the exercise of the Option in such form as may be prescribed from time to time by Applicable Law or as may be advised by legal counsel.

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Exhibit 10.2

16.Effect of Certain Changes in Status.  Notwithstanding the other terms of the Plan or this Agreement, the Administrator has the sole discretion to determine (taking into account any Code Section 409A considerations) at any time the effect, if any, of any changes in the Participant’s status as an employee, including but not limited to a change from full-time to part-time, or vice versa, or other similar changes in the nature or scope of the Participant’s employment, on the Option (including but not limited to modifying the vesting, exercisability and/or earning of the Option).

17.Right of Offset. Notwithstanding any other provision of the Plan or this Agreement, the Company may at any time (subject to any Code Section 409A considerations) reduce the amount of any payment otherwise payable to or on behalf of the Participant by the amount of any obligation of the Participant to or on behalf of the Company that is or becomes due and payable, and the Participant shall be deemed to have consented to such reduction.

18.Compliance with Recoupment, Ownership and Other Policies or Agreements.  As a condition to receiving this Option, the Participant agrees that he or she shall abide by all provisions of any equity retention policy, stock ownership guidelines, compensation recovery policy and/or other policies adopted by the Company, each as in effect from time to time and to the extent applicable the Participant.  In addition, the Participant shall be subject to such compensation recovery, recoupment, forfeiture or other similar provisions as may apply to him or her under Applicable Law.

19.Counterparts; Further Instruments. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. The parties hereto agree to execute such further instruments and to take such further action as may be reasonably necessary to carry out the purposes and intent of this Agreement.

[Signatures of the Company and the Participant follow on Schedule A/Grant Notice.]

 

 

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Exhibit 10.2

CATALYST BIOSCIENCES, INC.

(Formerly, Targacept, Inc.)
2015 STOCK INCENTIVE PLAN

Nonqualified Stock Option Agreement
(Employee)

Schedule A/Grant Notice

	
1.
	
Pursuant to the terms and conditions of the Company’s 2015 Stock Incentive Plan, as it may hereafter be amended (the “Plan”), you (the “Participant”) have been granted an option (the “Option”) to purchase shares (the “Shares”) of our Common Stock as outlined below.

		
	
Name of Participant:
	
«Name_Full_F_M_L»

	
Address:
	
«Address_Line_1»
«Address_City», «Address_State»  «Address_Postal_Code»

	
Grant Date:
	
«Grant_Date»

	
Grant Number:
	
«Grant_ID»

	
Number of Shares Subject to Option
	
«GrantedOriginal_Target»

	
Option Price:
	
«Grant_Exercise_Price»

	
Type of Option:    
	
«Grant_Type»

	
Vesting Commencement Date:
	
«Vest_From_Date»

	
Expiration Date (Last day of Option Period):
	
«Expiration_Date_Current»

	
Vesting Schedule/Conditions:
	
 

	
«Vesting_Schedule_Name»

	
2.
	
By my signature below, I, the Participant, hereby acknowledge receipt of this Grant Notice and the Option Agreement (the “Agreement”) dated October 22, 2015, between the Participant and Catalyst Biosciences, Inc. (the “Company”) which is attached to this Grant Notice.  I understand that the Grant Notice and other provisions of Schedule A herein are incorporated by reference into the Agreement and constitute a part of the Agreement. By my signature below, I further agree to be bound by the terms of the Plan and the Agreement, including but not limited to the terms of this Grant Notice and the other provisions of Schedule A contained herein.  The Company reserves the right to treat the Option and the Agreement as cancelled, void and of no effect if the Participant fails to return a signed copy of the Grant Notice within 30 days of grant date stated above.

Signature:Date:

 

Agreed to by:

CATALYST BIOSCIENCES, INC.

 

By:

     Nassim Usman, Ph.D.

     President and Chief Executive Officer

Attest:

 

 

Fletcher Payne
Chief Financial Officer

Note: If there are any discrepancies in the name or address shown above, please make the appropriate corrections on this form and return to Catalyst Biosciences, Inc., attention Chief Financial Officer.  Please retain a copy of the Agreement, including this Grant Notice, for your files.vnce-ex101_6.htm

 

Exhibit 10.1

AGREEMENT

 

This Agreement (this “Agreement”) is entered into on July 13, 2017 (the “Effective Date”), by and between Vince, LLC, a Delaware limited liability company, with a principal place of business at 500 fifth Avenue, 20th Floor, New York, NY 10110 (“Buyer”) and Rebecca Taylor, Inc., a New York corporation with a principal place of business at 307 W. 36th Street, New York, NY 10018 (“Supplier”). Buyer and Supplier are each referred to as a “Party” and collectively, the “Parties.”

