Document:

Form of Notice of Grant of Stock Options and Option Exercise and Stock Purchase

 Exhibit 10.25 
  

			
	 Notice of Grant of Stock Options
 and Option
Agreement
	 	 Threshold Pharmaceuticals, Inc.
 ID:
94-3409596
 1300 Seaport Blvd., 5th Floor
 Redwood City, CA.
94063

		
	 Name
 Address
	 	 Option Number:
 Plan:    Amended and Restated 2004 Equity Incentive Plan
 ID:

 Effective
                    , you have been granted a(n)
                     Option to buy              shares of Threshold
Pharmaceuticals, Inc. (the Company) stock at $             per share. 
 The total option
price of the shares granted is $            . 
 Shares in each period will become fully
vested on the date shown. 
  

							
	 Shares
	 	 Vest Type
	 	 Full Vest
	 	 Expiration

	  
	 	On Vest Date	 	  
	 	  

	  
	 	Monthly	 	  
	 	  

 By your signature and the Company’s signature below, you and the Company agree that these options are granted
under and governed by the terms and conditions of the Company’s 2004 Amended and Restated Equity Incentive Plan and the Option Exercise and Stock Purchase Agreement, all of which are attached and made a part of this document. 
  

					
	  
 Threshold Pharmaceuticals, Inc.
	 		 	  
 Date

			
	  
 Name
	 		 	  
 Date

 Date:                                      
   
 Time:                                      
   

 THRESHOLD PHARMACEUTICALS, INC. 
 2004 EQUITY INCENTIVE PLAN 
 OPTION EXERCISE 
 AND 
 STOCK PURCHASE AGREEMENT 
 Instructions 
  

	1.	Read the entire Agreement carefully. This is a legally binding agreement between you and the Company. 

  

	2.	Items A – C: insert your name and identifying information. 

  

	3.	Items D-G: identify the stock option you want to exercise. 

  

	4.	Item H: identify how many shares you want to purchase. 

  

	5.	Item I: Calculate the Option Price by multiplying the share number in Item H by the purchase price per share in Item E. 

  

	6.	Item J: Confirm with the Company whether a tax withholding amount should be entered in this space. 

  

	7.	Item K: Add the Option Price in Item I to the tax withholding amount, if any, in Item J. Insert the resulting Purchase Price in Item K. 

  

	8.	Item L: Identify your approved method of payment for the Shares. 

  

	9.	Signatures: Sign the Agreement in the space provided on page 10. Important note: If you are married, your spouse also is required to sign.

  

	10.	Submit your fully completed and signed Agreement, together with payment of the Purchase Price, to David Southern. 

 THRESHOLD PHARMACEUTICALS, INC. 
 2004 EQUITY INCENTIVE PLAN 
 OPTION EXERCISE AND 
 STOCK PURCHASE AGREEMENT 
 Date:
                     
 OPTIONHOLDER / PURCHASER 
  

	(A)	Name:
                                        
                                        
                                        
                             

  

	(B)	Employee number:
                                        
                                        
                                        
         

  

	(C)	Residence address:
                                        
                                        
                                        
         

 ________________________________________________________________________________ 
 _______________________________________________________________________________ 
 STOCK OPTION 
  

	(D)	Option Shares (total) subject to this Option:
                                        
                                        
         

  

	(E)	Purchase Price per Share:
                                        
                                        
                                     

  

	(F)	Grant Date:
                                        
                                        
                                        
                    

  

	(G)	Option Control Number:
                                        
                                        
                                      

 OPTION SHARES PURCHASED UNDER THIS AGREEMENT

  

	(H)	Shares purchased:
                                        
                                        
                                        
        

  

	(I)	Option Price [ (E) x (H) ]:
                                        
                                        
                                    

  

	(J)	Tax withholding (if applicable):
                                        
                                        
                          

                                        
                                        
             (to be calculated by Company) 
  

	(K)	Purchase Price [ (I) + (J) ]:
                                        
                                        
                                   

 PAYMENT METHOD (select one or more) 
  

	(L)	Cash or check (enclosed):
                                        
                                        
                                    

 Wire transfer:
                                        
                                        
                                        
               
                                        
                             (Identify sending bank and wire transfer number) 
 “Cashless exercise”:
                                        
                                        
                                        
    
                                        
                 (Identify approved NASD broker-dealer and attach agreement) 
 Other:
                                        
                                        
                                        
                           
                                        
     (Attach Company approval for other form of payment) 
  

 2 

 DELIVERY INSTRUCTIONS (select one) 
  

	(A)	             Send certificate to Option Holder address above 

  

	(B)	             Send certificate (if restricted shares) or DWAC shares to my broker as noted below:

 Contact Person:
                                        
                                        
                                        
                             
 Contact Phone No.:
                                        
                                        
                                        
                       
  

	Broker	Name:
                                        
                                        
                                        
                               

 Broker address:
                                        
                                        
                                        
                           
                          ___________________________________________________________________________ 
                          ___________________________________________________________________________ 
 Broker’s DTC#:
                                        
