Document:

tfoc8k12302008ex10-9.htm

    AMENDED AND RESTATED
EMPLOYMENT AGREEMENT

     

    Effective
as of December 29, 2008

     

    This
Agreement is entered into and made effective as of December 29, 2008 (the
“Effective Date”) between Tanger Properties Limited
Partnership (the “Company”) and JOSEPH NEHMEN (the
“Executive”).  The Company and the Executive are sometimes referred to
individually as a “Party” and collectively as the “Parties”.

     

    RECITALS

     

    A.           The
Company and the Executive have agreed upon the terms and conditions of the
Executive’s employment by the Company.  Company and Executive entered
into an Employment Agreement dated January 1, 1995 which was amended and
restated as of January 1, 1999, July 1, 2003, and January 1, 2008 (the “Prior
Agreement”).

     

    B.           The
Parties intend to set forth herein the entire agreement between them with
respect to Executive’s employment by the Company.  The Parties intend
to modify, amend and restate their Prior Agreement upon the terms and conditions
set forth herein.

     

    Now
therefore in consideration of the foregoing recitals and the promises contained
herein the Parties agree as follows:

     

    1. EMPLOYMENT AND
DUTIES.

     

    1.1  Employment.  During
the Contract Term (as defined herein), the Company will employ the Executive and
the Executive shall serve the Company as a full-time employee upon and subject
to the terms and conditions of this Agreement.  The Executive’s
employment hereunder may be terminated before the end of the Contract Term only
as provided in Section 5 of this Agreement.

     

    1.2 Position and
Responsibilities.  Executive
has been elected and is currently serving as Senior Vice President of
Operations.  During the Executive’s employment hereunder, his primary
duties, functions, responsibilities and authority will include overseeing the
operations of the Company’s retail facilities.  Further, Executive
shall perform such other duties as are assigned to him by the Chief Executive
Officer, Chief Operating Officer and/or the Board of Directors.

     

    1.3 Time and
Effort.  During
the Contract Term, Executive shall be employed on a full-time basis and shall
devote his best efforts and substantially all of his attention, business time
and effort (excluding sick leave, vacation provided for herein and reasonable
time devoted to civic and charitable activities) to the business and affairs of
the Company.

     

    Notwithstanding
the foregoing provisions of this Section, Executive may perform consulting or
employment services which do not materially interfere with the performance of
his duties as a full time employee of the Company as follows:

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (a) For a
purchaser of any of the assets or capital stock of Merchants Wholesalers of
Missouri, Inc.  (the company in which he was formerly a part owner and
with whom he was employed) in connection with the purchaser’s conduct of a
business for the wholesale and retail sale of cigarettes, candy, tobacco and
similar items and so long as the purchaser is not engaged in activities which
are in competition with the business currently conducted by the Company;
and

     

    (b) For
Dolgin & Associates (a firm in which Executive owns an interest) in
connection with that firm’s conduct of the business of providing tax
consultation and advice and so long as that firm is not engaged in activities
which are in competition with the business currently conducted by the
Company.

     

    2. PERIOD OF
EMPLOYMENT.

     

    2.1 Initial Contract
term.  The
period of employment pursuant to the Prior Agreement began on January 1, 2008
(the “Commencement Date”) and shall extend through December 31, 2010 (the
“Initial Contract Term”), unless earlier terminated as provided in Section 5 or
extended as provided in this Section 2.  The calendar year beginning
January 1, 2008 and each calendar year thereafter during the Contract Term is
sometimes herein referred to as a “Contract Year”.

     

    2.2 Extended Contract
Term.  On
January 1, 2009, the Contract Term shall be automatically extended by one year,
and, on the first day of January of each calendar year thereafter (an “Extension
Date”), the Contract Term shall be automatically extended by one year unless (i)
Executive’s employment has been earlier terminated as provided in Section 5 or
(ii) the Company gives written notice to Executive one hundred eighty (180) days
prior to the Extension Date that the Contract Term shall not be automatically
extended.  For purposes of illustration, if Executive’s employment has
not been terminated as provided in Section 5 and if the Company has not given
written notice to Executive at least 180 days prior to January 1, 2010 that the
Contract Term will not be extended, on January 1, 2010, the Contract Term will
be extended to and including December 31, 2012.

     

    If the
Contract Term is extended as provided herein, Executive’s employment may be
terminated (other than upon expiration) only as provided in Section
5.  References herein to the “Contract Term” shall refer to the
Initial Contract Term as extended pursuant to this Section 2.

     

    3. COMPENSATION.

     

    3.1 Base
Salary.  As
compensation for Executive’s services performed pursuant to this Agreement,
Employer will pay Executive an “Annual Base Salary” of $295,470 for the Contract
Year beginning January 1, 2008 and, with respect to each Contract Year
thereafter an amount agreed upon by Executive and the Company but not less than
$295,470.  The Annual Base Salary shall be paid in equal installments
in arrears in accordance with Employer’s regular pay schedule.

     

    3.2 Bonus or Incentive
Compensation.  As
additional compensation for services rendered, the Executive shall receive such
bonus or bonuses as the Company’s Board of Directors may from time to time
approve including without limitation awards under the Company’s Incentive Award
Plan.  Such bonuses may be payable in cash (a “Cash Bonus”) and/or in
the form of equity based compensation as allowed under the Company’s Incentive
Award Plan, provided, however, that any Cash Bonus shall be payable on or prior
to the fifteenth (15th) day of
the third (3rd)
calendar month following the end of the calendar year with respect to which such
Cash Bonus relates.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    4. EMPLOYEE
BENEFITS.

     

    4.1 Executive Benefit
Plans.  Executive
shall participate in the employee benefit plans (including group medical and
dental plans, a group term life insurance plan, a disability plan and a 401(k)
Savings plan) generally applicable to employees of the Company, as those plans
may be in effect from time to time.

     

    4.2 Expenses.  Subject
to Section 10.2(e), the Company shall promptly reimburse the Executive for all
reasonable travel and other business expenses incurred by the Executive in the
performance of his duties to the Company hereunder.  Executive shall
observe and comply with the Company’s policies with respect to such
reimbursements as in effect from time to time.  At least monthly,
Executive will submit such records and paid bills supporting the amount of the
expenses incurred and to be reimbursed as the Company shall reasonably request
or as shall be required by applicable laws.

     

    4.3 Vacation.  Executive
shall have the number of days of paid vacation during each calendar year that
are provided to employees of the Company with the same number of years of
service as Executive has pursuant to the Company’s vacation policy described in
the Company’s employee handbook in effect on the first day of that calendar
year.

     

    5. TERMINATION OF
EMPLOYMENT.

     

    5.1 Termination
Circumstances.  Executive’s
employment hereunder may be terminated prior to the end of the Contract Term by
the Company or the Executive, as applicable, without any breach of this
Agreement only under the following circumstances:

     

    (a) Death.  Executive’s
employment hereunder shall terminate upon his death.

     

    (b) Disability.  The
Company may terminate Executive’s employment upon his Disability.

     

    (c) Cause.  The
Company may terminate the Executive’s employment hereunder for
Cause.

     

    (d) Good
Reason.  Executive may terminate his employment for Good
Reason.

     

    (e) Without
Cause.  The Company may terminate Executive’s employment
hereunder other than for Cause for any or no reason upon 30 days
notice.

     

    (f) Resignation without Good
Reason.  The Executive may resign his employment without Good
Reason upon 90 days written notice to the Company.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Except as
may otherwise be expressly provided in Section 7.1(a) or in any written
agreement between the Company and Executive with respect to the issuance of
awards under the Company’s Incentive Award Plan, upon termination of Executive’s
employment, Executive shall be entitled to receive only the compensation accrued
but unpaid for the period of employment prior to the date of such termination of
employment and shall not be entitled to additional compensation.  Such
accrued compensation shall be paid in accordance with the Company’s ordinary
payment practices and, in any event, on or prior to the fifteenth (15th) day of
the third (3rd)
calendar month following the end of the calendar year in which the date of
termination occurs.