 

Introduction

 

WHEREAS, Supplier intends to purchase certain VINCE-branded products from certain vendors and manufacturers of such goods located throughout the world; and 

 

WHEREAS, Buyer intends to purchase from Supplier all such VINCE-branded goods. 

 

NOW, THEREFORE, in consideration of the foregoing premises and the mutual covenants and agreements hereinafter set forth, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

 

ARTICLE 1

PURCHASE AND SALE OF VINCE GOODS

 

1.1  License to Purchase Vince Goods.  Subject to the terms and conditions of this Agreement, Buyer hereby licenses to Supplier the non-exclusive, limited right to purchase certain Vince-branded goods (the “Vince Goods”) from approved vendors and manufacturers identified by Buyer (each a “Vendor” and collectively, the “Vendors”) through a purchase order in substantially the same form as that attached as Exhibit A (a “Supplier Order”) at a price identified therein (the “Supplier Price”). The authority granted to Supplier under this Article 1.1 arises only pursuant to a corresponding purchase order from Buyer to purchase the relevant Vince Goods from Supplier in substantially the same form as that attached as Exhibit B hereto (a “Vince Order”) and at a price identified therein (the “Vince Price”). 

 

1.2  Unless otherwise notified by Buyer and subject to the terms and conditions of this Agreement, within three (3) business days after its receipt of a Vince Order, Supplier shall: (i)  issue a Supplier Order to the Vendor identified in the applicable Vince Order for the specified Vince Goods, quantities, specifications and delivery schedules provided in the relevant Vince Order, except for the purchase price which shall be the Supplier Price; and (ii) apply for a letter of credit to such Vendor in the amount equal to the price of the Vince Goods specified in the Supplier Order (a “Letter of Credit”) and upon receipt of the same from the issuing bank, promptly furnish the Letter of Credit as well as any documents required thereunder; provided Supplier may reject any Vince Order should such Vince Order cause Supplier to exceed its availability under its credit facility or otherwise cause undue financial stress on Supplier as determined in Supplier’s sole discretion.  

 

 

 

 

1.3  Within two (2) business days after being notified by Vendor that the Vince Goods are ready to be delivered (a “Vendor Notice”), Supplier shall invoice Buyer in the amount specified in the Vince Order. Buyer shall pay such amount by wire transfer of immediately available funds to Supplier’s designated account within two (2) business days from the receipt of such invoice from Supplier or within such time as otherwise extended by Supplier in Supplier’s sole discretion (a “Timely Payment”). Immediately upon receipt of the applicable Timely Payment from Buyer, but in no event more than five (5) business days after the date of the Vendor Notice, regardless of any Payment Default, Supplier shall provide to Vendor all documentation required for Vendor to draw on the applicable Letter of Credit, at which time Supplier shall take full possession and title of the Vince Goods free and clear of all mortgages, liens, claims, charges, encumbrances, security interests or pledges of any kind or nature (“Liens”). Provided Buyer has made the Timely Payment on the relevant Vince Order, immediately upon taking possession and title of the Vince Goods, Supplier shall transfer title and possession to Buyer and Buyer shall take delivery from Supplier of the Vince Goods free and clear of all Liens (the “P&S”). The P&S shall be conducted in accordance with the process set out in Exhibit C hereto, as amended from time to time upon agreement by the Parties in writing. 

 

1.4  Buyer shall, at the request of Supplier, issue an irrevocable letter of authorization to Supplier in which Buyer shall acknowledge Supplier’s authority to purchase the Vince Goods and/or Supplier’s Right of Resale, as defined below, if any, in substantially the same form as that attached as Exhibit D hereto (each a “Letter of Authorization”). Letters of Authorization issued hereunder shall be set to expire on December 31, 2018 and shall be renewed for periods of one (1) year thereafter during the Term. Notwithstanding the foregoing, all Letters of Authorization issued hereunder shall expire automatically upon termination or expiration of this Agreement, except to the extent such expiration would interfere with Supplier’s Right of Resale, if any, in which case all relevant Authorization Letters shall remain in effect and/or be renewed by Buyer as necessary to ensure Supplier’s ability to fully exercise its Right of Resale. In no event will any Vince Order be accepted or a Supplier Order placed with a Vendor without a Letter of Authorization in place with an expiration date of at least sixty (60) days past the Supplier Order’s scheduled ship date.   