                                        
                                        
                             
 Stkholder Acct No
                                        
                                        
                                        
                         
 1.
Exercise of Option. 
 1.1. I am exercising my right to purchase the number of shares of common stock of Threshold
Pharmaceuticals, Inc. as indicated on Line (H) by exercising the option identified on Lines (D) through (G). The per share purchase price of the option is indicated on Line (E) and the aggregate purchase price of the shares I am
purchasing is indicated on Line (I). I acknowledge that I may be responsible for tax withholding on the shares, in which case the aggregate purchase price would be as indicated on Line (K) (which the Company will complete). The shares that I am
purchasing by exercising my option are referred to in this Agreement as the “Shares.” The total purchase price of the Shares is referred to in this Agreement as the “Purchase Price.” I acknowledge that the option I am exercising
was issued under and is subject to the rules of Threshold Pharmaceuticals, Inc. 2004 Equity Incentive Plan. 
 1.2. With this signed
agreement, I have submitted either (a) cash or a check for the amount of the Purchase Price, (b) irrevocable wire transfer instructions for the Purchase Price or (c) another form of payment for the Purchase Price as is permitted under
this Agreement or by the written approval of the Company. 
 2. Company’s Rights of Repurchase. 
 2.1. Right of Repurchase for Reverse Vesting. If the Shares are not completely vested, I acknowledge that, if my employment with the Company
is Terminated (as defined in the Plan), the Company can elect to repurchase any or all of the unvested Shares during the 90 days following my Termination for the lesser of: (i) the Purchase Price of the Shares, minus any cash dividends paid or
payable with respect to the Shares for which the record date precedes the repurchase and (ii) the fair market value of the Shares as of the date of my Termination (determined in accordance with the Plan). 
  

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 2.2. Escrow. To enforce any restrictions on the Shares including the Company’s right
to repurchase the Shares, I acknowledge that I may be required to deposit the certificates representing the Shares, with stock powers or other transfer instruments endorsed in blank, with the Company or an agent of the Company to hold in escrow
until the Shares have vested and restrictions have lapsed or terminated. I further acknowledge that the certificates representing the Shares may contain legends referencing the restrictions on the Shares and any other legends deemed appropriate by
counsel to the Company. 
 2.3. Sales Prohibited. I acknowledge that I may not sell or transfer the shares while they are
subject to the Company’s right of repurchase. 
 3. Representations 
 3.1. Taxes. The Company has made no warranties or representations to me with respect to the income tax consequences of the transactions
contemplated by this Agreement and I am not relying on the Company or its representatives for an assessment of such tax consequences. I have had adequate opportunity to consult with my personal tax advisor prior to submitting this Agreement to the
Company. I also acknowledge I must meet such withholding obligations as the Company imposes as is required by applicable law. 
 3.2.
Repurchase. If the Shares are subject to a right of repurchase in favor of the Company at their original Purchase Price when I cease to provide services for the Company, or if I could be subject to suit under Section 16(b) of the
Securities Exchange Act of 1934 with respect to the purchase of the Shares, I will execute and deliver to the Company a copy of the Acknowledgment and Statement of Decision Regarding Election Pursuant to Section 83(b) of the Internal Revenue
Code (the “Acknowledgment”) attached as Exhibit A. I acknowledge that I am primarily responsible for filing any Section 83(b) elections although the Company will, as an accommodation to me and without assuming any liability, file a
duplicate election if I promptly provide an executed form with the Acknowledgement and Statement of Decision Regarding Section 83(b). I will consult with my own tax advisor to determine if there is a comparable election to file in the state of
where I reside and whether filing a federal or state Section 83(b) election is desirable under my circumstances. 
 3.3.
Disqualifying Dispositions of ISO Stock. I acknowledge that if the Stock acquired by exercise of an Incentive Stock Option (as defined in Section 2.1 of the Plan) is disposed of within two years after the Grant Date (as defined in
the Option Grant) or within one year after such exercise, immediately prior to the disposition I will promptly notify the Company in writing of the date and terms of the disposition and will provide such other information regarding the disposition
as the Company may reasonably require. 
  

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 4. Miscellaneous Provisions. 
 4.1. Successors and Assigns. Subject to the limitations set forth in this Agreement, the benefits and obligations of this Agreement will be
binding on the executors, administrators, heirs, legal representatives, successors, and assigns of the parties. 
 4.2. Costs.
I will repay the Company for all costs and damages, including incidental and consequential damages and attorney’s fees, resulting from any transfer of the Shares which is not in compliance with the provisions of this Agreement. 
 4.3. Governing Law. This Agreement shall be governed by, and construed in accordance with, the laws of the State of Delaware excluding
those laws that direct the application of the laws of another jurisdiction. 
 4.4. Notices. All notices and other
communications under this Agreement shall be in writing. Unless and until I am notified in writing to the contrary, all notices, communications, and documents directed to the Company and related to the Agreement, if not delivered by hand, shall be
mailed, addressed to: 
 Threshold Pharmaceuticals, Inc. 
 Attention: Chief Financial Officer 
 at the Company’s published principal office location. 
 4.5. Communications. Unless and until I notify the Company in writing to the contrary, all notices, communications, and documents intended
for me and related to this Agreement, if not delivered by hand, shall be mailed to my last known address as shown on the Company’s books. Notices and communications shall be mailed by first class mail, postage prepaid; documents shall be mailed
by registered mail, return receipt requested, postage prepaid. All mailings and deliveries related to this Agreement shall be deemed received when actually received, if by hand delivery, and three business days after mailing, if by mail. 