     

    5.2 Notice of
Termination.  Any
termination of the Executive’s employment hereunder by the Company or by the
Executive (other than by reason of the Executive’s death) shall be communicated
by a notice of termination to the other party hereto.  For purposes of
this Agreement, a “notice of termination” shall mean a written notice which (i)
indicates the specific termination provision in the Agreement relied upon, (ii)
sets forth in reasonable detail any facts and circumstances claimed to provide a
basis for termination of the Executive’s employment under the provision
indicated and (iii) specifies the effective date of the
termination.

     

    6. AGREEMENT NOT TO
COMPETE.

     

    6.1 Covenant Against
Competition.  Executive
agrees that during the term of Executive’s employment hereunder and (i) if
Executive’s employment is terminated by the Company for Cause or by Executive
without Good Reason, for one hundred eighty (180) days after the date of such
termination or (ii) if Executive receives the Severance Payment described in
Section 7.1(a) if this Agreement because of a termination of his employment by
the Company without Cause or by Executive for Good Reason, from the date of such
termination through the first anniversary of such termination date, Executive
shall not, directly or indirectly, as an employee, employer, shareholder,
proprietor, partner, principal, agent, consultant, advisor, director, officer,
or in any other capacity,

     

    (1) engage in
activities involving the development or operation of a manufacturers outlet
shopping center which is located within a radius of fifty (50) miles of a retail
shopping facility which, within the 365 day period ending on the date of the
termination of Executive’s employment hereunder, was owned (with an effective
ownership interest of 50% or more), directly or indirectly, by the Company or
was operated by the Company;

     

    (2) engage in
activities involving the development or operation of a manufacturers outlet
shopping center which is located within a radius of fifty (50) miles of any site
which, within the 365 day period ending on the date of the termination of
Executive’s employment hereunder, the Company or its affiliate negotiated to
acquire and/or lease for the development or operation of a retail shopping
facility;

     

    (3) engage in
activities involving the development or operation of any other type of retail
shopping facility which is located within a radius of five (5) miles of, and
competes directly for tenants with, a retail shopping facility which, within the
365 day period ending on the date of the termination of Executive’s employment
hereunder, was (i) under development by the Company or its affiliate; (ii) owned
(with an effective ownership interest of 50% or more), directly or indirectly,
by the Company; or (iii) operated by the Company.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    6.2 Disclosure of
Information.  Executive
acknowledges that in and as a result of his employment hereunder, he may be
making use of, acquiring and/or adding to confidential information of a special
and unique nature and value relating to such matters as financial information,
terms of leases, terms of financing, financial condition of tenants and
potential tenants, sales and rental income of shopping centers and other
specifics about Company’s development, financing, construction and operation of
retail shopping facilities.  Executive covenants and agrees that he
shall not, at any time during or following the term of his employment, directly
or indirectly, divulge or disclose for any purpose whatsoever any such
confidential information that has been obtained by, or disclosed to, him as a
result of his employment by Company.

     

    6.3 Reasonableness of
Restrictions.

     

    (a) Executive
has carefully read and considered the foregoing provision of this Section, and,
having done so, agrees that the restrictions set forth in this Section,
including but not limited to the time period of restriction set forth in the
covenant against competition are fair and reasonable and are reasonably required
for the protection of the interests of Company and its officers, directors and
other employees.

     

    (b) In the
event that, notwithstanding the foregoing, any of the provisions of this Section
shall be held invalid or unenforceable by a court of competent jurisdiction, the
remaining provisions thereof shall nevertheless continue to be valid and
enforceable as though the invalid or unenforceable parts had not been included
herein.  In the event that any provision of this Section relating to
the time period and/or the areas of restriction shall be declared by a court of
competent jurisdiction to exceed the maximum time period or areas such court
deems reasonable and enforceable, the time period and/or areas of restriction
deemed reasonable and enforceable by the court shall become and thereafter be
the maximum time period and/or areas.

     

    6.4 Consideration.  Executive
promises in this Section not to compete with the Company and not to disclose
information obtained during his employment by the Company are made in
consideration of the Company’s agreement to pay the compensation provided for
herein for the period of employment provided herein.  Such promises by
Executive constitute the material inducement to Company to employ Executive for
the term and to pay the compensation provided for in this Agreement and to make
and to continue to make confidential information developed by Company available
to Executive.

     

    6.5 Company’s
Remedies.  Executive
covenants and agrees that if he shall violate any of his covenants or agreements
contained in this Section, the Company shall, in addition to any other rights
and remedies available to it at law or in equity, have the following rights and
remedies against Executive:

     

    (a) The
Company shall be relieved of any further obligation to Executive under the terms
of this agreement;

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (b) The
Company shall be entitled to an accounting and repayment of all profits,
compensation, commissions, remunerations or other benefits that Executive,
directly or indirectly, has realized and/or may realize as a result of, growing
out of or in connection with, any such violation; and

     

    (c) Company
shall be entitled to a permanent injunction to prevent or restrain the breach or
violation of the agreements contained herein by Executive or by Executive’s
partners, agents, representatives, servants, employees and/or any and all
persons directly acting for or with Executive.

     

    The
foregoing rights and remedies of the Company shall be cumulative and the
election by the Company to exercise any one or more of them shall not preclude
the Company’s exercise of any other rights described above or otherwise
available under applicable principles of law or equity.

     

    7. SEVERANCE
BENEFITS.

     

    7.1 Description of
Benefits.

     

    (a) Termination without Cause or
for Good Reason:  If Executive’s employment shall be terminated
(i) by the Company other than for Cause or (ii) by the Executive for Good
Reason, subject to the limitation in Section 7.2 hereof, the Company shall pay
Executive an amount equal to three hundred percent (300%) of his Annual Base
Salary.  Subject to Section 10.2, such amount shall be paid in equal
consecutive installments in accordance with the Company’s regular pay schedule
over a twelve (12) month period beginning on the effective date of the
termination of Executive’s employment.

     

    (b) Termination by Death or
Disability.  Subject to Section 10.2, upon the termination of
the Executive’s employment by reason of his death or Disability, the Company
shall pay to the Executive or to the personal representatives of his estate (i)
within thirty (30) days after the termination, a lump-sum amount equal to one
hundred percent (100%) of the Executive’s Annual Base Salary for the Contract
Year in which the termination occurs and (ii) on or before the day on which the
Executive’s Cash Bonus for the Contract Year in which the termination occurs
would have been payable if the termination had not occurred, an amount equal to
the Cash Bonus the Executive would have received for that Contract Year if the
termination had not occurred multiplied by a fraction the numerator of which is
the number of days in that Contract Year before the date of termination and the
denominator of which is 365.  This subsection 9(b) shall not limit the
entitlement of the Executive, his estate or beneficiaries to any disability or
other benefits then available to the Executive under any life, disability
insurance or other benefit plan or policy which is maintained by the Company for
the Executive’s benefit.

     

    (c) Termination for Cause or
Without Good Reason.  If the Executive’s employment is
terminated by the Company for Cause or by the Executive without Good Reason, the
Executive shall be entitled to all Annual Base Salary and all Benefits accrued
through the date of termination, payable in accordance with the Company’s
ordinary payment practices and, in any event, on or prior to the fifteenth
(15th) day of
the third (3rd)
calendar month following the end of the calendar year in which the date of
termination occurs.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (d) Survival.  Neither
the termination of the Executive’s employment hereunder nor the expiration of
the Contract Term shall impair the rights or obligations of any party hereto
which shall have accrued hereunder prior to such termination or
expiration.

     

    (e) Mitigation of
Damages.  In the event of any termination of the Executive’s
employment by the Company, the Executive shall not be required to seek other
employment to mitigate damages, and any income earned by the Executive from
other employment or self- employment shall not be offset against any obligations
of the Company to the Executive under this Agreement.

     

    7.2 Limitation on Severance
Benefits.

     

    (a) Notwithstanding
any other provision of this Agreement, and except as provided in paragraph
7.2(b) below, payments and benefits to which Executive would otherwise be
entitled under the provisions of this Agreement will be reduced (or the
Executive shall make reimbursement of amounts previously paid) to the extent
necessary to prevent the Executive from having any liability for the federal
excise tax levied on certain “excess parachute payments” under section 4999 of
the Internal Revenue Code as it exists as of the date of this
Agreement.