 

ARTICLE 2

PRICE AND PAYMENT

	
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2.1  The Vince Price shall be equal to one hundred and three and one half percent (103.5%) of the Supplier Price.

 

2.2  All amounts due under this Agreement shall be in U.S. dollars.

 

ARTICLE 3

TITLE, RISK OF LOSS AND INSURANCE 

	
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3.1  Title and Risk of Loss. In no event shall title of the Vince Goods pass to Buyer until Buyer has made the related Timely Payment. Notwithstanding the timing of when title shall pass to Buyer, the risk of loss, flood, fire, theft or damage to the Vince Goods shall be borne solely by Buyer at all times and in no event shall Supplier be responsible to Buyer for any damages arising from any such loss. In the event Supplier exercises its Right of Resale, if any, the risk of 

2

 

 

loss shall pass to Supplier upon the Vince Goods being removed by Supplier from the warehouse location of Buyer’s freight forwarder. 

 

3.2  Insurance. Buyer shall keep the Vince Goods fully insured, at the sole expense of Buyer, for the benefit of Supplier and Buyer with such insurance companies as shall be reasonably satisfactory to Buyer provided such policies of insurance include, without limitation, comprehensive general liability insurance, commercial property, property damage and product liability insurance (based on occurrence, not claims made) covering the sale and use of the Vince Goods in amounts not less than two million dollars ($2,000,000) per person per occurrence.  Buyer (i) shall name Supplier as an additional insured and loss payee under the insurance policy that will provide coverage for the Vince Goods pursuant to the terms hereof, including pursuant to Article 3.1; and (ii) will provide Supplier within three (3) business days of the date of any request from Supplier with a certificate of insurance (A) evidencing that Supplier has been named an additional insured under such insurance policy and (B) indicating that no coverage shall be canceled or changed on less than thirty (30) days’ prior written notice to Supplier.

	
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5ARTICLE 4

REPRESENTATIONS AND WARRANTIES OF SUPPLIER

	
6
	

To induce Buyer to enter into this Agreement, Supplier represents and warrants the following: 

	
4
	

4.1  Organization, Power and Standing.  Supplier is a corporation duly organized, validly existing and in good standing under the laws of the State of New York and has all requisite corporate power and authority to (i) carry on its business as currently conducted and (ii) enter into this Agreement and perform its respective obligations hereunder. 

 

4.2  Validity and Enforceability. The execution, delivery and performance by the Supplier of this Agreement, and the consummation of the transactions contemplated hereby, have been duly authorized by all necessary corporate action of Supplier. This Agreement has been duly executed and delivered by Supplier and constitutes the valid and binding agreement of Supplier and is enforceable against it in accordance with its terms and subject to laws of general application relating to bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting creditors’ rights generally and rules of law governing specific performance, injunctive relief or other equitable remedies.

 

4.3  Required Consents.  All consents, orders, authorizations, approvals, declarations or filings, including, without limitation, any consent, approval or authorization of or declaration or filing with any party, including any governmental authority, if any, required by Supplier for or in connection with the execution, delivery or performance of this Agreement, have been obtained as of the date hereof. 

 

4.4  No Conflict.  The execution and delivery of this Agreement and the consummation of the transactions contemplated hereby will not (i) conflict with or result in (or with notice or lapse of time result in) a breach of or a default under, or violate any provision of, any applicable law, rule or regulation or any agreement, commitment, contract, instrument, order, decree, ruling 

3

 

 

or injunction to which Supplier is bound; (ii) result in the imposition of any Lien on the Vince Goods before purchase by Buyer hereunder; and (iii) not conflict with Supplier’s organizational documents, including but not limited to its certificate of incorporation and/or bylaws

 

ARTICLE 5

REPRESENTATIONS AND WARRANTIES OF BUYER

 

To induce Supplier to enter into this Agreement, Buyer represents and warrants the following:

	
5
	

5.1  Organization, Power and Standing.  Buyer is a limited liability company duly organized, validly existing and in good standing under the laws of the State of Delaware and has all requisite power and authority to (i) carry on its business as currently conducted and (ii) enter into this Agreement and perform its obligations hereunder. 