4.6. Arbitration. All disputes arising out of this Agreement will be finally settled by arbitration in accordance with the then existing
rules of the American Arbitration Association. The arbitration will be conducted in the county in Santa Clara County. Judgment upon the award rendered by the arbitrators may be entered in any court having jurisdiction over it; provided that nothing
in this Agreement shall prevent a party from applying to a court of competent jurisdiction to obtain temporary relief pending resolution of the dispute through arbitration. The parties agree that service of any notices in the course of such
arbitration at their respective addresses as provided for in this agreement shall be valid and sufficient. 
  

 5 

 4.7. This is not an employment contract. This Agreement is not to be interpreted as a
guarantee or contract of continuing employment. 
  

			
	THRESHOLD PHARMACEUTICALS, INC.
		
	By:	 	  

		
	Title:	 	  

 I hereby agree to be bound by all of the terms and conditions of this Agreement and the
Plan. 
  

	
	  
 Purchaser’s signature

	
	  
 Printed name

 The purchaser’s spouse indicates by the execution of this Agreement his or her consent
to be bound by the terms herein as to his or her interests, whether as community property or otherwise, if any, in the Shares hereby purchased. 
  

	
	  
 Purchaser’s Spouse

  

 6Employment Agreement

 Exhibit 10.1 
 EMPLOYMENT AGREEMENT 
 THIS EMPLOYMENT AGREEMENT (“Agreement”) is dated as of March 4, 2006, and
made and entered into by and between The Wet Seal, Inc., a Delaware corporation (the “Company”), and Greg Gemette (the “Executive”). 
 WHEREAS, the Company desires to employ Executive as President, Arden B. Merchandise, division of the Company, and Executive desires to be so employed; and 
 WHEREAS, the Company and Executive (collectively, the “Parties”) desire their employment relationship to be governed by the terms set forth
below. 
 THEREFORE, the Parties agree as follows: 
  

	 	1.	EMPLOYMENT 

 The Company hereby employs Executive
and Executive hereby accepts employment upon the terms and conditions set forth below. 
  

	 	2.	TERM 

 The term of this Agreement shall begin on
March 13, 2006 (the “Effective Date”) and end on March 13, 2009 (the “Term”). The period during which Executive is an employee of the Company is referred to herein as the “Employment Period.” 
  

	 	3.	COMPENSATION 

 3.1 Base
Compensation. For the services to be rendered by Executive under this Agreement, Executive shall be entitled to receive commencing as of the Effective Date, salary at the annual rate of Four Hundred Thousand Dollars ($400,000) (“Base
Compensation”) payable in twenty-six (26) substantially equal installments per year. The Base Compensation shall be reviewed annually for increase by the Company’s Board of Directors (“Board”). 
 3.2 Annual Bonus Compensation. Provided that Executive is employed as of the end of the Company’s fiscal year (January 31),
Executive shall be eligible to receive bonus compensation of 50% of base compensation. This will be based on achieving certain pre-determined operating income and gross margin targets (70% Arden B. division and 30% Wet Seal Corporate targets), 40%
payable in Spring and 60% payable in Fall. Executive shall not be eligible for a bonus under this provision if he is not employed as of the end of the fiscal year for which it is awarded. Any bonus under this provision shall be paid no later than
the end of March of the fiscal year following the fiscal year for which it is awarded. Executives Spring 2006 bonus payment shall be guaranteed at 100% payment of the Spring target and paid no later than August 31, 2006. 
 3.3 Options. Subject to the approval of the Compensation and Options Committee of the Board, pursuant to and subject to the terms
of the Company’s stock option plan(s), Executive shall be granted options to purchase 50,000 shares of common stock of the 