     

    (b) The
Company may determine the amount (if any) of reduction for each payment or
benefit that the Executive would otherwise be entitled to
receive.  The extent to which the payments or benefits to the
Executive are to be reduced pursuant to paragraph 7.2(a) will be determined by
the accounting firm servicing the Company on the date that the Executive’s
employment is terminated.  The Company shall pay the cost of such
determination.

     

    (c) If the
final determination of any reduction in any benefit or payment pursuant to this
Section has not been made at the time that the Executive is entitled to receive
such benefit or payment, the Company shall pay or provide an estimated amount
based on a recommendation by the accounting firm making the determination under
subparagraph 10(b).  When the final determination is made, the Company
shall pay the Executive any additional amounts that may be due or the Executive
shall reimburse the Company for any estimated amounts paid to the Executive that
were in excess of the amount payable hereunder.

     

    8. DEFINITIONS.

     

    “Annual Base Salary”
is defined in Section 3.

     

    “Cash Bonus” is
defined in Section 3.

     

    “Cause” For purposes
of this Agreement, the Company shall have “Cause” to terminate Executive’s
employment hereunder upon (i) a finding by the Board of Trustees of the
Company’s general partner, Tanger GP Trust that Executive has materially harmed
the Company through a material act of dishonesty in the performance of his
duties hereunder, (ii) his conviction of a felony involving moral turpitude,
fraud or embezzlement, or (iii) a finding by Tanger GP Trust’s Board of Trustees
that Executive has willfully failed to perform his material duties under this
Agreement (other than a failure due to disability) after written notice
specifying the failure and a reasonable opportunity to cure (it being understood
that if his failure to perform is not of a type requiring a single action to
cure fully, that he may commence the cure promptly after such written notice and
thereafter diligently prosecute such cure to completion).

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    “Change of Control”
shall mean (A) the sale, lease, exchange or other transfer (other than pursuant
to internal reorganization) by the Company or Tanger Factory Outlet Centers,
Inc.  (“TFOC”) of more than 50% of its assets to a single purchaser or
to a group of associated purchasers; (B) a merger, consolidation or similar
transaction in which TFOC or the Company does not survive as an independent,
publicly owned corporation or TFOC or an entity wholly owned by TFOC ceases to
be the sole general partner of the Company; or (C) the acquisition of securities
of TFOC or the Company in one or a related series of transactions (other than
pursuant to an internal reorganization) by a single purchaser or a group of
associated purchasers (other than Executive or any of his lineal descendants,
lineal ancestors or siblings) which results in their ownership of twenty-five
(25%) percent or more of the number of Common Shares of TFOC (treating any
Partnership Units or Preferred Shares acquired by such purchaser or purchasers
as if they had been converted to Common Shares) that would be outstanding if all
of the Partnership Units and Preferred Shares were converted into Common Shares;
(D) a merger involving TFOC if, immediately following the merger, the holders of
TFOC’s shares immediately prior to the merger own less than fifty (50%) of the
surviving company’s outstanding shares having unlimited voting rights or less
than fifty percent (50%) of the value of all of the surviving company’s
outstanding shares; or (E) a majority of the members of the Company’s Board of
Directors are replaced during any twelve month period by directors whose
appointment or election is not endorsed by a majority of the members of the
Board prior to the date of the appointment or election.

     

    “Contract Term” is
defined in Section 2.

     

    “Contract Year” is
defined in Section 2.

     

    “Disability” shall
mean the absence of Executive from Executive’s duties to the Company on a
full-time basis for a total of 16 consecutive weeks during any 12 month period
as a result of incapacity due to mental or physical illness which is determined
to be total and permanent by a physician selected by the Company and acceptable
to Executive or Executive’s legal representative (such agreement as to
acceptability not to be withheld unreasonably).

     

    “Good Reason” The
Executive shall have “Good Reason” to terminate his employment hereunder if (i)
the Company fails to make payment of amounts due to Executive hereunder within
thirty (30) days after Executive has made written demand therefor upon Company;
(ii) Company commits a material breach of its obligations under this Agreement
and fails to cure such breach after a thirty (30) day written notice thereof;
(iii) if, after a Change of Control, the principal duties of Executive are
required to be performed at a location other than the Greensboro, North Carolina
metropolitan area without his consent; (iv) if Executive elects to terminate his
employment by written notice to the Company within the 180 day period following
a Change of Control; (v) there is a material adverse change in Executive’s job
titles, duties, responsibilities, perquisites granted hereunder or authority
without his consent; and (vi) the Company’s headquarters are relocated outside
of the Greensboro, North Carolina Metropolitan area without Executive’s
consent.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    “Section 409A” shall
mean, collectively, Section 409A of the Internal Revenue Code of 1986, as
amended, and the Department of Treasury Regulations and other interpretive
guidance promulgated thereunder, including without limitation any such
regulations or guidance that may be issued after the date of this amendment and
restatement.

     

    9. MISCELLANEOUS.

     

    9.1 Binding on
Successors.  This
Agreement shall be binding upon and inure to the benefit of the Partnership, the
Company, the Executive and their respective successors, assigns, personal and
legal representatives, executors, administrators, heirs, distributees, devisees,
and legatees, as applicable.

     

    9.2 Governing
Law.  This
Agreement is being made and executed in and is intended to be performed in the
State of North Carolina, and shall be governed, construed, interpreted and
enforced in accordance with the substantive laws of the State of North Carolina
without any reference to principles of conflicts or choice of law under which
the law of any other jurisdiction would apply.

     

    9.3 Validity.  The
invalidity or unenforceability of any provision or provisions of this Agreement
shall not affect the validity or enforceability of any other provision of this
Agreement, which shall remain in full force and effect.

     

    9.4 Notices.  All
notices, demands, requests or other communications (collectively, “Notices”)
required to be given or which may be given hereunder shall be in writing and
shall be sent by (a) certified or registered mail, return receipt requested,
postage prepaid, or (b) national overnight delivery service, or (c) facsimile
transmission (provided that the original shall be simultaneously delivered by
national overnight delivery service or personal delivery), or (d) personal
delivery, addressed as follows:

     

    
      	
              If
      to Company, to:

            	
              Tanger
      Properties Limited Partnership

            

    

     

    
      	
               
      

            	
              3200
      Northline Avenue

            

    

     

    
      	
               
      

            	
              Suite
      360

            

    

     

    
      	
               
      

            	
              Greensboro,
      NC  27408

            

    

     

    
      	
              Attention:

            	 

    

     

    
      	
               
      

            	
              With
      a copy to:

            	 	 

    

     

    
      	
               
      

            	 

    

     

    
      	
               
      

            	 

    

     

    
      	
              If
      to Executive, to:

            	
              JOSEPH
      NEHMEN

            

    

     

    
      	
               
      

            	
              402
      Waycross Drive

            

    

     

    
      	
               
      

            	
              Greensboro,
      NC  27410

            

    

     

    
      	
               
      

            	
              With
      a copy to:

            	 	 

    

     

    
      	
               
      

            	 

    

     

    
      	
               
      

            	 

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Any
Notice so sent by certified or registered mail, national overnight delivery
service or personal delivery shall be deemed given on the date of receipt or
refusal by the intended recipient as indicated on the return receipt, or the
receipt of the national overnight delivery service or personal delivery
service.  Any Notice sent by facsimile transmission shall be deemed
given when received by the intended recipient as confirmed by the telecopier
electronic confirmation receipt.  A Notice may be given either by a
party or by such party’s attorney.  A Party may (i) change the address
to which any Notice to that Party hereunder is to be delivered or (ii) designate
additional or substituted parties to whom Notices hereunder to such Party should
be sent with any such change or designation to be effective five (5) Business
Days after delivery of notice thereof to the other Party in the manner herein
provided.  As used herein the term “Business Day” shall mean every
day, other than Saturdays, Sundays and any other day on which banks in the State
in which the Center is located are not generally open for the conduct of banking
business during normal business hours.

