Document:

Exhibit 10.1

 

AMENDMENT
TO

SECOND
AMENDED AND RESTATED EMPLOYMENT AGREEMENT

 

THIS AMENDMENT
is made effective on October 1, 2008 by and between MOTHERS WORK, INC.
(the “Company”) and EDWARD M. KRELL (“Employee”).

 

WHEREAS, the
Company and Employee are parties to a Second Amended and Restated Employment
Agreement dated as of May 15, 2007 (the “Employment Agreement”);
and

 

WHEREAS, Section 13
of the Employment Agreement provides that the Company and Employee may amend
the Employment Agreement by agreement in writing; and

 

WHEREAS, the
Company desires to appoint Employee to the position of Chief Executive Officer,
and the Employee desires to continue employment by the Company in such
position, on the terms and conditions set forth in the Employment Agreement as
hereby amended.

 

NOW,
THEREFORE, in consideration of these premises and intending to be legally bound
hereby, the Employment Agreement is hereby amended as follows, effective as of
the date first above written:

 

1.             The
“whereas” clauses in the preamble to the Employment Agreement are deleted in
their entirety and replaced with the following:

 

WHEREAS, the Company and Employee are parties
to an Amended and Restated Employment Agreement, dated April 26, 2005
pursuant to which Employee served as the Executive Vice President—Chief
Financial Officer of the Company (the “Existing Employment Agreement”);

 

WHEREAS, the Existing Employment Agreement
was amended and restated in its entirety by this Agreement to reflect Employee’s
promotion to the position of Chief Operating Officer; and

 

WHEREAS, this Agreement has been amended,
effective October 1, 2008, to reflect Employee’s promotion to the position
of Chief Executive Officer.

 

2.             Section 1
is amended in its entirety to read as follows:

 

EMPLOYMENT, TERM AND
DUTIES. The Company will continue to employ Employee
and Employee hereby accepts continued employment with the Company, as Chief
Executive Officer (the “Position”) on the terms herein described for the period
beginning on the date hereof and continuing until 

 

 

terminated by either party. During his
employment by the Company, except for reasonable vacations consistent with
paragraph 6(C), absences due to temporary illness or as otherwise provided
below in paragraph 5, Employee shall use his best efforts to serve the Company
faithfully and shall devote his full time, attention, skill and efforts to the
performance of the duties required by or appropriate for his Position. Employee
agrees to assume such duties and responsibilities as may be customarily
incident to the Position and as may be reasonably assigned to him from time to
time by the Company’s Board of Directors (the “Board”), consistent with the
Company’s Bylaws and with the level of responsibility appropriate to the
Position. The Company shall exercise its reasonable best efforts to cause
Employee to be nominated and elected (and, thereafter, re-elected, when
applicable) to the Board while he holds the Position. Upon any cessation of
Employee’s service in the Position, unless otherwise requested by the Board,
Employee agrees to resign from all director and officer positions with the
Company and its affiliates.

 

3.             Paragraph
2(C) and 2(H) are deleted in their entirety. Existing paragraphs 2(D),
2(E), 2(F), 2(G) and 2(I), and all references to any of those paragraphs,
are renumbered 2(C), 2(D), 2(E), 2(F) and 2(G), respectively.

 

4.             The
first sentence of existing paragraph 2(G)(2) (now paragraph 2(F)(2), as revised
pursuant to this Amendment) is amended to read as follows:

 

“Good Reason” means any of the following,
without Employee’s prior consent: (i) a material, adverse change in title,
authority or duties (including the assignment of duties materially inconsistent
with the Employee’s position); (ii) a reduction in base salary or bonus
opportunity (described in paragraph 6); or (iii) a relocation of Employee’s
principal worksite more than 50 miles.

 

5.             Paragraph
3 is renumbered paragraph 3(A) and is amended in its entirety to read as
follows:

 

If the termination giving rise to the
payments described in paragraph 2(B), 2(C) and 2(G) is not a “Separation
from Service” within the meaning of Treas. Reg. § 1.409A-1(h)(1) (or any
successor provision), then the amounts otherwise payable pursuant to those
paragraphs will instead be deferred without interest and will not be paid until
Employee experiences a Separation from Service. In addition, to the extent
compliance with the requirements of Treas. Reg. § 1.409A-3(i)(2) (or any
successor provision) is necessary to avoid the application of an additional tax
under Section 409A of the Code to payments due to Employee upon or
following his Separation from Service, then 

 

2

 

notwithstanding any other provision of this
Agreement (or any otherwise applicable plan, policy, agreement or arrangement),
any such payments that are otherwise due within six months following Employee’s
Separation from Service (taking into account the preceding sentence of this
paragraph) will be deferred without interest and paid to Employee in a lump sum
immediately following that six month period. This paragraph should not be
construed to prevent the application of Treas. Reg. §§ 1.409A-1(b)(4) or
-1(b)(9)(iii)(or any successor provisions) to any amount payable to Employee. For
purposes of the application of Treas. Reg. § 1.409A-1(b)(4)(or any successor
provision) to this Agreement, each payment in a series of payments will be
deemed a separate payment.