 
Company. The options shall vest equally over 3 years and the exercise price shall be set in accordance with the terms of the plan under which such options
are granted and shall be subject to a written option agreement in a form acceptable to the Company. Should there be a change in control of over 50% ownership at Wet Seal Inc. or Arden B division, all remaining stock options, whether vested or not
vested will vest immediately. For purposes of this Agreement “change of control” includes, but is not limited to, a merger or consolidation of the Company with or into another entity or any other corporate reorganization or the sale,
transfer or other disposition of all or substantially all ( 50% or more) of the Company’s assets. 
 Restricted
Shares. Subject to the approval of the Compensation and Options Committee of the Board, pursuant to and subject to the terms of the Company’s restricted grant plan(s), Executive shall be awarded restricted grants in the amount of 120,000
shares, vesting equally in three installments of 40,000 shares each, effective with the anniversary of Executives hire date. Should there be a change in control of over 50% ownership at Wet Seal Inc. or Arden B division, all remaining stock options,
whether vested or not vested will vest immediately. For purposes of this Agreement “change of control” includes, but is not limited to, a merger or consolidation of the Company with or into another entity or any other corporate
reorganization or the sale, transfer or other disposition of all or substantially all (50% or more) of the Company’s assets. 
 3.4 If there is a change in the control of the Arden B. division, all remaining grants in 3.3 and 3.4 vest immediately. 
 3.5 Benefits. Executive shall be entitled to participate in all pension and welfare benefit, medical, dental, vision, life insurance, disability and any other benefit or insurance plans established by the Company in accordance with
the terms of such plans as they may be in effect from time to time. 
 3.6 Vacation and Other Benefits. Executive shall
be entitled to three weeks vacation per year in accordance with the Company’s vacation policy, as it shall be in effect from time to time. 
 3.7 Relocation. Executive shall be entitled to relocation, including 90 days temporary housing, a lump sum payment of $30,000, and up to 2 house-hunting trips for Executive and family. Further details are
available under separate cover. 
 3.8 Expense Reimbursement and Legal Fees: Executive shall be reimbursed for
reasonable business expenses actually incurred, in accordance with the Company’s expense reimbursement policy as it may be in effect from time to time. The Company’s shall pay for Executive’s reasonable attorneys’ fees and costs
associated with the negotiation and preparation of this agreement in an amount not to exceed $2,000 (two-thousand dollars). 
  

	 	4.	POSITION AND DUTIES 

 4.1
Position. Executive shall serve as President, Arden B. Merchandise division of the Company, and report to the President and Chief Executive Officer of the Wet Seal Inc. 
  

 2 

 4.2 Devotion of Time and Effort. Executive shall use Executive’s good faith
best efforts and judgment (a) in performing Executive’s duties required hereunder and (b) to act in the best interests of the Company. Executive shall devote such time, attention and energies to the business of the Company as are reasonably
necessary to satisfy Executive’s required responsibilities and duties hereunder. Executive may engage in other activities for Executive’s own account while employed hereunder, including without limitation, charitable, community and other
business activities, provided that such other activities do not materially interfere with the performance of Executive’s duties hereunder or compete with the company. 
 4.3 Officer of the Company. Your position is considered a 16(b) position. You will be an Officer of this company and accountable
for fiscal and fiduciary responsibilities associated with such. 
  

	 	5.	TERMINATION 

 5.1 Due to Death or
Disability. If Executive dies during the Employment Period, Executive’s employment shall terminate as of the date of his death. The Company may terminate Executive if he becomes “disabled,” as defined below, upon written notice to
Executive, unless prohibited by law. For purposes of this Agreement, the term “Disability” shall mean a physical or mental incapacity as a result of which Executive becomes unable to continue the proper performance of Executive’s
duties hereunder for six (6) consecutive calendar months or for shorter periods aggregating one hundred eighty (180) business days in any twelve (12) month period, or, if this provision is inconsistent with any applicable law, for such period or
periods as permitted by law. 
 5.2 By the Company Without “Cause”. The Company may terminate
Executive’s employment without “cause” (as hereinafter defined) at any time following the Effective Date, upon thirty (30) days written notice to Executive, subject to compliance by the Company with the provisions of Section 5.5
hereof. 
 5.3 By the Company for Cause. The Company may terminate Executive’s employment for “Cause” at
any time. For purposes of this Agreement, “Cause” shall mean: 
 (a) Executive’s conviction of, or plea of nolo
contendere to, a felony or any crime or involving the Company; 
 (b) Executive’s commission of any act of theft,
embezzlement or misappropriation against the Company; 
 (c) The gross neglect, malfeasance or nonfeasance of Executive in the
performance of the services contemplated hereunder, when such conduct causes or has the likelihood of causing material economic harm to the Company; 
 (d) A material breach of this Agreement by Executive; 
 (e) Any willful misconduct or
unethical behavior related to Executive’s duties hereunder or insubordination by Executive; 
  