     

    9.5 Entire
Agreement.  The
terms of this Agreement are intended by the parties to be the final expression
of their agreement with respect to the employment of the Executive by the
Partnership and the Company and may not be contradicted by evidence of any prior
or contemporaneous agreement.  The parties further intend that this
Agreement shall constitute the complete and exclusive statement of its terms and
that no extrinsic evidence whatsoever may be introduced in any judicial,
administrative, or other legal proceeding to vary the terms of this
Agreement.

     

    10. SECTION
409A.

     

    10.1 The
parties acknowledge and agree that, to the extent applicable, this Agreement
shall be interpreted in accordance with, and the parties agree to use their best
efforts to achieve timely compliance with Section 409A of the Internal Revenue
Code of 1986, as amended and the Department of Treasury Regulations and other
interpretive guidance promulgated thereunder (collectively, “Section 409A”),
including without limitation any such regulations or other guidance that may be
issued after the Effective Date.  Notwithstanding any provision of
this Agreement to the contrary, in the event that the Company determines that
any compensation or benefits payable or provided under this Agreement may be
subject to Section 409A, the Company may adopt (without any obligation to do so
or to indemnify the Executive for failure to do so) such limited amendments to
this Agreement and appropriate policies and procedures, including amendments and
policies with retroactive effect, that the Company reasonably determines are
necessary or appropriate to (i) exempt the compensation and benefits payable
under this Agreement from Section 409A and/or preserve the intended tax
treatment of the compensation and benefits provided with respect to this
Agreement or (ii) comply with the requirements of Section 409A.  No
provision of this Agreement shall be interpreted or construed to transfer any
liability for failure to comply with the requirements of Section 409A from the
Executive or any other individual to the Company or any of its affiliates,
employees or agents.

     

    10.2 Separation from Service
under 409A.  Notwithstanding any provision to the contrary in
this Agreement:

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (a) No amount
shall be payable pursuant to Sections 7.1(a) or (b) unless the termination of
the Executive’s employment constitutes a “separation from service” within the
meaning of Section 1.409A-1(h) of the Department of Treasury Regulations;
and

     

    (b) If the
Executive is deemed at the time of his separation from service to be a
“specified employee” for purposes of Section 409A(a)(2)(B)(i) of the Code, to
the extent delayed commencement of any portion of the termination benefits to
which the Executive is entitled under this Agreement (after taking into account
all exclusions applicable to such termination benefits under Section 409A),
including, without limitation, any portion of the additional compensation
awarded pursuant to Sections 7.1(a) or (b), is required in order to avoid a
prohibited distribution under Section 409A(a)(2)(B)(i) of the Code, such portion
of the Executive’s termination benefits shall not be provided to the Executive
prior to the earlier of (A) the expiration of the six-month period measured from
the date of the Executive’s “separation from service” with the Company (as such
term is defined in the Department of Treasury Regulations issued under Section
409A of the Code) or (B) the date of the Executive’s death.  Upon the
earlier of such dates, all payments deferred pursuant to this Section 10.2(b)
shall be paid in a lump sum to the Executive, and any remaining payments due
under the Agreement shall be paid as otherwise provided herein; and

     

    (c) The
determination of whether the Executive is a “specified employee” for purposes of
Section 409A(a)(2)(B)(i) of the Code as of the time of his separation from
service shall be made by the Company in accordance with the terms of Section
409A of the Code and applicable guidance thereunder (including without
limitation Section 1.409A-1(i) of the Department of Treasury Regulations and any
successor provision thereto); and

     

    (d) For
purposes of Section 409A of the Code, the Executive’s right to receive
installment payments pursuant to Section 7.1(a) shall be treated as a right to
receive a series of separate and distinct payments; and

     

    (e) The
reimbursement of any expense under Section 4.2 or Section 7.1 shall be made no
later than December 31 of the year following the year in which the expense was
incurred.  The amount of expenses reimbursed in one year shall not
affect the amount eligible for reimbursement in any subsequent
year.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    IN
WITNESS WHEREOF, the parties have executed this Agreement in duplicate originals
as of the day and year first above written.

     

    TANGER PROPERTIES LIMITED
PARTNERSHIP (Company)

    

    

    By:    /s/ Frank C. Marchisello
Jr.                               

    

    Print
Name:      Frank C. Marchisello,
Jr.                                                                

    

    Print
Title:      Vice President, Treasurer
and Assistant Secretary of Tanger GP Trust 

              its sole
general partner                                                                   

    

    

    

    

      /s/ Joseph
Nehmen                                                 (SEAL)

    Executive

    

    Print
Name:  JOSEPH
NEHMENfl_8ka1002ex101.htm

    
      Exhibit
10.1

      
 

       

      AMENDED
AND RESTATED

      EMPLOYMENT
AGREEMENT

       

       

      THIS
AMENDED AND RESTATED EMPLOYMENT AGREEMENT (the “Agreement”) is made and
entered into as of December 31, 2008 by and between The Finish Line, Inc. (the
“Company”) and Glenn S. Lyon (“Executive”).

       

      WHEREAS,
Executive is currently employed by the Company and is a party to that certain
Employment Agreement (the “Original Agreement”) between
the Company and Executive dated October 30, 2006 (the “Effective Date”);
and

       

      WHEREAS,
the Company and Executive desire to amend and restate the Original Agreement as
set forth herein;

       

      NOW,
THEREFORE, in consideration of the premises and mutual covenants contained
herein and for other good and valuable consideration, the receipt of which is
mutually acknowledged, the Company and Executive agree as follows:

       

      1.      Employment; Term. The
Company hereby agrees to continue to employ Executive, and Executive hereby
accepts such employment with the Company, in each case, on the terms and subject
to the conditions hereinafter set forth. Subject to the provisions of Section 7
of this Agreement, Executive shall be employed by the Company for a four-year
period commencing on the Effective Date and ending on the fourth anniversary of
the Effective Date (as such period may be extended pursuant to the terms hereof,
the “Employment Term”) on the terms and
subject to the conditions set forth in this Agreement; provided, however, that
commencing with the fourth anniversary of the Effective Date and on each
anniversary thereafter (each an “Extension Date”), the Employment Term
shall be automatically extended for an additional one-year period, unless the
Company or Executive provides the other party hereto with written notice at
least 180 days before the next Extension Date that the Employment Term shall not
be so extended (“Non-Renewal
Notice”).

       

      2.      Position.

       

      (a)                 While
employed by the Company hereunder, Executive shall serve as the Company’s Chief
Executive Officer. In such position, Executive shall have such duties and
authority as shall be determined from time to time by the board of directors of
the Company (the “Board”).

       

      (b)                 While
employed by the Company hereunder, Executive will devote his full business time
and best efforts to the performance of Executive’s duties hereunder and will not
engage in any other business, profession or occupation for compensation or
otherwise which would conflict or interfere with the rendition of such services
to the Company either directly or indirectly, without the prior written consent
of the Board.

       

      (c)                 Executive’s
principal place of employment shall be at the Company’s corporate headquarters
in Indianapolis, Indiana.

       

      3.      Base Salary. As
compensation for services rendered to the Company, the Company shall initially
pay Executive a base salary at the annual rate of $620,000. Executive shall be
entitled to such increases in Executive’s base salary, if any, as may be
determined from time to time in the sole discretion of the Board. Executive’s
annual base salary, as in effect from time to time, is hereinafter referred to
as the “Base Salary.”

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

      4.      Bonus. In addition to
the Base Salary, the Executive shall be eligible to participate in such annual
and long-term incentive bonus compensation programs or arrangements established
from time to time for executives of the Company.

       

      5.      Employee Benefits.
While employed by the Company hereunder, Executive shall be entitled to
participate in the Company’s employee benefit plans as in effect from time to
time, on the same basis as those benefits are generally made available to other
peer executives of the Company.

       

      6.      Business Expenses.
While employed by the Company hereunder, reasonable business expenses (including
travel expenses) incurred by Executive in the performance of Executive’s duties
hereunder shall be reimbursed by the Company in accordance with Company
policies.

