Document:

Exhibit 10.3

 

GUESS?, INC.

 

2002 EMPLOYEE
STOCK PURCHASE PLAN

 

(Amended and Restated Effective March 4, 2009)

 

1.             Purpose.  The Company maintains the Guess?, Inc.
2002 Employee Stock Purchase Plan, which was approved by the Company’s
stockholders on May 13, 2002, amended as of December 17, 2007 and
amended and restated effective as of March 4, 2009.  The purpose of the Plan is to provide
employees of the Company with an opportunity to purchase Common Stock of the
Corporation through accumulated payroll deductions.  It is the intention of the Company to have
the Plan qualify as an “Employee Stock Purchase Plan” under Section 423 of
the Internal Revenue Code of 1986, as amended. 
The provisions of the Plan, accordingly, shall be construed so as to
extend and limit participation in a manner consistent with the requirements of
that section of the Code.

 

2.             Definitions.

 

(a)           “Board” shall mean the Board
of Directors of the Corporation.

 

(b)           “Code” shall mean the Internal
Revenue Code of 1986, as amended.

 

(c)           “Commission” shall mean the
Securities and Exchange Commission.

 

(d)           “Committee” shall mean the
Committee appointed by the Board to administer the Plan pursuant to Section 14.

 

(e)           “Common Stock” shall mean the
Common Stock of the Corporation.

 

(f)            “Company” shall mean the
Corporation and any of its Designated Subsidiaries.

 

(g)           “Compensation” shall have the
same meaning as given under the Guess?, Inc. 401(k) Plan and Trust or
such other definition as may be determined by the Committee, provided, however,
that amounts deferred by eligible employees pursuant to the terms of the Guess?, Inc.
Nonqualified Deferred Compensation Plan shall also be included as “Compensation”
for all purposes hereunder.

 

(h)           “Corporation” shall mean
Guess?, Inc., a Delaware corporation

 

(i)            “Designated Subsidiary” shall
mean any Subsidiary which has been designated by the Board from time to time in
its sole discretion as eligible to participate in the Plan.

 

(j)            “Employee” shall mean any
individual who is an Employee of the Company for tax purposes and whose
customary employment with the Company is at least twenty (20) hours per week
and more than five (5) months in any calendar year.  For purposes of the Plan, the employment
relationship shall be treated as continuing intact while the individual is on
sick leave or other leave of absence approved by the Company.  Where the period of leave exceeds ninety (90)
days and the individual’s right to reemployment is not guaranteed either by
statute or by contract, the employment relationship shall be deemed to have
terminated on the ninety-first (91st) day of such leave.

 

 

(k)           “Enrollment Date” shall mean
the first day of each Offering Period.

 

(l)            “Exchange Act” shall mean the
Securities Exchange Act of 1934, as amended.

 

(m)          “Exercise Date” shall mean the
last day of each Offering Period.

 

(n)           “Fair Market Value” shall
mean, on any given date, the value of Common Stock determined as follows:

 

(i)            if
the Common Stock is listed or admitted to trade on a national securities
exchange, the closing price of the shares of Common Stock on the Composite
Tape, as published in the Western Edition of The Wall Street Journal, of the
principal national securities exchange on which the Common Stock is so listed
or admitted to trade, on such date;

 

(ii)           if
the Common Stock is not listed or admitted to trade on a national securities
exchange, the last price for the Common Stock on such date, as furnished by the
National Association of Securities Dealers, Inc. (“NASD”) through the
NASDAQ National Market Reporting System or a similar organization if the NASD
is no longer reporting such information;

 

(iii)          if
the Common Stock is not listed or admitted to trade on a national securities
exchange and is not reported on the National Market Reporting System, the mean
between the bid and asked price for the Common Stock on such date, as furnished
by the NASD or a similar organization; or

 

(iv)          if
the Common Stock is not listed or admitted to trade on a national securities
exchange, is not reported on the National Market Reporting System and if bid
and asked prices for the stock are not furnished by the NASD or a similar
organization, the value as established by the Board at such time for purposes
of this Plan.