 3 

 (f) The sexual, or other harassment by Executive of any employee, independent contractor
or customer of the Company; and/or 
 (g) Executive’s use of illegal drugs or abuse of alcohol or legally prescribed
drugs. 
 5.4 By Executive For Good Reason. Executive may terminate his employment only for Good Reason as defined
below. In the event Executive seeks to terminate his employment for Good Reason, Executive shall provide thirty (30) days written notice to the Company describing the claimed event or circumstance and setting forth Executive’s intention to
terminate his employment with the Company. In all cases, the Company shall have the opportunity to cure any “Good Reason” identified by Executive within thirty (30) days of the Company’s receipt of the written notice from Executive.
For purposes of this Agreement, “Good Reason” shall mean: 
 (a) The Company’s material beach of any of its
obligations hereunder; 
 (b) Relocating Executive’s place of work, or the executive offices of the Company, to a
location other than in the County of Orange or the County of Los Angeles, State of California, without Executive’s written consent; or 
 (c) A material reduction, without cause, in Executive’s title, responsibilities or duties. 
 5.5 Termination Payment: 
 (a) Amount. In the event that Executive’s employment is terminated
pursuant to Sections 5.1 through 5.4, Executive shall continue to render services to the Company pursuant to this Agreement until his date of death or the date of termination (“Termination Date”) and shall continue to receive compensation
and payment for any unreimbursed expenses incurred and other accrued employee benefits as provided in this Agreement, through the Termination Date. In the event Executive’s employment is terminated without “Cause” or by Executive for
Good Reason, pursuant to Section 5.2, or 5.4 and subject to subpart (c) below, Executive shall receive severance pay in an amount equal to six (6) months Compensation, in equal bimonthly installments paid over a period of six (6) months (the
“Severance Period”) with the first payment occurring on the latter of the first regular pay date after the Termination Date or the tenth (10th) day after execution of the release described in subpart (c) below. Except as provided in this
Section 5.5, Executive shall not be entitled to any other payments in connection with his employment and/or the termination thereof, and shall have no further right to receive compensation or other consideration from the Company or have any other
remedy whatsoever against the Company, as a result of the termination of this Agreement or the termination of Executive. In no way does severance payment include any unearned, ineligible bonus compensation. Executive shall have no duty of mitigation
and shall not be subject to any right of offset with respect to any compensation received by Executive on or after the termination of his employment. 
  

 4 

 (b) Benefits. In the event Executive’s employment is terminated pursuant to
Section 5.2, the Executive may timely elect to continue healthcare coverage through COBRA. 
 (c) Release. To be
eligible to receive severance pay under this Section 5.5, Executive must execute and deliver (and not revoke, if a revocation period is required by law) a release of all claims against the Company and any of its parents, subsidiaries, affiliates,
shareholders, members, partners, investors, officers, directors, agents and employees in a form acceptable to the Company. 
  

	 	6.	NON-SOLICITATION, NON-COMPETITION 

 Executive acknowledges that by virtue of Executive’s position as President, Arden B. Merchandise division of the Company, and Executive’s employment hereunder, he will have advantageous familiarity with and knowledge about the
Company and will be instrumental in establishing and maintaining goodwill between the Company and its customers, which goodwill is the property of the Company. Therefore, Executive agrees as follows: 
 (a) During the Term of this Agreement, Executive will not engage (either directly or indirectly, as shareholder, partner, officer,
director, consultant, employee or otherwise) in any enterprise, nor perform any services of any kind whatsoever for or provide any financial assistance to any enterprise, in the retail clothing business other than through the Company or its
subsidiaries and their successors. 
 (b) During the Term of this Agreement, and for a period of one year following the end of
the Term, Executive will not, either for himself or for any other person or entity, directly or indirectly (i) solicit, induce, recruit or encourage any of the Company’s employees to terminate their relationship with the Company, and/or (ii)
attempt to solicit, induce, recruit or encourage any of the Company’s employees to terminate their relationship with the Company; provided, however, that this restriction shall apply for one year following the termination of Executive’s
employment, in the event Executive’s employment is terminated prior to the end of the Term pursuant to, and in accordance with, Sections 5.1 through 5.4; 
 (c ) During the Term of this Agreement, except where the Company gives Executive thirty (30) days written notice of its intention to
terminate Executive without cause and within the final one hundred twenty (120) days of the Term, Executive shall not seek, or negotiate for, employment other than with the Company; provided, however, that this restriction shall not apply following
the termination of Executive’s employment prior to the end of the Term pursuant to, and in accordance with, Sections 5.1 through 5.4; This provision is not intended to prohibit Executive from establishing and maintaining social and professional
relationships with captains of industry and human resource professionals including, but not limited to executive search firms. Such relationships are not intended to encourage, solicit or induce Wet Seal Inc., employees to terminate their
relationship with the Company. 
 (d) Executive acknowledges that any violation of any provision of this Section 6 by
Executive will cause irreparable damage to the Company, that such damages will be incapable of precise measurement and that, as a result, the Company will not have an adequate 

  

 5 

 
remedy at law to redress the harm which such violations will cause. Therefore, in the event of any violation of any provision of this Section 6 by Executive,
Executive agrees that the Company will be entitled to injunctive relief including, but not limited to, temporary and/or permanent restraining orders to restrain any violation of this Section 6 by Executive; and 
 (e) It is the desire and intent of the parties that the provisions of this Section 6 shall be enforced to the fullest extent permissible
under the laws and public policies applied in each jurisdiction in which enforcement is sought. Accordingly, if any portion of this Section 6 shall be adjudicated to be invalid or unenforceable, this Section 6 shall be deemed amended either to
conform to such restrictions as the court or arbitrator may allow, or to delete therefrom or reform the portion thus adjudicated to be invalid and unenforceable, such deletion or reformation to apply only with respect to the operation of this
Section 6 in the particular jurisdiction in which such adjudication is made. It is expressly agreed that the arbitrator in any arbitration hereunder shall have the authority to modify this Section 6 if necessary to render it enforceable, in such
manner as to preserve as much as possible the parties’ original intentions, as expressed herein, with respect to the scope hereof. 
  