       

      7.      Termination.
Executive’s employment hereunder may be terminated by either party at any time
and for any or no reason; provided that Executive will be required to give the
Company advance written notice of any resignation of Executive’s employment (as
set forth in this Section 7). Notwithstanding any other provision of this
Agreement, the provisions of this Section 7 shall exclusively govern Executive’s
rights upon termination of employment with the Company and its
affiliates.

       

      (a)                 By the Company For Cause or
By Executive Resignation without Good Reason.

       

      (i)           Executive’s
employment hereunder may be terminated by the Company for Cause (as defined
below) at any time upon delivery of advance written notice to Executive and, if
in the reasonable determination of the Company the acts or omissions of
Executive providing the basis for termination for Cause as set forth in Section
7(a)(ii) are curable, after Executive’s failure to cure during a period of 35
days following the date of the delivery of such written notice. Any
determination of a Cause by the Company pursuant to the items contained in
Sections 7(a)(ii)(A), (B) and (D) may only be made by a majority of the Board.
Executive’s employment hereunder shall terminate automatically upon Executive’s
resignation without Good Reason (as defined in Section 7(c)); provided that
Executive will be required to give the Company at least 30 days advance written
notice of a resignation without Good Reason.

       

      (ii)           For
purposes of this Agreement, “Cause” shall mean (A) the
willful and continued failure by Executive to perform his material duties with
respect to the Company or its affiliates for a period of more than 30 days; (B)
the willful or intentional engaging by Executive in conduct within the scope of
his employment that causes material and demonstrable injury, monetarily or
otherwise, to the Company including, without limitation, embezzlement or theft;
(C) Executive’s conviction for, or a plea of nolo contendre to, the commission
of a felony involving moral turpitude; or (D) a material breach of Executive’s
covenants set forth in Section 8 and 9 of this Agreement that causes a material
and demonstrable injury, monetarily or otherwise, to the Company.

       

      (iii)           If
Executive’s employment is terminated by the Company for Cause, or if Executive
resigns without Good Reason (except under the circumstances described in Section
7(e) or as provided in Section 7(d)(iii)), Executive shall be entitled to
receive:

       

      (A)                 the
Base Salary through the date of termination (including payment for any accrued
but unused vacation time);

       

      (B)                 any
earned but unpaid portion of Executive’s annual performance bonus (if any) for
the year preceding the year in which such termination occurs;

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

      (C)                 reimbursement
for any unreimbursed business expenses properly incurred by Executive in
accordance with Company policy prior to the date of Executive’s termination;
and

       

      (D)                 such
employee benefits, if any, as to which Executive may be entitled under the
employee benefit plans of the Company according to their terms (the amounts
described in clauses (A) through (D) hereof, reduced by any amounts owed by
Executive to the Company, being referred to as the “Accrued Rights”).

       

      Following
such termination of Executive’s employment by the Company for Cause or
resignation without Good Reason by Executive, except as set forth in this
Section 7(a)(iii) or in Section 7(e) or Section 7(d), Executive shall have no
further rights to any compensation or any other benefits under this
Agreement.

       

      (b)                 Disability or
Death.

       

      (i)           Executive’s
employment hereunder shall terminate upon Executive’s death and may be
terminated by the Company if Executive becomes (in the good faith judgment of
the Board) physically or mentally incapacitated and is therefore unable for a
period of three (3) consecutive months or for an aggregate of six (6) months in
any twelve (12) consecutive month period to perform Executive’s duties (such
incapacity is hereinafter referred to as “Disability”).

       

      (ii)           Upon
termination of Executive’s employment hereunder for either Disability or death,
Executive or Executive’s estate (as the case may be) shall be entitled to
receive the Accrued Rights.

       

      Following
Executive’s termination of employment due to death or Disability, except as set
forth in this Section 7(b)(ii), Executive shall have no further rights to any
compensation or any other benefits under this Agreement.

       

      (c)                 By the Company Without
Cause, Resignation of Executive with Good Reason or Non-Renewal of
Agreement.

       

      (i)           Executive’s
employment hereunder may be terminated by the Company at any time without Cause.
Executive’s employment hereunder may be terminated by Executive for Good Reason
(as defined below).

       

      (ii)          For
purposes of this Agreement, “Good Reason” shall mean if, other
than for Cause, any of the following has occurred: (A) any reduction in the Base
Salary or Executive’s annual bonus opportunity (except for across the board
reductions for all similarly situated executives of the Company); (B) a transfer
of Executive’s primary workplace by more than thirty-five (35) miles from its
location as of the Effective Date; (C) a material breach by the Company of this
Agreement; or (D) if such termination of employment occurs within 30 days prior
to or 2 years following a Change in Control (as defined in Section 7(d)), any of
(1) a substantial reduction in Executive’s authority, duties or
responsibilities, or (2) the assignment of any duties or responsibilities
inconsistent with Executive’s position with the Company; provided, however, that, in each case,
Good Reason shall cease to exist for an event to the extent that (x) Executive
shall have consented, in advance, to such event, (y) 90 days shall elapsed
following the initial existence of such event without the Company receiving
notice of Good Reason for such event, or (z) Executive has provided the Company
with a notice 

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

       

      specifying
the event within 90 days of the initial existence of such event and the Company
has failed to remedy the event within 30 days after receipt of such notice from
Executive.

       

      (iii)           Except
as set forth in Section 7(d), if Executive’s employment is terminated by the
Company without Cause (other than by reason of death or Disability) or if
Executive resigns for Good Reason, in either case, other than within the period
that begins 30 days prior to a Change in Control and ends 2 years following a
Change in Control, Executive shall be entitled to receive:

       

      (A)                 the
Accrued Rights; and

       

      (B)                 subject
to (I) Executive’s continued compliance with the provisions of Sections 8 and 9
hereof and (II) Executive’s execution and non-revocation of a general release in
favor of the Company and its affiliates in a form reasonably acceptable to the
Company:

       

      (1)           a
lump sum cash payment equal to 2 times the Base Salary,
payable, subject to Section 7(g), within 30 days following the date of such
termination of employment (the “Termination Date”); and

       

      (2)           continued
provision of group health benefits to Executive and his dependents for two
years following the
Termination Date in accordance with the terms thereof and with the same cost as
if Executive remained employed during such period; and

       

      (3)           if
Executive was eligible to receive one or more cash bonuses for the calendar year
during which Executive’s employment is terminated (the “Termination Year”), an amount equal to the
greater of (y) a pro-rated portion (based on the number of days in the
Termination Year during which Executive was employed) of the annual bonus and
any other bonus Executive would have received for Termination Year had he
remained employed through the entire year (based on the Company’s actual results
for the Termination Year) or (z) the average annual bonus actually paid to
Executive over the three full fiscal years prior to the Termination Date,
payable, subject to Section 7(g), when bonuses are generally paid to the
Company’s executives for the Termination Year but no later than two and one half
months after the end of the year in which the bonus was earned.

       

      (iv)           Except
as set forth in Section 7(d), if the Company provides Executive with a written
Non-Renewal Notice and in connection therewith, notifies Executive that his
employment shall terminate without Cause at the end of the Employment Term,
Section 7(c)(iii) shall not apply and Executive shall be entitled to receive, if
Executive does not resign, die or suffer a Disability prior to the end of the
Employment term or if Executive is not terminated for Cause prior to the end of
the Employment Term:

       

      (A)                 the
Accrued Rights; and

       

      (B)                 subject
to (I) Executive’s continued compliance with the provisions of Sections 8 and 9
hereof and (II) Executive’s execution and non-revocation of a general release of
employment related claims in favor of the Company and its affiliates in a form
reasonably acceptable to the Company:

       

      (1)           a
lump sum cash payment equal to the Base Salary, payable, subject to Section
7(g), within 30 days following the Termination Date;

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

       

      (2)           continued
provision of group health benefits to Executive and his dependents for one year
following the Termination Date in accordance with the terms thereof and with the
same cost as if Executive remained employed during such period; and

       

      (3)           if
Executive was eligible to receive one or more cash bonuses for the calendar year
during which Executive’s employment is terminated (the “Termination Year”), an amount equal to a
pro-rated portion (based on the number of days in the Termination Year during
which Executive was employed) of the annual bonus and any other bonus Executive
would have received for Termination Year had he remained employed through the
entire year (based on the Company’s actual results for the Termination Year),
payable, subject to Section 7(g), when bonuses are generally paid to the
Company’s executives for the Termination Year but no later than two and one half
months after the end of the year in which the bonus was earned.