 

(o)           “Offering Period” shall mean a
period of approximately three (3) months, commencing on the last Monday of
the second fiscal month of each fiscal quarter of the Company and terminating
on the penultimate Friday of the second fiscal month of each immediately
following fiscal quarter of the Company. 
The duration of Offering Periods may be changed pursuant to Section 4
of this Plan.

 

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(p)           “Plan” shall mean this 2002
Employee Stock Purchase Plan.

 

(q)           “Purchase Price” shall mean an
amount equal to eighty-five percent (85%) of the Fair Market Value of a share
of Common Stock on the Enrollment Date or on the Exercise Date, whichever is
lower.

 

(r)            “Reserves” shall mean the
number of shares of Common Stock covered by each option under the Plan which
have not yet been exercised and the number of shares of Common Stock which have
been authorized for issuance under the Plan but not yet placed under option.

 

(s)           “Rule 16b-3”
means Rule 16b-3 as promulgated by the Commission under Section 16 of
the Exchange Act, as amended from time to time.

 

(t)            “Subsidiary” shall mean a
corporation, domestic or foreign, of which not less than fifty percent (50%) of
the voting shares are held by the Corporation or a Subsidiary, whether or not
such corporation now exists or is hereafter organized or acquired by the
Corporation or a Subsidiary.

 

(u)           “Trading Day” shall mean a day
on which national stock exchanges and the Nasdaq System are open for trading.

 

3.             Eligibility.

 

(a)           Any Employee who shall be employed by
the Company on a given Enrollment Date shall be eligible to participate in the
Plan for the corresponding Offering Period.

 

(b)           Any provisions of the Plan to the
contrary notwithstanding, no Employee shall be granted an option under the Plan
(i) to the extent that, immediately after the grant, such Employee (or any
other person whose stock would be attributed to such Employee pursuant to Section 424(d) of
the Code) would own capital stock of the Company and/or hold outstanding
options (granted under this Plan or otherwise) to purchase such stock
possessing five percent (5%) or more of the total combined voting power or
value of all classes of the capital stock of the Company or of any parent
corporation (if any) or any Subsidiary, or (ii) to the extent that his or
her rights to purchase stock under all employee stock purchase plans of the
Company and its parent corporation (if any) and its Subsidiaries qualified
under Section 423 of the Code accrues at a rate which exceeds Twenty-Five
Thousand Dollars ($25,000.00) worth of stock (determined at the Fair Market
Value of the shares at the time such option is granted) for each calendar year
in which such option is outstanding at any time.

 

4.             Offering Periods.  The Plan shall be implemented by consecutive
Offering Periods with a new Offering Period commencing on the last Monday of
the second fiscal month of each fiscal quarter of the Company and terminating
on the penultimate Friday of the second fiscal month of each immediately
following fiscal quarter of the Company, or on such other date as the Board
shall determine, and continuing thereafter until terminated in accordance with Section 20
hereof.  The Board shall have the power
to change the duration of the Offering Periods (not to exceed 27 months),
including the commencement dates thereof, with respect to future offerings
without stockholder approval if such change is announced at least five (5) days
prior to the beginning of the first Offering Period to be affected thereunder.

 

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5.             Participation.

 

(a)           An eligible Employee may become a
participant in the Plan by completing a subscription agreement authorizing
payroll deductions in the form of Exhibit A to this Plan.  Such subscription agreement must be filed
with the Company at least five (5) business days prior to the applicable
Enrollment Date (or such other date as the Committee may designate).

 

(b)           Payroll deductions for a participant
shall commence on the first payroll following the Enrollment Date and shall end
on the last payroll in the Offering Period to which such authorization is
applicable, unless sooner terminated by the participant as provided in Section 10
hereof.

 

(c)           For purposes of this Plan, if a
Designated Subsidiary ceases to be a Subsidiary, each person employed by that
Subsidiary will be deemed to have terminated employment for purposes of this
Plan and will no longer be an Employee unless the person continues as an
Employee in respect of another Company entity.

 

6.             Payroll Deductions.

 

(a)           At the time a participant files his
or her subscription agreement, he or she shall elect to have payroll deductions
made on each pay day during the Offering Period in an amount not less than one
percent (1%) and not in excess of fifteen percent (15%) of the Employee’s
Compensation during the Offering Period.