 

6.             A
new paragraph 3(B) is added to read as follows:

 

Notwithstanding anything in this Agreement to
the contrary or otherwise, to the extent an expense, reimbursement or in-kind
benefit provided pursuant to paragraph 2 constitutes a “deferral of
compensation” within the meaning of Section 409A of the Code (1) the
amount of expenses eligible for reimbursement or in-kind benefits provided to
the Employee during any calendar year will not affect the amount of expenses
eligible for reimbursement or in-kind benefits provided to the Employee in any
other calendar year, (2) the reimbursements for expenses for which the Employee
is entitled to be reimbursed shall be made on or before the last day of the
calendar year following the calendar year in which the applicable expense is
incurred and (3) the right to payment or reimbursement or in-kind benefits
hereunder may not be liquidated or exchanged for any other benefit.

 

7.             Paragraph 4(C)(1) is
amended by adding the following sentence immediately after the first sentence
of that paragraph:

 

Any additional payment made pursuant to this
paragraph 4(C)(1) shall be paid by the Company at the time the applicable
Parachute Excise Tax is required to be withheld by the Company and remitted to
the Internal Revenue Service or 5 business days before it is required to be
paid by the Employee.

 

8.             Paragraph 4(C)(3) is
amended by adding the following sentence to the beginning of such paragraph:

 

If a reduction to the Total Payments is
required pursuant to paragraph 4(C)(2), such reduction shall occur to the
payments, vesting or other benefits constituting the Total Payments in the 

 

3

 

order that results in the greatest economic
present value of all Total Payments actually made to Employee.

 

9.             Paragraph 6(A) is
amended by revising the Base Salary amount from $525,000 to $650,000.

 

10.           Paragraph 6(B) is
amended in its entirety to read as follows:

 

For each fiscal year ending during Employee’s
employment hereunder, Employee will be eligible to earn an annual bonus (the “Annual
Bonus”). The target amount of such Annual Bonus will be 100% of Employee’s Base
Salary for the applicable year, with a maximum Annual Bonus opportunity of 200%
of Employee’s Base Salary for the applicable year. The actual amount of any
Annual Bonus payable under this paragraph 6(B) will be paid in accordance
with the Mothers Work, Inc. Management Incentive Plan, based on the
Company’s achievement in the applicable fiscal year of corporate and/or
individual performance goals approved by the Board or its Compensation
Committee.

 

11.           Paragraphs 6(D)(2) and
6(D)(3) are amended in their entirety to read as follows:

 

(2)           reimburse Employee for (or pay on Employee’s
behalf) the reasonable costs of purchasing supplemental long term disability
insurance providing a disability benefit of up to $18,000 per month; and

 

(3)           reimburse Employee for (or pay on Employee’s
behalf) the reasonable costs of purchasing a supplemental term life insurance
policy providing a two million dollar ($2,000,000) death benefit.

 

12.           The
Employment Agreement, as amended by the foregoing changes, is hereby ratified
and confirmed in all respects.

 

[signature page follows]

 

4

 

IN WITNESS
WHEREOF, the Company has caused this Amendment to be executed by its duly
authorized officer and Employee has executed this Amendment, in each case on
the date(s) specified below.

 

	
   

  	
  MOTHERS WORK, INC.

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Rebecca C. Matthias

  
	
   

  	
   

  
	
   

  	
  Name & Title: 

  	
  Rebecca C. Matthias

  
	
   

  	
   

  	
  President and Chief Creative Officer

  
	
   

  	
   

  
	
   

  	
  Date: 

  	
  9/26/08

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  EDWARD M. KRELL

  
	
   

  	
   

  
	
   

  	
  /s/ Edward
  M. Krell

  
	
   

  	
   

  
	
   

  	
  Date: 

  	
  9/26/08Exhibit 10.2

 

TRANSITION AGREEMENT

 

THIS TRANSITION AGREEMENT
(this “Agreement”) is made by and between DAN W. MATTHIAS (“Executive”) and MOTHERS WORK, INC.
(the “Company”). This
Agreement is entered into on September 26, 2008.