       

      Following
Executive’s termination of employment by the Company without Cause (other than
by reason of Executive’s death or Disability) or by Executive’s resignation for
Good Reason, except as set forth in this Section 7(c)(iii), Section 7(c)(iv) or
in Section 7(d), Executive shall have no further rights to any compensation or
any other benefits under this Agreement.

       

      (d)                 Change in
Control.

       

      (i)           For
purposes of this Agreement, “Change in Control” shall mean the
consummation of one or more of the following:

       

      (A)                 the
sale, exchange, lease or other disposition, in one or a series of related
transactions, of all or substantially all of the assets of the Company to any
“person” or “group” (as such terms are used in the Securities Exchange Act of
1934, as amended);

       

      (B)                 any
person or group, other than Alan Cohen, David Klapper or Larry Sablosky (each a
“Founder”), is or becomes the beneficial owner, directly or indirectly, of more
than 35% of the total voting power of the voting stock of the Company (or any
entity which controls the Company or which is a successor to all or
substantially all of the assets of the Company), including by way of merger,
consolidation, tender or exchange offer or otherwise;

       

      (C)                 a
merger, consolidation or similar reorganization of the Company with or into
another entity, if the shareholders of the common stock of the Company
immediately prior to such transaction do not own a majority of the voting power
of the voting stock of the surviving company or its parent immediately after the
transaction in substantially the same proportions as immediately prior to such
transaction; or

       

      (D)                 during
any 12-month period, individuals who at the beginning of such period constituted
the Board (together with any new directors whose election by the Board (whether
through the filling of a vacancy or otherwise) or whose nomination for election
by the shareholders of the Company was approved by a vote of a majority of the
directors of the Company then still in office, who were either directors at the
beginning of such period or whose election or nomination for election was
previously so approved) cease for any reason to constitute a majority of the
board of directors then in office.

       

      (ii)           In
the event of a Change in Control (determined without regard to subclause (A) of
the definition set forth in Section 7(d)(i)), notwithstanding any provision in
any equity compensation plan maintained by the Company or any award agreement
between the 

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

       

      Company
and Executive, all stock options and awards of restricted stock granted to
Executive, which are outstanding and have not otherwise vested shall be deemed
vested immediately prior to the consummation of the Change in Control
(determined without regard to subclause (A) of the definition set forth in
Section 7(d)(i)). For purposes of this Section 7(d)(ii), the terms “stock
option” and “restricted stock” should be read to include all other similar
equity instruments.

       

      (iii)           If
Executive’s employment is terminated by the Company without Cause (other than by
reason of death or Disability) or if Executive resigns for Good Reason, in
either case, during the period that begins 30 days prior to a Change in Control
(as defined below) and ends 2 years following a Change in Control, Executive
shall be entitled to receive:

       

      (A)                 the
Accrued Rights; and

       

      (B)                 subject
to (I) Executive’s continued compliance with the provisions of Sections 8 and 9
hereof and (II) Executive’s execution and non-revocation of a general release of
employment related claims in favor of the Company and its affiliates in a form
reasonably acceptable to the Company:

       

      (1)           a
lump sum cash payment equal to 2.5 times the sum of (i) the Base Salary, plus
(ii) Executive’s target annual bonus for Termination Year, plus (iii) the value
of any other bonus the executive could have earned during the year of
termination pursuant to the Company’s then existing bonus programs, payable,
subject to Section 7(g), within 30 days following the Termination Date;
and

       

      (2)           continued
provision of group health benefits to Executive and his dependents for two years
following the Termination Date in accordance with the terms thereof and with the
same cost as if Executive remained employed during such period.

       

      Following
Executive’s termination of employment by the Company without Cause (other than
by reason of Executive’s death or Disability) or by Executive’s resignation for
Good Reason, except as set forth in this Section 7(d)(iii), Section 7(c)(iii),
or Section 7(c)(iv), Executive shall have no further rights to any compensation
or any other benefits under this Agreement.

       

      (e)                 By Executive without Good
Reason Following a Change in Control. If Executive resigns without Good
Reason during the 30-day period that begins on the first anniversary of a Change
in Control, Executive shall be entitled to receive:

       

      (i)           the
Accrued Rights; and

       

      (ii)           subject
to (I) Executive’s continued compliance with the provisions of Sections 8 and 9
hereof and (II) Executive’s execution and non-revocation of a general release in
favor of the Company and its affiliates in a form reasonably acceptable to the
Company, a lump sum cash payment equal to the Base Salary, payable, subject to
Section 7(g), within 30 days following the Termination Date.

       

      (f)                 Parachute
Taxes.

       

      (i)           If
any payments, rights or benefits (whether pursuant to the terms of this
Agreement or any other plan, arrangement or agreement of Executive with the
Company or any person affiliated with the Company) (“Covered Payments”) received or to be
received by Executive will be subject to the tax (the “Excise Tax”) imposed by Section 4999
of the Internal Revenue Code of 1986, as amended (the “Code”) (or any similar tax
that may hereafter be 

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

       

      imposed),
then, except as set forth in Section 7(f)(ii), the Company shall pay to
Executive an amount in addition to the Covered Payments (“Gross-Up Payment”) as calculated below.
The Gross-Up Payment shall be in an amount such that, after deduction of any
Excise Tax on the Covered Payments and any federal, state and local income and
employment tax and Excise Tax on the Gross-Up Payment, but before deduction for
any federal, state or local income and employment tax on the Covered Payments,
the net amount retained by the Executive shall be equal to the Covered
Payments.

       

      (ii)           Notwithstanding
anything in this Agreement to the contrary, if the Covered Payments do not
exceed 110% of Safe Harbor Amount (as defined below), then the portion of the
Covered Payments that would be treated as “parachute payments” under Section
280G of the Code (“Covered Parachute Payments”) shall be reduced so
that the Covered Parachute Payments, in the aggregate, are reduced to the Safe
Harbor Amount. For purposes of this Agreement, the term “Safe Harbor Amount” means the largest
portion of the Covered Payments that would result in no portion of the Covered
Payments being subject to the Excise Tax. In the event that it is determined
that the amount of any Covered Payments will be reduced in accordance with this
Section 7(f), Executive shall have the right to designate which of the Covered
Payments shall be reduced and to what extent, provided that Executive may not so
elect to the extent that, in the determination of counsel to the Company, such
election would cause Executive to be subject to the Excise Tax.

       

      (iii)           The
determination of (A) whether an event described in Section 280G(b)(2)(A)(i) of
the Code has occurred, (B) the amount of any Gross-Up Payment, (C) the value of
any Covered Parachute Payments and the Safe Harbor Amount, (D) whether any
reduction in the Covered Payments is required under Section 7(f)(ii), and (E)
the amount of any such reduction, shall be made initially by an independent
accounting firm selected by the Board as constituted prior to any Change in
Control (the “Accountants”). For purposes of
making the calculations required by this Section 7(f), the Accountants may make
reasonable assumptions and approximations concerning applicable taxes and may
rely on reasonable, good faith interpretations concerning the application of the
Code, and other applicable legal authority. The Company and Executive shall
furnish to the Accountants such information and documents as the Accountants may
reasonably request in order to make a determination under this Section 7(f). The
Company shall bear and be solely responsible for all costs the Accountants may
reasonably incur in connection with any calculations contemplated by this
Section 7(f).