 

5.2  Validity and Enforceability.  The execution, delivery and performance by the Buyer of this Agreement, and the consummation of the transactions contemplated hereby, have been duly authorized by all necessary company action of Buyer.  This Agreement has been duly executed and delivered by Buyer and constitutes the valid and binding agreement of Buyer and is enforceable against it in accordance with its terms and subject to laws of general application relating to bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting creditors’ rights generally and rules of law governing specific performance, injunctive relief or other equitable remedies.

 

5.3  Required Consents.  All consents, orders, authorizations, approvals, declarations or filings, including, without limitation, any consent, approval or authorization of or declaration or filing with any party, including any governmental authority, if any, required by Buyer for or in connection with the execution, delivery or performance of this Agreement, have been obtained as of the date hereof. 

 

5.4  No Conflict.  The execution and delivery of this Agreement and the consummation of the transactions contemplated hereby will not (i) conflict with or result in (or with notice or lapse of time result in) a breach of or a default under, or violate any provision of, any applicable law, rule or regulation or any agreement, commitment, contract, instrument, order, decree, ruling or injunction to which Buyer is bound; (ii) result in the imposition of any Lien on the Vince Goods before purchase by Buyer hereunder; and (iii) not conflict with Buyer’s organizational documents, including but not limited to its certificate of incorporation and/or bylaws

 

5.5  Buyer will take all reasonable steps to ensure that the Vince Goods and their packaging will not at any time infringe on the intellectual property rights of any third party;

 

5.6  Buyer takes and will at all times continue to take all reasonable measures to ensure that the Vendors selected comply with all applicable laws in the manufacture and delivery of the Vince Goods and that such Vendors do not and will not, at any time, employ slave labor or child labor, as they are defined in the country in which the manufacture takes place, and in no event use 

4

 

 

or employ any labor younger than sixteen (16) years of age, forced labor or any other type of indentured labor in the manufacture of the Vince Goods; and

 

5.7  Buyer takes and will continue to take all reasonable measures to ensure that the Vendors selected operate their business in an ethical fashion and that they keep themselves informed of and execute and adhere to Buyer’s code of ethical conduct, including, inter alia, not engaging in any bribery of government or other administrative officials and adhering to and abiding by the United States Foreign Corrupt Practices Act.

 

ARTICLE 6

RIGHT OF RESALE IN THE EVENT OF PAYMENT DEFAULT

	
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6.1  Right of Resale. In the event Buyer fails to make the Timely Payment of any Vince Order hereunder (a “Payment Default”), then, subject to the terms and conditions of this Agreement, Supplier shall have the right to refuse to sell the Vince Goods to Buyer and shall have the right to sell the Vince Goods to any third party at the price, time and manner as Supplier, in its sole discretion, chooses (the “Right of Resale”).  

 

6.2  Resale IP License. Subject to the terms and conditions of this Agreement, Buyer hereby licenses to Supplier the limited and non-exclusive right to use the Intellectual Property only as necessary for Supplier to perform its Right of Resale, if any, (the “Resale IP License”) anywhere in the world. In exercising its Right of Resale, Supplier shall have the right, but not the obligation to remove any VINCE-branded tags from the Vince Goods and shall have no obligation to sell the Vince Goods using the Vince Marks or trade name, provided, however, that if Supplier does use the Vince Marks or any reasonably recognizable portion thereof in any way to resell the Vince Goods pursuant to this Article 6, Supplier shall use reasonable efforts to preserve the Vince Goods in good and saleable condition and shall not alter any of the Vince Marks as they appear on or in connection with those goods. Supplier has the right to sublicense this Resale IP License on all the same terms and conditions as provided herein to any third-party reseller of the Vince Goods to whom Supplier sells the Vince Goods (“Reseller”). This Resale IP License shall end and Supplier and any Reseller shall cease any use of the Intellectual Property and any of the Authorization Letters on the date on which all Vince Goods subject to a Supplier Order or in the Supplier’s or Reseller’s possession or control have been sold to Buyer or to third parties. This Resale IP License is at all times subject to all provisions of Article 7 hereof. 

 

 

ARTICLE 7

INTELLECTUAL PROPERTY AND CONFIDENTIAL INFORMATION

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7.1   Supplier acknowledges and agrees that Buyer is and remains at all times the exclusive owner of all rights, title and interest in and to the intellectual property embodied in the Vince Goods, including their packaging, labels and tags, the VINCE trademark and any stylized version thereof, including without limitation the  and stylized marks (collectivley, the “Vince Marks”), and any other copyrights, trademarks, rights of publicity or other intellectual property used by Supplier pursuant to this Agreement and the Confidential Information in any form or embodiment thereof and any goodwill that has or which becomes attached thereto 

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(collectively, the “Intellectual Property”).  