 

WHEREAS, Executive has been
employed by the Company in the capacity of Chief Executive Officer under the Second
Amended and Restated Employment Agreement by and between the Company and
Executive dated March 2, 2007 (the “Employment Agreement”); and

 

WHEREAS, Executive has
served on the Company’s Board of Directors (the “Board”); and

 

WHEREAS, Executive has
announced his intention to retire from employment with the Company; and

 

WHEREAS, the Company desires
to provide for a smooth transition of the position of Chief Executive Officer and
for Executive to continue to serve as a Board member, with the title of Non-Executive
Chairman; and

 

WHEREAS, the Company
believes it is in the best interests of the Company and its stockholders to
enter into this Agreement.

 

NOW THEREFORE, in consideration
of these premises and the mutual promises contained herein, and intending to be
legally bound hereby, the parties agree as follows:

 

1.             Resignation and Transition.

 

1.1.          Effective on September 30, 2008 (the “Resignation
Date”), Executive hereby resigns (i) as an employee of the Company and
as its Chief Executive Officer, and (ii) from all other positions Executive
currently holds as an employee and officer of the Company or any of its
subsidiaries.

 

1.2.          For the period commencing on the Resignation Date
and ending on September 30, 2012 (the “Transition Period”),
Executive will remain available to the Company, when and as reasonably
requested by the Board or the Company’s Chief Executive Officer, to assist in
the transition of Executive’s duties to his successor, and will make himself
available to the executive management of the Company with respect to strategic
planning, corporate development and other matters as reasonably requested by
the Board or the Company’s Chief Executive Officer. The Company will exercise
reasonable efforts to schedule the time and place for the performance of such
advisory services pursuant to this Section 1.2 so as to not unduly
interfere with the Executive’s personal and other professional and employment
obligations.

 

1.3.          Following the Resignation Date, Executive will continue
to serve as a Board member and will have the title of Non-Executive Chairman. The
Company will exercise 

 

 

reasonable best efforts to cause Executive to be
nominated and re-elected to the Board for the period ending on the earlier of
the occurrence of a Change in Control (as defined in Section 2.2)
or the expiration of the Transition Period.

 

2.             Payments and Benefits. In connection
with the resignation from his position, and in consideration of the Executive’s
entering into this Agreement and providing the services described in Section 1,
Executive will be entitled to the following:

 

2.1.          Consideration for Board and Advisory Service. In
consideration of Executive’s providing advisory services to the Company
pursuant to Section 1.2, and the Executive’s service on the Board
pursuant to Section 1.3 during the Transition Period, Executive will
be paid an annual retainer of $200,000, payable in bi-weekly installments (the “Retainer”).
The Retainer will be the only consideration payable to the Executive for his
service on the Board and his performance of advisory services and, therefore,
Executive will not receive any meeting fees, equity awards, committee service
fees or any other compensation that may be payable to other Board members. If
Executive resigns from the Board, declines to stand for re-election to the
Board or is removed from the Board for cause (as such term is used in the
Company’s By-Laws), Executive’s entitlement to payment pursuant to this Section 2.1
will immediately cease. If the Executive’s service to the Board ceases because
Executive is not re-elected or is removed from the Board (other than for cause),
the Executive will continue to provide advisory services to the Company
pursuant to Section 1.2 and will be entitled to receive the
Retainer for the remainder of the Transition Period. In the event of a Change
in Control (as defined below in Section 2.2) while Executive
remains in service to the Company (whether as a Board member or advisor), the
unpaid portion of the Retainer that would otherwise be payable during the
remainder of the Transition Period will be accelerated and paid in a single
lump sum within 5 business days of such Change in Control. In the event of the
Executive’s death while he is in service to the Company (whether as a Board
member or advisor), the unpaid portion of the Retainer that would otherwise be
payable during the remainder of the Transition Period will be accelerated and
paid in a single lump sum to Executive’s designated beneficiary (or, in the
absence of a designated beneficiary, Executive’s spouse, or if Executive is
unmarried at the time of his death, his estate) within 30 business days of his
death.