       

      (iv)           Executive
shall promptly notify the Company in writing of any claim by any taxing
authority that, if successful, would require the payment by the Company of a
Gross-Up Payment; provided, however, that failure by Executive to give such
notice promptly shall not result in a waiver or forfeiture of any of Executive’s
rights under this Section 7(f), except to the extent of actual damages suffered
by the Company as a result of such failure. If the Company notifies Executive in
writing within 15 days after receiving such notice that it desires to contest
such claim (and demonstrates to the reasonable satisfaction of Executive its
ability to pay any resulting Gross-Up Payment), Executive shall:

       

      (A)                 give
the Company any information reasonably requested by the Company relating to such
claim;

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

       

      (B)                 take
such action in connection with contesting such claim as the Company shall
reasonably request in writing from time to time, including, without limitation,
accepting legal representation with respect to such claim by an attorney
selected by the Company that is reasonably acceptable to Executive;

       

      (C)                 cooperate
with the Company in good faith in order effectively to contest such claim;
and

       

      (D)                 permit
the Company to participate in any proceedings relating to such
claim;

       

      provided,
however, that the Company’s actions do not unreasonably interfere with or
prejudice Executive’s disputes with the taxing authority as to other issues; and
provided, further, that the Company shall bear and pay on an after-tax and
as-incurred basis, all attorneys fees, costs and expenses (including additional
interest, penalties and additions to tax) incurred in connection with such
contest and shall indemnify and hold Executive harmless, on an after-tax and
as-incurred basis, for all resulting taxes (including, without limitation,
income and excise taxes), interest, penalties and additions to tax.

       

      (v)           Notwithstanding
anything herein to the contrary, any payment required under this Section 7(f)
shall be made by the end of Executive’s taxable year next following the
Company’s taxable year in which Executive remits the payment.  In
addition, any right to reimbursement of expenses incurred due to a tax audit or
litigation addressing the existence or amount of a tax liability, whether
Federal, state, local, or foreign, shall be made by the end of Executive’s
taxable year following Executive’s taxable year in which the taxes that are the
subject of the audit or litigation are remitted to the taxing authority, or
where as a result of such audit or litigation no taxes are remitted, the end of
Executive’s taxable year following Executive’s taxable year in which the audit
is completed or there is a final and nonappealable settlement or other
resolution of the litigation.  This Section 7(f)(v) shall be
interpreted consistent with Treas. Reg. § 409A-3(i)(1)(v).

       

      (g)                 Effect of Section 409A of
the Code. Notwithstanding anything to the contrary in this Agreement, if
the Company determines (i) that on the date Executive’s employment with the
Company terminates or at such other time that the Company determines to be
relevant, Executive is a “specified employee” (as such term is defined under
Section 409A) of the Company and (ii) that any payments to be provided to
Executive pursuant to this Agreement are or may become subject to the additional
tax under Section 409A(a)(1)(B) of the Code or any other taxes or penalties
imposed under Section 409A of the Code (“Section 409A Taxes”) if provided at the
time otherwise required under this Agreement then (A) such payments shall be
delayed until the date that is six months after date of Executive’s “separation
from service” (as such term is defined under Section 409A of the Code) with the
Company, or such shorter period that, as determined by the Company, is
sufficient to avoid the imposition of Section 409A Taxes (the “Payment Delay Period”) and (B) such payments
shall be increased by an amount equal to interest on such payments for the
Payment Delay Period at a rate equal to the prime rate in effect as of the date
the payment was first due plus one point (for this purpose, the prime rate will
be based on the rate published from time to time in The Wall Street
Journal).

       

      (h)                 Notice of
Termination. Any termination of employment by the Company for Cause shall
be communicated by written Notice of Termination to Executive in accordance with
Section 11(h) hereof. In addition, any termination of employment by Executive
for Good Reason shall be communicated by written Notice of Termination to the
Company in accordance with Section 

       

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

       

      11(h)
hereof. For purposes of this Agreement, a “Notice of Termination” shall mean a
notice which shall indicate the specific termination provision in this Agreement
relied upon and shall set forth in reasonable detail the facts and circumstances
claimed to provide a basis for termination of employment under the provision so
indicated.

       

      (i)                 Board/Committee
Resignation. Upon termination of Executive’s employment for any reason,
Executive agrees that Executive shall automatically be deemed to have resigned,
as of the date of such termination, from the Board (and any committees thereof)
and the board of directors or similar governing body (and any committees
thereof) of any of the Company’s affiliates, and any position in which Executive
is acting on behalf of or as a representative of the Company (such as a trustee
or administrative committee member with respect to a tax-qualified retirement
plan).

       

      8.      Non-Competition;
Non-Solicitation.

       

      (a)                 Executive
acknowledges and recognizes the highly competitive nature of the businesses of
the Company and its affiliates and accordingly agrees as follows:

       

      (i)           During
the Restricted Period (as defined below), Executive will not, whether on
Executive’s own behalf or on behalf of or in conjunction with any person, firm,
partnership, joint venture, association, corporation or other business
organization, entity or enterprise whatsoever (“Person”), directly or
indirectly:

       

      (A)                 engage,
in a competitive capacity, in any business that competes with the Company’s
business in the athletic specialty and/or sporting goods retail industry (a
“Competitive Business”) in the United
States;

       

      (B)                 in
a competitive capacity, enter the employ of, or render any services to, or enter
into any contractual agreement or relationship with any Person (or any division
or controlled or controlling affiliate of any Person) that engages in a
Competitive Business;

       

      (C)                 acquire
a financial interest in, or otherwise become actively involved with, any
Competitive Business, directly or indirectly, as an individual, partner,
shareholder, officer, director, principal, agent, trustee or consultant or
transfer any business to, or in any other way facilitate any other Person’s
ability to engage in a Competitive Business; or

       

      (D)                 interfere
with, or attempt to interfere with, business relationships (whether formed
before, on or after the date of this Agreement) between the Company or any of
its affiliates and its customers, suppliers, partners, investors or
vendors.

       

      (ii)           Notwithstanding
anything to the contrary in this Agreement, Executive may, directly or
indirectly own, solely as an investment, securities of any Person engaged in a
Competitive Business that are publicly traded on a national or regional stock
exchange or on the over-the-counter market if Executive (i) is not a controlling
Person of, or a member of a group that controls, such Person and (ii) does not,
directly or indirectly, own 5% or more of any class of securities of such
Person.

       

      (iii)           During
the Restricted Period, Executive shall not, whether on Executive’s own behalf or
on behalf of or in conjunction with any Person, directly or
indirectly:

       

      (A)                 solicit
or encourage any employee of the Company or its affiliates to leave the
employment of the Company or its affiliates; or

       

      
        
          
          

        

        
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      (B)                 hire
any such employee who was employed by the Company or its affiliates as of the
date of Executive’s termination of employment with the Company or who left the
employment of the Company or its affiliates coincident with, or within one year
prior to or after, the termination of Executive’s employment with the
Company.

       

      (b)                 It
is expressly understood and agreed that although Executive and the Company
consider the restrictions contained in this Section 8 to be reasonable, if a
final judicial determination is made by a court of competent jurisdiction that
the time or territory or any other restriction contained in this Agreement is an
unenforceable restriction against Executive, the provisions of this Agreement
shall not be rendered void but shall be deemed amended to apply as to such
maximum time and territory and to such maximum extent as such court may
judicially determine or indicate to be enforceable. Alternatively, if any court
of competent jurisdiction finds that any restriction contained in this Agreement
is unenforceable, and such restriction cannot be amended so as to make it
enforceable, such finding shall not affect the enforceability of any of the
other restrictions contained herein.

       

      (c)                 For
purposes of this Agreement, “Restricted Period” shall mean the period
commencing on the Effective Date and ending (i) 12 months following the
Termination Date if Executive’s employment with the Company terminates under the
circumstances described in Section 7(c)(iv) or Section 7(e), (ii) 24 months
following the Termination Date if Executive’s employment with the Company
terminates under the circumstances described in Section 7(c)(iii) or Section
7(d)(iii), or (iii) upon the date Executive ceases to be employed by the Company
for any other reason.

       

      9.      Confidentiality;
Intellectual Property.

       

      (a)                 Confidentiality.