 

(b)           Subject to Section 6(a), all
payroll deductions made for a participant shall be credited to his or her
account under the Plan and shall be withheld in whole percentages.  A participant may not make any additional
payments into such account.

 

(c)           A participant may discontinue his or
her participation in the Plan as provided in Section 10 hereof.  A participant’s subscription agreement shall
remain in effect for successive Offering Periods unless terminated as provided
in Section 10 hereof or by filing a new subscription agreement with the
Company at least five (5) business days prior to the Enrollment Date of
the immediately following Offering Period (or such other date as the Committee
may designate).

 

(d)           Notwithstanding the foregoing, to the
extent necessary to comply with Section 7 hereof or Section 423(b)(8) of
the Code and Section 3(b) hereof, a participant’s payroll deductions
may be decreased to zero percent (0%) at any time during an Offering
Period.  Payroll deductions shall recommence
at the rate provided in such participant’s subscription agreement at the
beginning of the first Offering Period which is scheduled to end in the
following calendar year, unless terminated by the participant as provided in Section 10
hereof.

 

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(e)           At the time the option is exercised,
in whole or in part, or at the time some or all of the Company’s Common Stock
issued under the Plan is disposed of, the participant must make adequate
provision for the Company’s federal, state, or other tax withholding
obligations, if any, which arise upon the exercise of the option or the
disposition of the Common Stock.  At any
time, the Company may, but shall not be obligated to, withhold from the
participant’s compensation the amount necessary for the Company to meet
applicable withholding obligations, including any withholding required to make
available to the Company any tax deductions or benefits attributable to sale or
early disposition of Common Stock by the Employee.  Notwithstanding anything herein to the
contrary, with respect to any withholding obligation that may arise upon the
exercise of an option, the Company may, but shall not be obligated to, deduct
from a participant’s account balance as of an Exercise Date, before the
exercise of the participant’s option is given effect, the amount which the
Company reasonably determines to be required to withhold with respect to such
exercise.  In such event, the maximum
number of whole shares subject to the option (subject to the other limits set
forth in the Plan) shall be purchased at the Purchase Price with the balance of
the participant’s account (after reduction for the tax withholding amount).

 

7.             Grant of Option.  On the Enrollment Date of each Offering
Period, each eligible Employee participating in such Offering Period shall be
granted an option to purchase on the Exercise Date of such Offering Period (at
the applicable Purchase Price) up to a number of shares of the Company’s Common
Stock determined by dividing such Employee’s payroll deductions accumulated
prior to such Exercise Date and retained in the Participant’s account as of the
Exercise Date by the applicable Purchase Price; provided that, in no event,
shall an Employee be permitted to purchase during each Offering Period more
than 200,000 shares (subject to any adjustment pursuant to Section 19),
and provided further that such purchase shall be subject to the limitations set
forth in Section 3(b) and 13 hereof. 
Exercise of the option shall occur as provided in Section 8 hereof,
unless the participant has withdrawn pursuant to Section 10 hereof.  The Option shall expire on the last day of
the Offering Period.

 

8.             Exercise of Option.  Unless a participant withdraws from the Plan
as provided in Section 10 hereof, his or her option for the purchase of
shares shall be exercised automatically on the Exercise Date, and the maximum
number of full shares subject to the option shall be purchased for such
participant at the applicable Purchase Price with the accumulated payroll
deductions in his or her account.  No
fractional shares shall be purchased; any payroll deductions accumulated in a
participant’s account which are not sufficient to purchase a full share shall
be retained in the participant’s account for the subsequent Offering Period,
subject to earlier withdrawal by the participant as provided in Section 10
hereof.  Any other monies left over in a
participant’s account after the Exercise Date shall be returned to the
participant unless the participant requests such funds to be rolled over to the
next offering period.  During a
participant’s lifetime, a participant’s option to purchase shares hereunder is
exercisable only by him or her.

 

9.             Delivery.  As promptly as practicable after each
Exercise Date on which a purchase of shares occurs, the Company shall, in its
discretion, either: (a) arrange the delivery to the participant or to a
record keeping service of a certificate, as appropriate, or (b) issue
shares in book entry form to the participant or his or her designated broker,
registered in the name of such participant or broker, in each case,
representing the shares purchased upon exercise of his or her option.