	 	7.	TRADE SECRETS 

 7.1 Executive
specifically agrees that Executive will not at my time, whether during or subsequent to the Employment Period, in any fashion, form or manner, except in furtherance of Executive’s duties at the Company or with the specific written consent of
the Company, either directly or indirectly use or divulge, disclose or communicate to any Person in, any manner whatsoever, any confidential information of any kind, nature or description concerning any matters affecting or relating to the business
of the Company (the “Proprietary Information”), including (i) all information, formulae, compilations, software programs (including object codes and source codes), devices, methods, techniques, drawings, plans, experimental and research
work, inventions, patterns, processes and know-how, whether or not patentable, and whether or not at a commercial stage related to the Company or any subsidiary thereof (ii) buying habits or practices of any of its customers, (iii) the
Company’s marketing methods and related data, (iv) the Company’s costs of materials, (v) the prices it obtains or has obtained or at which it sells or has sold its products or services, (vi) lists or other written records used in the
Company’s business, (vii) compensation paid to employees and other terms of employment or (viii) any other confidential information of, about or concerning the business of the Company, its manner of operation, or other confidential data of any
kind, nature or description (excluding any information that is or becomes publicly known or available for use through no fault of Executive or as directed by Court order). The parties hereto stipulate that as between them, Proprietary Information
constitutes trade secrets that derive independent economic value, actual or potential, from not being generally known to the public or to other Persons who can obtain economic value from its disclosure or use and that Proprietary Information is the
subject of efforts which are reasonable under the circumstances to maintain its secrecy and of which this Section 7.1. is an example, and that any breach of this Section 7.1 shall be a material breach of this Agreement. All Proprietary Information
shall be and remain the Company’s sole property. 
 7.2 Executive agrees to keep confidential and not to use or divulge
except in furtherance of Executive’s duties at the Company any confidential or proprietary information of 

  

 6 

 
any customer of the Company to which Executive may obtain access during the Employment Period. Executive acknowledges and agrees that a breach of this
Section 7.2 shall be a material breach of this Agreement. 
  

	 	8.	INVENTIONS 

 8.1 Executive agrees to
disclose promptly to the Company any and all concepts, designs, inventions, discoveries and improvements related to the Company’s business (collectively, “Inventions”) that Executive may conceive, discover or make from the beginning
of Executive’s employment with Company until the termination thereof; whether such is made solely or jointly with others, whether or not patentable, of which the conception or making involves the use of the Company’s time, facilities,
equipment or personnel. 
 8.2 Executive agrees to assign, and does hereby assign, to the Company (or its nominee)
Executive’s right, title and interest in and to any and all Inventions that Executive may conceive, discover or make, either solely or jointly with others, patentable or unpatentable, from the beginning of Executive’s employment with the
Company until the termination thereof. 
 8.3 Executive agrees to sign at the request of the Company any instrument necessary
for the filing and prosecution of patent applications in the United States and elsewhere, including divisional, continuation, revival, renewal or reissue applications, covering any Inventions and all instruments necessary to vest title to such
Inventions in the Company (or its nominee). Executive further agrees to cooperate and assist the Company in preparing, filing and prosecuting any and all such patent applications and in pursuing or defending any litigation upon inventions covered
hereby. The Company shall bear all expenses involved in the prosecution of such patent applications it desires to have filed. Executive agrees to sign at the request of the Company any and all instruments necessary to vest title in the Company (or
its nominee) to any specific patent application prepared by the Company and covering Inventions which Executive has agreed to assign to the Company (or its nominee) pursuant to Section 8.2 above. 
 8.4 The provisions of Sections 8.2 and 8.3 do not apply to any invention which qualifies fully under the provisions of Section 2870 of the
California Labor Code, which provides in substance that provisions in an employment agreement providing that an employee shall assign or offer to assign rights in an invention to his or her employer do not apply to an invention for which no
equipment, supplies, facilities, or trade secret information of the employer was used and which was developed entirely on the employee’s own time, except for those inventions that either (a) relate, at the time of conception or reduction to
practice of the invention: (1) to the business of the employer or (2) to the employer’s actual or demonstrably anticipated research or development, or (b) result from any work performed by the employee for the employer. 
  

	 	9.	SHOP RIGHTS 

 The Company shall also
have a perpetual, royalty-free, non-exclusive right to use in its business, and to make, use, license and sell products, processes and/or services derived from any inventions, discoveries, designs, improvements, concepts, ideas, works of authorship,
whether patentable or not, including processes, methods, formulae, techniques or know-how 

  

 7 

 
related thereto, that are not within the scope of “Inventions” as defined above, but which are conceived or made by Executive during regular
working hours or with the use of the facilities, materials or personnel of the Company. 
  