 

7.2  This Agreement does not grant or create any general authority in Supplier or any Reseller to produce, sell, distribute, or otherwise dispose of any goods incorporating any of the Intellectual Property or any items, which Buyer deems confusingly similar thereto.  Authority to use any of the Intellectual Property or to apply such Intellectual Property to products is granted only by and limited to Vince Orders and as otherwise provided in Article 6 of this Agreement.  Any authority granted by any Vince Order is deemed terminated when the Vince Order has been fully performed by both Parties, is otherwise revoked or terminated prior to delivery of the Vince Goods to Supplier in accordance with any terms of revocation or cancelation applicable to the Supplier Order with Vendor, or, in the event of a Payment Default, upon Supplier’s completion of its Right of Resale. Except for de minimis production overages, any Vince Goods manufactured for or purchased by Supplier in excess of the quantity designated in a Vince Order shall be and are hereby deemed counterfeit. 

 

7.3  Except as required to perform hereunder, the Parties shall not disclose, use, appropriate, disseminate, copy, modify or recreate, directly or indirectly and shall prevent their respective directors, officers, employees, agents and independent contractors (“Personnel”) from using, disseminating, copying, modifying, appropriating or recreating, whether directly or indirectly, any of the other Party’s Confidential Information. By way of example, but not limitation, Supplier shall not at any time use any of the information related to pricing or sourcing of Vince Goods for its own benefit, including discussing the same with any Vendors, regardless of whether those vendors are, at the time of Supplier’s disclosure, already in possession of such information. Except as otherwise necessary for Supplier to exercise Supplier’s Right of Resale, within thirty (30) days after the termination or expiration of this Agreement, the Parties shall return to one another or destroy, at the other Party’s request and under its supervision, any and all of the other Party’s Confidential Information. Upon termination of this Agreement, Supplier shall return to Buyer and/or destroy at Buyer’s request and under Buyer’s supervision the Intellectual Property and/or any renderings of the Vince Goods in any form in Supplier’s then current possession.  As used herein, “Confidential Information” shall mean all proprietary and confidential information and trade secrets of the Parties and their respective subsidiaries and affiliated companies about their respective businesses, including, without limitation, designs, drawings and graphics and information about colors, fabrics and other materials, Vendor identity, Vendor lists, factory and Vendor pricing, new and modified products, financial and business data and plans and related reports, production facility inspection procedures, forms/reports, guidelines and training, legal and inspection documents and related correspondence, documents and information; provided such information was obtained solely as a result of exchange of information under this Agreement.

 

7.4  Except to the extent necessary for Supplier to accomplish its Right of Resale or to the extent it is incidental to Supplier’s Right of Resale: (a) neither Party shall do or suffer to be done any act or thing which may, in any way (i) adversely affect any rights of the other Party in and to Confidential Information; (ii) directly or indirectly reduce the value of the same, or (iii) reasonably be expected to lead to unwarranted or unfavorable publicity to the other Party or its licensees; and (b)  Supplier shall not do or suffer to be done any act or thing, which may, in any way adversely affect the rights of Buyer in and to the Intellectual Property.  By way of example only, Supplier shall not, at any time, challenge Buyer’s ownership of or the validity of the 

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Intellectual Property or any application for registration thereof with an authorized registering body, nor shall Supplier seek to register or otherwise assert any ownership rights over the Intellectual Property or any portion, variation or simulation thereof or any goodwill arising therefrom. 

 

7.5  At Buyer’s request, Supplier shall execute any documents reasonably required by Buyer to confirm Buyer’s ownership of all rights title and interest in and to the Intellectual Property as well as the respective rights of Buyer and Supplier under this Agreement.  At Supplier’s request, Buyer shall execute any documents reasonably required for Supplier to exercise any of its rights or obligations under this Agreement.  

 

ARTICLE 8

CLAIMS AGAINST VENDORS

 

8.1  No Warranties from Supplier on Vince Goods. Regardless of any warranty that may be provided by Vendor under the Supplier Order, Buyer acknowledges and agrees that, as between the Parties hereto all Vince Goods sold by Supplier to Buyer pursuant to this Agreement shall be sold by Supplier on an “as is, where is” basis and without warranty of any kind from Supplier (other than that such Vince Goods will be free and clear of any Liens).  EXCEPT AS EXPRESSLY PROVIDED HEREIN, SUPPLIER PROVIDES NO WARRANTY WHATSOEVER RESPECTING THE VINCE GOODS AND DISCLAIMS ALL IMPLIED WARRANTIES, INCLUDING ALL IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE OR USE.  