 

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10.           Withdrawal.

 

(a)           A participant may withdraw all but
not less than all the payroll deductions credited to his or her account during
an Offering Period and not yet used to exercise his or her option under the
Plan at any time by giving written notice to the Company in the form of Exhibit B
to this Plan.  A withdrawal election
pursuant to this Section 10(a) with respect to an Offering Period
shall be effective if it is received by the Company no later than two (2) business
days prior to the Exercise Date of that Offering Period.  All of the participant’s payroll deductions
credited to his or her account shall be paid to such participant promptly after
receipt of notice of withdrawal and such participant’s option for the Offering
Period shall be automatically terminated, and no further payroll deductions for
the purchase of shares shall be made for such Offering Period.  If a participant withdraws from an Offering
Period, payroll deductions shall not resume at the beginning of the succeeding
Offering Period unless the participant delivers to the Company a new
subscription agreement.  A participant
may also withdraw from participation in a succeeding Offering Period by giving
written notice to the Company in the form of Exhibit B, provided
that the notice of withdrawal is received by the Company no later than one (1) business
day prior to the Enrollment Date of the succeeding Offering Period (or such
other date as the Committee may designate).

 

(b)           A participant’s withdrawal from an
Offering Period shall not have any effect upon his or her eligibility to
participate in any similar plan which may hereafter be adopted by the Company
or in succeeding Offering Periods which commence after the termination of the
Offering Period from which the participant withdraws.

 

11.           Termination of Employment.  Upon a participant’s ceasing to be an
Employee for any reason, he or she shall be deemed to have elected to exercise
his or her option at the next Exercise Date unless the participant gives notice
to the Company at least two (2) business days prior to the applicable Exercise
Date (or such other date as the Committee may designate) in the form of Exhibit C
to this Plan.  Upon the participant’s
timely filing of such notice, the participant shall be withdrawn from the Plan
and the payroll deductions credited to such participant’s account during the
Offering Period but not yet used to exercise the option shall be returned to
such participant or, in the case of his or her death, to the person or persons
entitled thereto under Section 15 hereof, and such participant’s option shall
be automatically terminated.  The
preceding sentence notwithstanding, a participant who receives payment in lieu
of notice of termination of employment shall be treated as continuing to be an
Employee for the participant’s customary number of hours per week of employment
during the period in which the participant is subject to such payment in lieu
of notice.

 

12.           Interest.  No interest shall accrue on the payroll
deductions of a participant in the Plan.

 

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13.           Stock.

 

(a)           The maximum number of shares of the
Common Stock which shall be made available for sale under the Plan shall be
four million (4,000,000) shares(1), subject to adjustment upon changes in
capitalization of the Company as provided in Section 19 hereof.  If, on a given Exercise Date, the number of
shares with respect to which options are to be exercised exceeds the number of
shares then available under the Plan, the Company shall make a pro rata
allocation of the shares remaining available for purchase in as uniform a
manner as shall be practicable and as it shall determine to be equitable.

 

(b)           The participant shall have no
interest or voting right in shares covered by his option until such option has
been exercised.

 

(c)           Shares to be delivered to a
participant under the Plan shall be registered in the name of the participant
(or the participant and his or her spouse) or his or her designated broker.

 

14.                                 Administration.

 

(a)           The
Board shall appoint the Committee, which shall be composed of not less than two
members of the Board.  Each member of the
Committee, in respect of any transaction at a time when an affected participant
may be subject to Section 16 of the Exchange Act, shall be a “non-employee
director” within the meaning of Rule 16b-3.  The Board may, at any time, increase or
decrease the number of members of the Committee, may remove from membership on
the Committee all or any portion of its members, and may appoint such person or
persons as it desires to fill any vacancy existing on the Committee, whether
caused by removal, resignation, or otherwise. 
The Board may also, at any time, assume or change the administration of
this Plan.