	 	10.	COPYRIGHT 

 Executive agrees that
any work prepared for the Company that is eligible for copyright protection under any U.S. or foreign law shall be a work made for hire and ownership of all copyrights (including all renewals and extensions therein) shall vest in the Company. In the
event any such work is deemed not to be a work made for hire for any reason, Executive hereby irrevocably grants, transfers and assigns all right, title and interest in such work and all copyrights in such work and all renewals and extensions
thereof to the Company, and agrees to provide all assistance reasonably requested by the Company in the establishment, preservation and enforcement of its copyright in such work, such assistance to be provided at the Company’s expense but
without any additional compensation to Executive. Executive agrees to and does hereby irrevocably waive all moral rights with respect to the work developed or produced hereunder, including any and all rights of identification of authorship and any
and all rights of approval, restriction or limitation on use or subsequent modifications. 
  

	 	11.	EXECUTIVE’S DUTIES ON TERMINATION 

 Upon termination of his employment, Executive will return immediately to the Company all of the Company’s property in Executive’s possession or control, including, but not limited to, phone cards, credit cards, reports,
Proprietary Information, software, keys, files, data, customer lists, equipment, and all other tangible and intangible property belonging to the Company or relating to Executive’s employment with the Company. 
  

	 	12.	THE COMPANY’S REPRESENTATIONS 

 The Company hereby represents and warrants that (a) it has the right to enter into this Agreement and to incur the obligations incurred by it herein, (b) this Agreement has been duly and validly authorized by the Company, and (c) the
provisions of this Agreement do not violate any other contracts or agreements to which it is a party and that would adversely affect its ability to perform its obligation hereunder. 
  

	 	13.	EXECUTIVE’S REPRESENTATIONS 

 Executive hereby represents and warrants that (a) he has the right to enter into this Agreement and to grant the rights granted by him herein and (b) the provisions of this Agreement do not violate any other contracts or agreements to which
he is a party and that would adversely affect his ability to perform his obligation hereunder. 
  

	 	15.	GENERAL PROVISIONS 

 15.1
Assignment, Binding Effect. Neither the Company nor Executive may assign, delegate or otherwise transfer this Agreement or any of their respective rights or 

  

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obligations hereunder without the prior written consent of the other party, except that the Company may assign this Agreement to its successors (through
acquisition, merger, reorganization or otherwise), and affiliate, parent or subsidiary corporations. Any attempted prohibited assignment or delegation shall be void. This Agreement shall be binding upon and inure to the benefit of any permitted
successors or assigns of the parties and the heirs, executors, administrators and/or personal representatives of Executive. 
 15.2 Notices. All notices, requests, demands and other communications that are required or may be given under this Agreement shall be in writing and shall be deemed to have been duly given when received if personally delivered; when
transmitted if transmitted by telecopy, electronic or digital transmission method with electronic confirmation of receipt; the day after it is sent, if sent for next-day delivery to a domestic address by recognized overnight delivery service (e.g.,
FedEx); and upon receipt, if sent by certified or registered mail, return receipt requested. In each case notice shall be sent to: 
 If to the Company 
 Ms. Pamela O’Connor 
 SVP, Human Resources 
 The Wet Seal, Inc. 
 26972 Burbank 
 Foothill Ranch, CA 92610 
 Facsimile No.: (949) 699 4722 
 If to Executive: 
 Gregory S. Gemette 
 c/o Glen H. Ackerman, Esq. 
 P.O. Box 3176 
 Clearwater Beach, Florida 33767 
 With a copy to: 
 Glen H. Ackerman, Esq. 
 P.O. Box 3176 
 Clearwater, Florida 33767 
 Any party may change its address for the purpose of this Section 15.2 by giving the
other party written notice of its new address in the manner set forth above. 
 15.3 Entire Agreement. This Agreement
constitutes the entire agreement of the parties, and supersedes all prior agreements. 
 15.4 Amendments; Waivers. This
Agreement may be amended or modified, and any of the terms and covenants may be waived, only by a written instrument executed by the 

  

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parties hereto, or, in the case of a waiver, by the party waiving compliance. Any waiver by any party in any one or more instances of any term or covenant
contained in this Agreement shall neither be deemed to be nor construed as a further or continuing waiver of any such term or covenant of this Agreement. 
 15.5 Provisions Severable. In case any one or more provisions of this Agreement shall be invalid, illegal or unenforceable, in any respect, the validity, legality and enforceability of the remaining provisions
contained herein shall not, in any way, be affected or impaired thereby. If any provision hereof is determined by any court of competent jurisdiction or an arbitrator to be invalid or unenforceable by reason of such provision extending the covenants
and agreements contained herein for too great a period of time or over too great a geographical area, or being too extensive in any other respect, such provision shall be interpreted to extend only over the maximum period of time and geographical
area, and to the maximum extent in all other respects, as to which it is valid and enforceable, all as determined by such court or such arbitrator. 
 15.6 Governing Law. This Agreement shall be construed, performed and enforced in accordance with, and governed by the laws of the State of California without giving effect to the principles of conflict of laws
thereof. 
 15.7 Counterparts. This Agreement may be executed in one or more counterparts and delivered by facsimile,
each of which shall. be deemed an original, but all of which shall together constitute the same instrument. 
 15.8
Survival. Sections 2 and 5 through 16 shall survive the termination or expiration of this Agreement. 
  