       

      (i)           Executive
will not at any time (whether during or after Executive’s employment with the
Company) (x) retain or use for the benefit, purposes or account of Executive or
any other Person (other than the Company); or (y) disclose, divulge, reveal,
communicate, share, transfer or provide access to any Person outside the Company
(other than its professional advisers who are bound by confidentiality
obligations), any non-public, proprietary or confidential information —including
without limitation trade secrets, know-how, research and development, software,
databases, inventions, processes, formulae, technology, designs and other
intellectual property, information concerning finances, investments, profits,
pricing, costs, products, services, vendors, customers, clients, partners,
investors, personnel, compensation, recruiting, training, advertising, sales,
marketing, promotions, store site selection, new store openings, government and
regulatory activities and approvals — concerning the past, current or future
business, activities and operations of the Company, its subsidiaries or
affiliates and/or any third party that has disclosed or provided any of same to
the Company on a confidential basis (“Confidential Information”) without the
prior written authorization of the Board.

       

      (ii)           “Confidential Information” shall not include
any information that is (a) generally known to the industry or the public other
than as a result of Executive’s breach of this covenant; (b) made legitimately
available to Executive without a confidentiality restriction by a third party
without breach of any confidentiality obligation of that third party; or (c)
required by law to be disclosed; provided that Executive shall give prompt
written notice to the Company of such requirement, disclose no more information
than is so required, and 

       

      
        
          
          

        

        
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      cooperate
with any attempts by the Company to obtain a protective order or similar
treatment.

       

      (iii)           Except
as required by law, Executive shall not disclose to anyone, other than
Executive’s immediate family and legal or financial advisors, the existence or
contents of this Agreement; provided that Executive may disclose to any
prospective future employer the provisions of Sections 8 and 9 of this Agreement
provided they agree to maintain the confidentiality of such terms.

       

      (iv)           Upon
termination of Executive’s employment with the Company for any reason, Executive
shall (x) cease and not thereafter commence use of any Confidential Information
or intellectual property (including without limitation, any patent, invention,
copyright, trade secret, trademark, trade name, logo, domain name or other
source indicator) owned or used by the Company, its subsidiaries or affiliates;
(y) immediately destroy, delete, or return to the Company, at the Company’s
option, all originals and copies in any form or medium (including memoranda,
books, papers, plans, computer files, letters and other data) in Executive’s
possession or control (including any of the foregoing stored or located in
Executive’s office, home, laptop or other computer, whether or not Company
property) that contain Confidential Information or otherwise relate to the
business of the Company, its affiliates and subsidiaries, except that Executive
may retain only those portions of any personal notes, notebooks and diaries that
do not contain any Confidential Information; and (z) notify and fully cooperate
with the Company regarding the delivery or destruction of any other Confidential
Information of which Executive is or becomes aware.

       

      (b)                 The
provisions of this Section 9 shall survive the termination of Executive’s
employment for any reason.

       

      10.                 Specific Performance.
Executive acknowledges and agrees that the Company’s remedies at law for a
breach or threatened breach of any of the provisions of Section 8 or Section 9
would be inadequate and the Company would suffer irreparable damages as a result
of such breach or threatened breach. In recognition of this fact, Executive
agrees that, in the event of such a breach or threatened breach, in addition to
any remedies at law, the Company shall be entitled to obtain equitable relief in
the form of specific performance, temporary restraining order, temporary or
permanent injunction or any other equitable remedy that may then be
available.

       

      11.                 Miscellaneous.

       

      (a)                 Governing Law;
Jurisdiction. This Agreement shall be governed by and construed in
accordance with the laws of the State of Indiana, without regard to conflicts of
laws principles thereof. Any and all disputes between the parties which may
arise pursuant to this Agreement will be heard and determined before an
appropriate federal court in the Southern District of Indiana, or, if not
maintainable therein, then in an appropriate Indiana state court in Marion
County, Indiana. The parties acknowledge that such courts have jurisdiction to
interpret and enforce the provisions of this Agreement, and the parties consent
to, and waive any and all objections that they may have as to, personal
jurisdiction and/or venue in such courts.

       

      (b)                 Entire
Agreement/Amendments. This Agreement contains the entire understanding of
the parties with respect to the employment of Executive by the Company. There
are no restrictions, agreements, promises, warranties, covenants or undertakings
between the parties with respect to 

       

      
        
          
          

        

        
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      the
subject matter herein other than those expressly set forth herein. This
Agreement may not be altered, modified, or amended except by written instrument
signed by the parties hereto.

       

      (c)                 No Waiver. The
failure of a party to insist upon strict adherence to any term of this Agreement
on any occasion shall not be considered a waiver of such party’s rights or
deprive such party of the right thereafter to insist upon strict adherence to
that term or any other term of this Agreement.

       

      (d)                 Severability. In the
event that any one or more of the provisions of this Agreement shall be or
become invalid, illegal or unenforceable in any respect, the validity, legality
and enforceability of the remaining provisions of this Agreement shall not be
affected thereby.

       

      (e)                 Assignment. This
Agreement, and all of Executive’s rights and duties hereunder, shall not be
assignable or delegable by Executive. Any purported assignment or delegation by
Executive in violation of the foregoing shall be null and void ab initio and of
no force or effect. This Agreement may be assigned by the Company to a Person
that is an affiliate or a successor in interest to any portion of the business
operations of the Company. Upon such assignment, the rights and obligations of
the Company hereunder shall become the rights and obligations of such affiliate
or successor Person.

       

      (f)                 Set Off; No
Mitigation. The Company’s obligation to pay Executive the amounts
provided and to make the arrangements provided hereunder shall be subject to
set-off, counterclaim or recoupment of amounts owed by Executive to the Company
or its affiliates; provided, however, that in no event shall Executive be
obligated to seek other employment or take any other action by way of mitigation
of the amounts payable to Executive under Section 7 of this
Agreement.

       

      (g)                 Successors; Binding
Agreement. This Agreement shall inure to the benefit of and be binding
upon personal or legal representatives, executors, administrators, successors,
heirs, distributees, devisees and legatees.

       

      (h)                 Notice. For the
purpose of this Agreement, notices and all other communications provided for in
the Agreement shall be in writing and shall be deemed to have been duly given
when delivered by hand or overnight courier or three days after it has been
mailed by United States registered mail, return receipt requested, postage
prepaid, addressed to the respective addresses set forth below in this
Agreement, or to such other address as either party may have furnished to the
other in writing in accordance herewith, except that notice of change of address
shall be effective only upon receipt.

       

      If to the
Company:

      The
Finish Line, Inc.

      3308 N.
Mitthoeffer Road

      Indianapolis,
Indiana 46235

      Attention:
Chairperson of the Compensation and Stock Option Committee

       

      If to
Executive:

       

      To the
most recent address of Executive set forth in the personnel records of the
Company.

       

      (i)                 Prior Agreements.
This Agreement supersedes all prior agreements and understandings (including
verbal agreements) between Executive and the Company and/or its affiliates
regarding 

       

      
        
          
          

        

        
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      the terms
and conditions of Executive’s employment with the Company and/or its affiliates
including, without limitation, the Original Agreement.

       

      (j)                 Cooperation.
Executive shall provide Executive’s reasonable cooperation in connection with
any action or proceeding (or any appeal from any action or proceeding), which
relates to events occurring during Executive’s employment hereunder. This
provision shall survive any termination of this Agreement.

       

      (k)                 Withholding Taxes.
The Company may withhold from any amounts payable under this Agreement such
Federal, state and local taxes as may be required to be withheld pursuant to any
applicable law or regulation.

       

      (l)                 Counterparts. This
Agreement may be signed in counterparts, each of which shall be an original,
with the same effect as if the signatures thereto and hereto were upon the same
instrument.

       

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remainder of this page is intentionally left blank.]

      
        
           

        

        
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      IN
WITNESS WHEREOF, the parties hereto have duly executed this Amended and Restated
Employment Agreement as of the day and year first above written.

       

      
        

        
          
            	
                    THE
      FINISH LINE, INC.

                  	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	
                    By:

                  	/s/
      Bill Kirkendall	 
      	/s/
      Glenn
      S. Lyon
	 
      	
                    Bill
      Kirkendall, Director

                  	 
      	
                    Glenn
      S. Lyon

                  

          

        

        
 

        14

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