 

(b)           The
Committee shall supervise and administer this Plan and shall have full power
and discretion to adopt, amend and rescind any rules deemed desirable and
appropriate for the administration of this Plan and not inconsistent with the
terms of this Plan, and to make all other determinations necessary or advisable
for the administration of this Plan.  The
Committee shall act by majority vote or by unanimous written consent.  No member of the Committee shall be entitled
to act on or decide any matter relating solely to himself or herself or solely
to any of his or her rights or benefits under this Plan.  The Committee shall have full power and
discretionary authority to construe and interpret the terms and conditions of
this Plan, which construction or interpretation shall be final and binding on
all parties including the Company, participants and beneficiaries.  The Committee may delegate ministerial
non-discretionary functions to third parties, including individuals who are
officers or employees of the Company.

 

(1) The
maximum number of shares available under this Plan consists of the 2,000,000
shares of Common Stock that were initially approved for issuance under the Plan
upon its original adoption by the Board on January 4, 2002 plus an
additional 2,000,000 shares of Common Stock as were necessary to reflect the
Company’s two-for-one stock split effected in the form of a 100% stock dividend
as approved by the Board on February 12, 2007 and distributed March 12,
2007.

 

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(c)           Subject only to compliance with the
express provisions hereof, the Board and Committee may act in their absolute
discretion in matters within their authority related to this Plan.  Any action taken by, or inaction of, the
Company, any Designated Subsidiary, the Board or the Committee relating or pursuant
to this Plan shall be within the absolute discretion of that entity or body and
will be conclusive and binding upon all persons.  In making any determination or in taking or
not taking any action under this Plan, the Board or Committee, as the case may
be, may obtain and may rely on the advice of experts, including professional
advisors to the Company.  No member of
the Board or Committee, or officer or agent of the Company, will be liable for
any action, omission or decision under the Plan taken, made or omitted in good
faith.

 

15.           Designation of Beneficiary.

 

(a)           A participant may file a written
designation of a beneficiary who is to receive any shares and cash, if any,
from the participant’s account under the Plan in the event of such participant’s
death subsequent to an Exercise Date on which the option is exercised but prior
to delivery to such participant of such shares and cash.  In addition, a participant may file a written
designation of a beneficiary who is to receive any cash from the participant’s
account under the Plan in the event of such participant’s death prior to
exercise of the option.  If a participant
is married and the designated beneficiary is not the spouse, spousal consent
shall be required for such designation to be effective.

 

(b)           Such designation of beneficiary may
be changed by the participant at any time by written notice.  In the event of the death of a participant
and in the absence of a beneficiary validly designated under the Plan who is
living at the time of such participant’s death, the Company shall deliver such
shares and/or cash to the executor or administrator of the estate of the
participant, or if no such executor or administrator has been appointed (to the
knowledge of the Company), the Company, in it discretion, may deliver such
shares and/or cash to the spouse or to any one or more dependents or relatives
of the participant, if no spouse, dependent or relative is known to the
Company, then to such other person as the Company may designate.

 

16.           Transfer Restrictions.

 

(a)           Neither payroll deductions credited
to a participant’s account nor any rights with regard to the exercise of an
option or to receive shares under the Plan may be assigned, transferred,
pledged or otherwise disposed of in any way (other than by will, the laws of
descent and distribution or as provided in Section 15 hereof) by the
participant.  Any such attempt at
assignment, transfer, pledge or other disposition shall be without effect,
except that the Company may treat such act as an election to withdraw funds
from an Offering Period in accordance with Section 10 hereof.

 

(b)           Unless the Board or the Committee
determines otherwise prior to the start of any Offering Period, the shares of
Common Stock purchased by a participant on each Exercise Date that occurs after
April 1, 2009 must be held and not sold by the participant for a minimum
period of six (6) months following the applicable Exercise Date.  Accordingly, the participant shall not sell,
make any short sale of, loan, hypothecate, assign, transfer, pledge, grant any
option for the purchase of, or otherwise dispose or transfer for value or
otherwise agree to engage in any of the foregoing transactions with respect to
any shares purchased by the participant under the Plan until those shares have
been held for at least a six (6) month period measured from the applicable
Exercise Date.  (By way of example,
shares purchased on an Exercise Date of June 26 may not be sold or
otherwise transferred by the participant until at least December 26 of the
same year.)  This transfer restriction
shall hereafter be referred to as the “Holding Period Requirement.”  Notwithstanding the foregoing, the Board or
Committee may at any time elect to reduce or waive the Holding Period
Requirement.