 

2.2.          Supplemental Retirement Agreement. The Company
and Executive acknowledge and agree that the Supplemental Retirement Agreement
by and between the Company and Executive dated March 2, 2007  (the “SERP”) is hereby amended to
provide for the payment in the amounts and on the dates indicated below:

 

	
  Payment Date

  	
   

  	
  Payment Amount

  	
   

  
	
  April 1, 2009

  	
   

  	
  $

  	
  960,000

  	
   

  
	
  July 1, 2009

  	
   

  	
  $

  	
  600,000

  	
   

  
	
  January 1, 2010

  	
   

  	
  $

  	
  300,000

  	
   

  
	
  April 1, 2010

  	
   

  	
  $

  	
  300,000

  	
   

  
	
  July 1, 2010

  	
   

  	
  $

  	
  300,000

  	
   

  
	
  October 1, 2010

  	
   

  	
  $

  	
  300,000

  	
   

  
	
  January 1, 2011

  	
   

  	
  $

  	
  150,000

  	
   

  
	
  April 1, 2011

  	
   

  	
  $

  	
  150,000

  	
   

  
	
  July 1, 2011

  	
   

  	
  $

  	
  150,000

  	
   

  
	
  October 1, 2011

  	
   

  	
  $

  	
  150,000

  	
   

  
	
  January 1, 2012

  	
   

  	
  $

  	
  150,000

  	
   

  
	
  April 1, 2012

  	
   

  	
  $

  	
  150,000

  	
   

  
	
  July 1, 2012

  	
   

  	
  $

  	
  150,000

  	
   

  
	
  October 1, 2012

  	
   

  	
  $

  	
  150,000

  	
   

  

 

2

 

(i)            Executive is fully vested in
his right to the payments specified in the foregoing schedule. In the event of
Executive’s death prior to the payment of all such amounts, any unpaid
installments will be paid, at the same time(s) specified in the foregoing schedule,
to Executive’s designated beneficiary (or, in the absence of a designated
beneficiary, Executive’s spouse, or if Executive is unmarried at the time of
his death, his estate). In the event of a Change in Control (as defined below)
prior to the payment of all such amounts, any unpaid installments will be accelerated
and paid in a single lump sum, within 5 business days following such Change in
Control. The parties acknowledge that this amendment is intended to be a transition
election permitted under Section 409A of the Internal Revenue Code of
1986, as amended, on or before December 31, 2008.

 

(ii)           The Trust Agreement for
Supplemental Retirement Agreements dated April 27, 2007 (the “Trust”)
between the Company and Wachovia Bank (the “Trustee”) will remain in
full force and effect, and the Trustee will continue to hold the letter(s) of
credit contemplated by the letter dated May 20, 2008 by and among the
Executive, Rebecca C. Matthias and the Trustee, while any amounts payable under
the SERP remain unpaid. As soon as reasonably practicable, but in any event within
30 days following the Resignation Date, the aggregate amount of such letter(s) of
credit attributable to Executive’s SERP accrual will be increased to an amount
equal to the sum of the installments listed on the foregoing schedule. Thereafter,
such letter(s) of credit will be maintained in an aggregate amount not
less than the sum of any then remaining unpaid installments.

 

(iii)          Executive acknowledges and
agrees that the payments described in this Section 2.2 constitute a
complete satisfaction of all his rights under the SERP, that no other benefits will
accrue to him and no other payments will be made to him in respect of the SERP.

 

(iv)          For purposes of this
Agreement, “Change in Control” will have the meaning given it in the Employment
Agreement, except that no event or transaction will constitute a “Change in
Control” unless it also constitutes a change in control event within the
meaning of Treas. Reg. § 1.409A-3(i)(5) or any successor provision.

 

2.3.          Fringe Benefits, etc. During the period with
respect to which the Retainer is payable, Executive will be entitled to a
continuation of the benefits described in Sections 1, 3 and 7 of Schedule
A to the Employment Agreement and to reasonable computer and communication
support consistent with that now provided. In addition, Executive will be 

 

3

 

entitled to the health plan continuation coverage
rights described in Section 9.3(c)(iii) of the Employment
Agreement.

 

2.4.          Equity Grants. Executive’s service as a Board
member or advisor will be counted as service for purposes of the vesting and
survival of all equity incentives granted to Executive by the Company prior to
the date hereof.