	 	16.	SERVICES UNIQUE 

 The services to be
performed by Executive pursuant to this Agreement are of a special, unique, unusual, extraordinary and intellectual character which gives them a peculiar value, the loss of which cannot be reasonably or adequately compensated by damages in an action
at law. Company may seek, but shall not be limited to, equitable relief, by injunction or otherwise, in the event of a default by Executive. 
  

	 	17.	ARBITRATION 

 In recognition of the
fact that differences may arise between Executive and the Company relating to certain aspects of Executive’s employment or the termination of Executive’s employment, and in recognition of the fact that resolution of any differences in the
courts is rarely timely or cost effective for either party, both the Company and Executive mutually agree to arbitrate disputes under the following terms and conditions in order to establish and gain the benefits of a speedy, impartial and
cost-effective dispute resolution procedure. 
  

 10 

 (a) Except as set forth in subparagraph (e) below, any dispute arising out of or in any
way related to Executive’s employment with the Company, will be decided exclusively by final and binding arbitration, in Orange County, California, pursuant to the procedures required by California law, including the California Arbitration Act,
California Code of Civil Procedure §§ 1281, et seq. and governing case law including Armendariz v. Foundation Health Psychcare Servs., Inc., 24 Cal.4th 83 (2000). The Claims covered include, but are not limited to, claims for wages
or other compensation due; claims for breach of any contract or covenant, express or implied; tort claims; claims for discrimination, including but not limited to discrimination based on race, sex, sexual orientation, religion, national origin, age,
marital status, handicap, disability or medical condition or harassment on any of the foregoing bases; claims for benefits, except as excluded herein; and claims for violation of any federal, state or other governmental constitution, statute,
ordinance, regulation, or public policy. This agreement to arbitrate disputes shall not be deemed to apply to a dispute if an agreement to arbitrate such a dispute is prohibited by law. 
 (b) The arbitrator may award any form of remedy or relief (including injunctive relief) that would otherwise be available in court. Any
award pursuant to said arbitration shall be accompanied by a written opinion of the arbitrator setting forth the reason for the award. The award rendered by the arbitrator shall be conclusive and binding upon the parties hereto, and judgment upon
the award may be entered, and enforcement may be sought in, any court of competent jurisdiction. To the extent not inconsistent with applicable laws, the Arbitrator will have the authority to hear and grant motions. 
 (c) Except as required under governing law, including Armendariz v. Foundation Health Psychcare Servs., Inc., 24 Cal.4th 83 (2000),
each party shall pay its own expenses of arbitration and the expenses of the arbitrator (including compensation) shall be borne equally by the parties. 
 (d) EXECUTIVE AND THE COMPANY UNDERSTAND THAT, ABSENT THIS AGREEMENT, EXECUTIVE AND THE COMPANY WOULD HAVE THE RIGHT TO SUE EACH OTHER IN COURT, AND THE RIGHT TO A JURY TRIAL, BUT, BY THIS AGREEMENT, GIVE UP THAT
RIGHT AND AGREE TO RESOLVE BY ARBITRATION ANY AND ALL GRIEVANCES DIRECTLY OR INDIRECTLY RELATED TO THIS AGREEMENT, EXECUTIVE’S EMPLOYMENT OR THE TERMINATION THEREOF. 
 (e) Notwithstanding the above, Executive or the Company shall be entitled to seek injunctive or other equitable, provisional relief from a
court of competent jurisdiction in Orange County, California upon a showing that any potential arbitration award would be rendered ineffectual without such relief. However, if any party seeks or obtains such injunctive relief, the merits of the
dispute and/or determination of any appropriate remedy (other than equitable, provisional relief) shall be resolved in accordance with this Agreement. 
 (f) In the event that any of the foregoing arbitration provisions is held to be unenforceable, such provision shall be deemed stricken and the remainder shall be fully enforceable. 
 (g) This agreement to arbitrate disputes shall apply to disputes involving the Company as well as the Company’s parents, affiliates,
subsidiaries, successors, assigns, officers, directors, shareholders, employees and agents. Any controversy regarding whether a particular dispute is subject to arbitration shall be decided by the arbitrator. 
  

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

			
	 THE “COMPANY”

		
	 By:
	 	 /s/    JOEL WALLER

	 Title:
	 	 President and Chief Executive Officer

  

			
	 “EXECUTIVE”

	
	/s/    GREG GEMETTE
	 Greg Gemette

  

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