 

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(c)           A participant shall have, with
respect to purchased shares that are subject to the Holding Period Requirement,
all of the rights of a shareholder of the Corporation, including the right to
vote the shares and the right to receive any cash or other dividends with respect
to the shares.  Any new, substituted or
additional securities which are, by reason of any stock split, stock dividend,
recapitalization, combination or reclassification of shares, exchange of shares
or other change affecting the outstanding Common Stock as a class without the
Corporation’s receipt of consideration, distributed with respect to any
purchased shares shall be subject to the same Holding Period Requirement, if
any, applicable to those shares.

 

(d)           In order to enforce the Holding
Period Requirement, the Corporation may impose stop-transfer instructions or
take such other actions it deems necessary or advisable with respect to the
purchased shares until the end of the applicable six (6) month period.

 

(e)           Upon a participant’s ceasing to be an
Employee for any reason, any shares held by such participant that are then
subject to a Holding Period Requirement or that are thereafter purchased
pursuant to Section 11 hereof, shall no longer be subject to the Holding
Period Requirement.

 

17.           Use of Funds.  All payroll deductions received or held by
the Company under the Plan may be used by the Company for any corporate
purpose, and the Company shall not be obligated to segregate such payroll
deductions.

 

18.           Reports.  Individual accounts shall be maintained for
each participant in the Plan.  Statements
of account shall be given to participating Employees as soon as
administratively practicable following each Exercise Date, which statements
shall set forth the amounts of payroll deductions, the Purchase Price, the
number of shares purchased and the remaining cash balance, if any.

 

19.                                 Adjustments Upon Changes in
Capitalization, Dissolution, Liquidation, Merger or Asset Sale.

 

(a)           Changes in Capitalization.  Subject to any required action by the
stockholders of the Company, the Reserves, the maximum number of shares each
participant may purchase per Offering Period (pursuant to Section 7), as
well as the price per share and the number of shares of Common Stock covered by
each option under the Plan which has not yet been exercised shall be
proportionately adjusted for any increase or decrease in the number of issued
shares of Common Stock resulting from a stock split, reverse stock split, stock
dividend, combination or reclassification of the Common Stock, or any other
increase or decrease in the number of shares of Common Stock effected without
receipt of consideration by the Company; provided, however, that conversion of
any convertible securities of Company shall not be deemed to have been “effected
without receipt of consideration.”  Such
adjustments shall be made by the Board, whose determination in that respect
shall be final, binding and conclusive. 
Except as expressly provided herein, no issuance by the Company of
shares of stock of any class, or securities convertible into shares of stock of
any class, shall affect, and no adjustment by reason thereof shall be made with
respect to, the number or price of shares of Common Stock subject to an option.

 

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(b)           Dissolution or Liquidation.  In the event of the proposed dissolution or
liquidation of the Company, the Offering Period then in progress shall be
shortened by setting a new Exercise Date (the “New Exercise Date”), and shall
terminate immediately prior to the consummation of such proposed dissolution or
liquidation, unless provided otherwise by the Board.  The new Board shall notify each participant
in writing, at least ten (10) business days prior to the New Exercise
Date, that the Exercise Date for the participant’s option has been changed to
the New Exercise Date and that that participant’s option shall be exercised
automatically on the New Exercise Date, unless prior to such date the
participant has withdrawn from the Offering Period as provided in Section 10
hereof.

 

(c)           Merger or Asset Sale.  In the event of a proposed sale of all or
substantially all of the assets of the Company, or the merger of the Company
with or into another corporation, each outstanding option shall be assumed or
an equivalent option substituted by the successor corporation or a Parent or
Subsidiary of the successor corporation. 
In the event that the successor corporation refuses to assume or
substitute for the option, the Offering Period then in progress shall be
shortened by setting a New Exercise Date and shall end on the New Exercise
Date.  The New Exercise Date shall be
before the date of the Company’s proposed sale or merger.  The Board shall notify each participant in
writing, at least ten (10) business days prior to the New Exercise Date,
that the Exercise Date for the participant’s option has been changed to the New
Exercise Date and that the participant’s option shall be exercised
automatically on the New Exercise Date, unless prior to such date the
participant has withdrawn from the Offering Period as provided in Section 10
hereof.