 

8.2  Provided a Payment Default has not occurred, in the event that any claims arising out of or in connection with the Vince Goods shall be instituted against any Vendor, Supplier hereby assigns and transfers all rights, title and interest to any such claim to Buyer and hereby grants full authority to Buyer to institute and prosecute claims (if necessary including court proceedings) against such Vendor for and on behalf of the Supplier, where applicable.  

 

 

ARTICLE 9

TERM AND TERMINATION

	
 
	
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9.1  Term. This Agreement shall commence on the Effective Date and shall remain in full force and effect until terminated as provided herein (the “Term”). 

 

9.2  Termination. This Agreement may be terminated by either Party with or without cause by providing sixty (60) days prior written notice to the other Party. Notwithstanding the foregoing, either Party may terminate this Agreement immediately upon notice to the other Party in the following circumstances: (i) either Party materially breaches this Agreement and that breach remains uncured for a period of twenty (20) days after receipt of written notice thereof from the non-breaching Party, except as otherwise provided in Article 9.3; (ii) either party: (a) pursuant to or within the meaning of any law relating to insolvency or relief of debtors, commences a voluntary 

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case or proceeding; consent to the entry of an order for relief against it in an involuntary case; (b) consents to the appointment of a trustee, receiver, assignee, liquidator or similar official; (c) makes an assignment for the benefit of its creditors; (d) admits in writing its inability to pay its debts as they become due; or (e) becomes subject to a court order as a debtor or an order is issued on behalf of such party as a debtor; (iii) any representation or warranty made by the other Party in this Agreement is proven to be or to have been false in any material respect at any time during the Term; or (iv) a Change in Control of either Party.  For purposes of this Agreement, the term “Change in Control” shall mean and shall be deemed to have occurred on the date on which (a) the current stockholders of Supplier shall cease to have, directly or indirectly, beneficial ownership of, or voting control over, a majority of the voting power of the relevant Party whether by merger, issuance, sale or transfer of shares, other than the sale of Buyer’s capital stock by Buyer’s majority shareholder in the open market, or (b) the occurrence of a sale of all or substantially all of the assets of that Party occurs.  Any action by Buyer seeking to terminate or to actually terminate, repudiate, reject or otherwise avoid its obligations under this Agreement shall permit Supplier to cease performance under this Agreement without further notice to Buyer, it being understood that if Supplier elects to cease performance this shall not affect its other rights and remedies under this Agreement, including its Right of Resale and related Resale IP License. 

 

9.3  In the event of a Payment Default of Buyer, Supplier may terminate this Agreement with immediate effect except as to the provisions necessary and applicable to Supplier’s Right of Resale and any provisions which survive termination of this Agreement as provided herein. 

 

9.4  Notwithstanding anything to the contrary in this Agreement, in the event the expiration or termination of this Agreement is scheduled to occur while a Supplier Order is already in process and confirmed with a Vendor, the Parties shall fully perform their obligations under the relevant Vince Order and this Agreement shall remain in full force and effect until such performance is complete. 

 

 

ARTICLE 10

Exculpation; Indemnification

	
 
	
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10.1  Exculpation.  Except as relates to Supplier’s Right of Resale hereunder, neither Supplier, nor any officer, employee, representative, consultant or agent of Supplier or any of its Affiliates shall be liable to Buyer or any other party for, and Buyer releases Supplier from all claims relating to or arising out of the manufacture, maintenance or shipment of Vince Goods, provided that such claim does not arise out of an act or omission of Supplier which constitutes fraud, willful misconduct, or gross negligence.

 

10.2  Indemnification by Buyer. Buyer shall indemnify, defend and hold Supplier and its employees, officer, directors, affiliates, agents and consultants harmless from and against all third-party claims, liabilities, obligations, costs, damages, losses and expenses of any nature (including reasonable attorneys’ fees) (each, a “Claim” and collectively, the “Claims”), arising out of, relating to or in connection with (i) any breach or inaccuracy in the representations or warranties of Buyer in Article 5 hereof; (ii) any claim by Vendor against Supplier arising out of or relating to 

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the Vince Goods, provided such claim does not arise out of Supplier’s gross negligence or willful misconduct; (iii) the Vince Goods, including liability related to manufacturing practices or any defects caused therefrom and liability arising out of or in connection with customs issues and/or duties related to the Vince Goods; (iv) any claim that the Vince Goods, packaging or Vince Marks infringe on the intellectual property rights of any third party; and (v) Buyer’s fraud, gross negligence or willful misconduct. Buyer shall also indemnify, defend and hold Supplier harmless only to the extent of any related insurance proceeds from any loss, expense, claim or other cost arising from any loss, flood, fire, theft, or damage to the Vince Goods which occurs at a time when the risk of loss is held by Buyer as provided in Article 3.1.