 

3.             No Additional Benefits. Executive acknowledges
and agrees that: (i) the execution of this Agreement and payments made
hereunder will constitute satisfaction in full of the Company’s obligations
under the Employment Agreement and the SERP; (ii) except as expressly
provided herein, Executive’s coverage under any benefit plan, program, policy
or arrangement sponsored or maintained by the Company will cease and be
terminated as of the Resignation Date, except to the extent provided by Section 4.3;
(iii) he has no entitlement under any other severance or similar arrangement
maintained by the Company; and (iv) except as otherwise provided
specifically in this Agreement, the Company does not and will not have any
other liability or obligation to Executive.

 

4.             Executive’s Release.

 

4.1.          Executive hereby fully and forever releases and
discharges the Company, its parent and subsidiary corporations and each of
their predecessors, successors, assigns, stockholders, affiliates, officers,
directors, trustees, employees, agents and attorneys, past and present (the
Company and each such person or entity is referred to as a “Released Person”) from any and all
claims, demands, liens, agreements, contracts, covenants, actions, suits,
causes of action, obligations, controversies, debts, costs, expenses, damages,
judgments, orders and liabilities, of whatever kind or nature, direct or
indirect, in law, equity or otherwise, whether known or unknown, arising
through the date of this Agreement out of Executive’s employment by the Company
or the cessation thereof, including, but not limited to, any claims for relief
or causes of action under the Age Discrimination in Employment Act, 29 U.S.C. §
621 et seq., or any other federal, state or
local statute, ordinance or regulation regarding discrimination in employment
and any claims, demands or actions based upon alleged wrongful or retaliatory
discharge or breach of contract under any state or federal law.

 

4.2.          Executive expressly represents that he has not filed
a lawsuit or initiated any other administrative proceeding against a Released
Person and that he has not assigned any claim against a Released Person. Executive
further promises not to initiate a lawsuit or to bring any other claim against
the other arising out of or in any way related to Executive’s employment by the
Company or the termination of that employment. This Agreement will not prevent Executive
from filing a charge with the Equal Employment Opportunity Commission (or
similar state agency) or participating in any investigation conducted by the
Equal Employment Opportunity Commission (or similar state agency); provided, however, that any claims by Executive for personal
relief in connection with such a charge or investigation (such as reinstatement
or monetary damages) would be barred.

 

4.3.          The foregoing will not be deemed to release the
Company from (i) claims solely to enforce Section 14 of the Employment
Agreement, (ii) claims for benefits (not including severance benefits)
under the Company’s employee welfare benefit plans and 401(k) 

 

4

 

plan, subject to the terms and conditions of those
plans, or (iii) claims for indemnification under the Company’s By-Laws.

 

5.             Company Release.

 

5.1.          The Company hereby fully and forever releases and
discharges the Executive and his executors, administrators and heirs from any
and all claims, demands, liens, agreements, contracts, covenants, actions,
suits, causes of action, obligations, controversies, debts, costs, expenses,
damages, judgments, orders and liabilities, of whatever kind or nature, direct
or indirect, in law, equity or otherwise, whether known or unknown, arising
through the date of this Agreement out of Executive’s service to the Company or
the cessation thereof.

 

5.2.          The Company expressly represents that it has not filed
a lawsuit or initiated any other administrative proceeding against Executive
and that it has not assigned any claim against Executive. The Company further
promises not to initiate a lawsuit or to bring any other claim against Executive
arising out of or in any way related to Executive’s service to the Company or
the termination thereof.

 

5.3.          The foregoing will not be deemed to release Executive
from claims (i) to enforce Sections 7, 8 and 21 of the Employment
Agreement, (ii) arising from acts or omissions by Executive that would
constitute a crime, or (iii) that are not known to any member of the Board
or executive management, other than Executive or Rebecca Matthias (provided
that a claim will be deemed known if the basis for each material element of the
claim could have been ascertained by the Board or executive management, other
than Executive or Rebecca Matthias, prior to the date hereof upon reasonable
inquiry).

 

6.             Restrictive  Covenants. Executive
acknowledges that the restrictive covenants contained in Section 7, 8
and 21 of the Employment Agreement, as amended by this Section 6,
will survive the termination of his employment and service on the Board. Executive
affirms that those restrictive covenants are reasonable and necessary to
protect the legitimate interests of the Company, that he received adequate
consideration in exchange for agreeing to those restrictions and that he will
abide by those restrictions. The Company and Executive acknowledge and agree
that the term “Restricted Period,” as used in the Employment Agreement, will
hereafter be construed to mean the period of Executive’s service to the Company
in any capacity (including service as a Board member or advisor) and the two-year
period following the cessation of that service.