 

10.3  Indemnification by Supplier.  Supplier shall indemnify, defend and hold Buyer and its employees, officers and directors, affiliates, agents and consultants harmless from and against all third-party Claims arising out of, relating to or in connection with (i) any breach or inaccuracy in the representations or warranties of Supplier in Article 4 hereof and (iii) any act or omission of Supplier which constitutes actual fraud, gross negligence or willful misconduct in connection with this Agreement. 

 

10.4  The Parties will cooperate with each other in connection with the defense, negotiation or settlement of any Claim to be indemnified hereunder and shall take no action and make no admission or statement not otherwise required by applicable law which would adversely affect the defense of any Claim hereunder.  In connection with any indemnification obligation for any Claim, each of Supplier and Buyer and their representatives shall be entitled to access, upon reasonable notice, the records and books of such other party hereto as they relate to the relevant Claim. 

 

Article 11

LIMITATION OF LIABILITY

	
 
	
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 EXCEPT AS TO THE PARTIES’ INDEMNIFICATION OBLIGATIONS HEREUNDER, TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, NEITHER PARTY WILL BE LIABLE TO THE OTHER FOR ANY SPECIAL, INCIDENTAL, PUNITIVE, INDIRECT OR CONSEQUENTIAL DAMAGES, LOSS OF BRAND VALUE, OR LOST PROFITS, HOWEVER CAUSED, UNDER ANY THEORY OF LIABILITY, ARISING FROM THE PERFORMANCE OF, OR RELATING TO, THIS AGREEMENT REGARDLESS OF WHETHER SUCH PARTY HAS BEEN NOTIFIED OF THE POSSIBILITY OF, OR THE FORESEEABILITY OF, SUCH DAMAGES. THE PARTIES AGREE THAT THE LIMITATIONS SPECIFIED IN THIS ARTICLE 11 SHALL SURVIVE AND APPLY EVEN IF ANY LIMITED REMEDY SPECIFIED IN THIS AGREEMENT IS FOUND TO HAVE FAILED OF ITS ESSENTIAL PURPOSE.

 

ARTICLE 12

Miscellaneous

	
 
	
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12.1  Further Assurances.  Each party shall, from time to time, upon request by the other, execute and deliver all such further documents or instruments as may be required in order to give effect to the purpose and intent of this Agreement.

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12.2  Assignment.  This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.  Neither party shall have the right to assign its rights or obligations hereunder without the prior written consent of the other.

 

12.3  Severability.  If any provision of this Agreement, or the application thereof to any person or circumstance, is invalid or unenforceable in any jurisdiction, (i) a substitute and equitable provision shall be substituted therefor in order to carry out, so far as may be valid and enforceable in such jurisdiction, the intent and purpose of the invalid and unenforceable provision and (ii) the remainder of this Agreement and the application of such provisions to other persons, circumstances and jurisdictions shall not be affected by such invalidity or unenforceability.

 

12.4  Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED ENTIRELY WITHIN SUCH STATE AND WITHOUT REGARD TO ITS CONFLICTS OF LAWS RULES. ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT SHALL BE BROUGHT IN THE COURTS OF THE STATE OF NEW YORK SITTING IN THE BOROUGH OF MANHATTAN, NEW YORK OR OF THE UNITED STATES DISTRICT COURTS OF SUCH STATE SITTING IN THE BOROUGH OF MANHATTAN, AND BY EXECUTION AND DELIVERY OF THIS AGREEMENT, THE PARTIES CONSENT, FOR THEMSELVES AND IN RESPECT OF THEIR RESPECTIVE PROPERTY, TO THE EXCLUSIVE JURISDICTION OF THOSE COURTS.  THE PARTIES HERETO IRREVOCABLY WAIVE ANY OBJECTION, INCLUDING ANY OBJECTION TO THE LAYING OF VENUE OR BASED ON THE GROUNDS OF FORUM NON CONVENIENS, WHICH IT MAY NOW OR HEREAFTER HAVE TO THE BRINGING OF ANY ACTION OR PROCEEDING IN SUCH JURISDICTION IN RESPECT OF THIS AGREEMENT OR OTHER DOCUMENT RELATED HERETO.  THE PARTIES HERETO WAIVE PERSONAL SERVICE OF ANY SUMMONS, COMPLAINT OR OTHER PROCESS, WHICH MAY BE MADE BY ANY OTHER MEANS PERMITTED BY THE LAW OF SUCH STATE.

 

12.5  Notices.  Any notice, request or other communication required or permitted by this Agreement to be given by either party to the other shall be in writing and delivered personally, mailed by registered or certified mail, return receipt requested, by recognized overnight courier or by facsimile transmission addressed as follows:

 

If to Buyer:

 

VINCE, LLC

500 Fifth Avenue, 20th Fl

New York, NY 10110

Attn: General Counsel

Email: legal@vince.com

 

 

If to Supplier:

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Rebecca Taylor, Inc.

307 W. 36th Street

New York, NY 10018

Attn: COO

 

or to such other address as any party shall have specified by notice to the other in accordance with this Article.  Notice will be deemed received the same day when delivered personally or when sent by facsimile transmission with evidence of delivery, five (5) days after mailing when sent by registered or certified mail, return receipt requested, and the next business day when delivered by overnight courier.  Purchase orders, forecasts and routine business correspondence not involving the specific terms of this Agreement shall not be subject to this Article and shall be effective only upon receipt.

 

12.6  Entire Agreement; Amendments; Waiver.  This Agreement expresses the entire understanding of the parties hereto and replaces any prior oral or written agreements concerning the subject matter hereof, and the parties acknowledge that it has not executed this Agreement in reliance upon any promise, agreement, representation or warranty not expressly set forth in this Agreement.  No amendment or supplementation hereof shall be effective or binding on either party hereto unless reduced to writing and executed by the duly authorized representatives of both parties hereto.  No provision set forth herein shall be deemed a waiver of any right under, or a modification of any provision of, any other agreement between the parties hereto.

 

12.7  Participation of the Parties.  The parties hereto acknowledge that this Agreement and all matters contemplated herein, have been negotiated among all parties hereto and their respective legal counsel and that all such parties have participated in the drafting and preparation of this Agreement from the commencement of negotiations at all times through the execution hereof, and that any ambiguity contained herein shall not be construed against a party as the drafting party.

 

12.8  Headings.  The headings of Articles and Articles herein are inserted for convenience of reference only and shall be ignored in the construction or interpretation hereof.

 

12.9  Survival. All provision of this Agreement, which by their terms apply beyond the Term, including provisions of Articles 4,5,6,7,8,10,11 and 12.3, 12.4, 12.5 and 12.9, among others, shall survive the expiration or termination of this Agreement.

 

12.10  No Partnership. This Agreement does not constitute and shall not be construed as a partnership or joint venture between Buyer and Supplier. Neither Party shall have any right to obligate or bind the other Party in any manner whatsoever, and nothing herein contained shall give, or is intended to give, any rights of any kind to any third persons.  Supplier shall not be deemed an agent or representative of Buyer for any purpose, except as specifically agreed in a separate writing duly executed by an officer of each party

 

12.11  Execution of Agreement.  This Agreement may be executed in one or more counterparts, each of which will be deemed to be an original copy of this Agreement and all of which, 

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when taken together, will be deemed to constitute one and the same agreement. The exchange of copies of this Agreement and of signature pages by facsimile transmission or by .pdf, .tif, .gif, .jpeg or similar attachment to electronic mail (any such delivery an ‘Electronic Deliver”) shall constitute effective execution and delivery of this Agreement as to the parties and may be used in lieu of the original Agreement for all purposes. Signatures of the parties transmitted by Electronic Delivery shall be deemed to be their original signatures for all purposes.

 

(Signature Page Follows)

 

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IN WITNESS WHEREOF, the Parties hereto have executed and delivered this Agreement as a sealed instrument as of the date first above written.

		
	
 
	
VINCE, LLC 

 

 

By:  /s/Brendan Hoffman 

Name: Brendan Hoffman

Title:  Chief Executive Officer

 

 

REBECCA TAYLOR, INC.

 

 

By: /s/Bruce Migliaccio

Name: Bruce Migliaccio

Title: Chief Operating Officer and Chief Financial Officer

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