 

7.             Non-Disparagement. Executive
will not disparage any Released Person or otherwise take any action which could
reasonably be expected to adversely affect the personal or professional
reputation of any Released Person. Similarly, the Company (meaning, solely for
this purpose, the executive officers and directors of the Company and other
persons authorized to make official communications on behalf of the Company)
will not disparage Executive or otherwise take any action which could
reasonably be expected to adversely affect the personal or professional
reputation of Executive. Notwithstanding the foregoing, in no event will any
legally required disclosure or action be deemed to violate this paragraph,
regardless of the content of such disclosure or the nature of such action.

 

5

 

8.             Cooperation. Executive further agrees
that, subject to reimbursement of his reasonable expenses, he will cooperate
fully with the Company and its counsel with respect to any matter (including
litigation, investigations, or governmental proceedings) in which Executive was
in any way involved during his employment with the Company. Executive will
render such cooperation in a timely manner on reasonable notice from the
Company, provided that the Company will attempt to limit the need for Executive’s
cooperation under this paragraph so as not to unduly interfere with his other
personal and professional or employment commitments.

 

9.             Rescission Right. Executive
expressly acknowledges and recites that (i) he has read and understands
the terms of this Agreement in its entirety, (ii) he has entered into this
Agreement knowingly and voluntarily, without any duress or coercion; (iii) he
has been advised orally and is hereby advised in writing to consult with an
attorney with respect to this Agreement before signing it; (iv) he was
provided 21 calendar days after receipt of the Agreement to consider its terms
before signing it; and (v) he is provided 7 calendar days from the date of
signing to terminate and revoke this Agreement, in which case this Agreement will
be unenforceable, null and void. Executive may revoke this Agreement during
those 7 days by providing written notice of revocation to the Company at the
address specified in Section 16 of the Employment Agreement.

 

10.           Miscellaneous.

 

10.1.        Tax Withholding. All payments (or transfers
of property) to Executive will be subject to tax withholding in accordance with
applicable law.

 

10.2.        No Admission of Liability. This Agreement
is not to be construed as an admission of any violation of any federal, state
or local statute, ordinance or regulation or of any duty owed by the Company to
Executive. There have been no such violations, and the Company specifically
denies any such violations.

 

10.3.        Severability. Whenever possible, each
provision of this Agreement will be interpreted in such manner as to be
effective and valid under applicable law. However, if any provision of this Agreement
is held to be invalid, illegal or unenforceable in any respect, such
invalidity, illegality or unenforceability will not affect any other provision,
and this Agreement will be reformed, construed and enforced as though the
invalid, illegal or unenforceable provision had never been herein contained.

 

10.4.        Entire Agreement; Amendments. Except as
otherwise provided herein, this Agreement contains the entire agreement and
understanding of the parties hereto relating to the subject matter hereof, and
merges and supersedes all prior and contemporaneous discussions, agreements and
understandings of every nature relating to the subject matter hereof. This Agreement
may not be changed or modified, except by an agreement in writing signed by
each of the parties hereto.

 

10.5.        Governing Law. This Agreement will be
governed by, and enforced in accordance with, the laws of the State of
Delaware, without regard to the application of the principles of conflicts of
laws.

 

6

 

10.6.        Successors and Assigns. This
Agreement shall inure to the benefits of and be binding upon the Company and
the Executive and their respective successors, executors, administrators, heirs
and assigns, except that the parties obligations hereunder may not be assigned
without the prior written consent of the other party. Notwithstanding the
foregoing, without the Executive’s consent, the Company may assign its benefits
and rights under the restrictive covenants contained in Section 7, 8
and 21 of the Employment Agreement to any successor to all or substantially
all of its assets and business by means of liquidation, dissolution, merger,
consolidation, transfer of assets, or otherwise.

 

10.7.        Counterparts and Facsimiles. This Agreement
may be executed, including execution by facsimile signature, in multiple
counterparts, each of which will be deemed an original, and all of which
together will be deemed to be one and the same instrument.

 

[Signature page follows.]

 

7

 

IN WITNESS WHEREOF, the
Company has caused this Agreement to be executed by its duly authorized
officer, and Executive has executed this Agreement, in each case on the date first
indicated above.

 

	
   

  	
  MOTHERS WORK, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Edward M. Krell

  
	
   

  	
   

  
	
   

  	
  Name & Title: 

  	
  Edward M. Krell

  
	
   

  	
   

  	
  Chief Operating Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  DAN W. MATTHIAS

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Dan W. Matthias

  
				

 

8

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