 

20.           Amendment or Termination.

 

(a)           The Board may at any time and for any
reason terminate, suspend or amend the Plan. 
Except as provided in Section 19 hereof, no such termination can
affect options previously granted, provided that an Offering Period may be
terminated by the Board of Directors on any Exercise Date if the Board
determines that the termination of the Plan is in the best interests of the
Company and its stockholders.  Except as
provided in Section 19 hereof, no amendment may make any change in any
option theretofore granted which adversely affects the rights of any
participant.  To the extent necessary to
comply with Section 423 of the Code (or any successor rule or
provision or any other applicable law, regulation or stock exchange rule), the
Company shall obtain stockholder approval in such a manner and to such a degree
as required.

 

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(b)                                 Without
stockholder consent and without regard to whether any participant rights may be
considered to have been “adversely affected,” the Board (or its committee)
shall be entitled to change the Offering Period, establish the exchange ratio
applicable to amounts withheld in a currency other than U.S. dollars, permit
payroll withholding in excess of the amount designated by a participant in
order to adjust for delays or mistakes in the Company’s processing of properly
completed withholding elections, establish reasonable waiting and adjustment
period and/or accounting and crediting procedures to ensure that amounts
applied toward the purchase of Common Stock for each participant properly
correspond with amounts withheld from the participant’s Compensation, and
establish such other limitations or procedures as the Board (or its committee)
determines in its sole discretion advisable which are consistent with the Plan.

 

21.                                 Notices.  All notices or other communications by a
participant to the Company under or in connection with the Plan shall be deemed
to have been duly given when received in the form specified by the Company at
the location, or by the person, designated by the Company for the receipt
thereof.

 

22.                                 Conditions Upon
Issuance of Shares.  Shares shall
not be issued with respect to an option unless the exercise of such option and
the issuance and delivery of such shares pursuant thereto shall comply with all
applicable provisions of law, domestic or foreign, including, without
limitation, the Securities Act of 1933, as amended, the Exchange Act, the rules and
regulations promulgated thereunder, and the requirements of any stock exchange
upon which the shares may then be listed, and shall be further subject to the
approval of counsel for the Company with respect to such compliance.

 

As
a condition to the exercise of an option, the Company may require the person
exercising such option to represent and warrant at the time of any such
exercise that the shares are being purchased only for investment and without
any present intention to sell or distribute such shares if, in the opinion of
counsel for the Company, such a representation is required by any of the
aforementioned applicable provisions of law.

 

23.                                 Term of Plan.

 

(a)                                  The Plan shall
become effective upon its adoption by the Board.  No new Offering Periods shall commence on
after the day before the tenth (10th) anniversary of the effective date of the Plan and
the Plan shall terminate as of the Exercise Date on or immediately following
such date unless sooner terminated under Section 20 hereof.

 

(b)                                 Notwithstanding
anything else contained herein to the contrary, the effectiveness of the Plan
is subject to the approval of this Plan by the stockholders of the Company
within twelve (12) months after the effective date of the Plan.

 

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24.                                 Employees’
Rights.

 

(a)                                  Nothing in this
Plan (or in any other documents related to this Plan) will confer upon any
Employee or participant any right to continue in the employ or other service of
the Company, constitute any contract or agreement of employment or other
service or effect an employee’s status as an employee at will, nor shall
interfere in any way with the right of the Company to change such person’s
compensation or other benefits or to terminate his or her employment or other
service with or without cause.  Nothing
contained in this Section 24(a), however, is intended to adversely affect
any express independent right of any such person under a separate employment or
service contract other than a subscription agreement.

 

(b)                                 No participant
or other person will have any right, title or interest in any fund or in any
specific asset (including shares) of the Company by reason of any option
hereunder.  Neither the provisions of
this Plan (or of any related documents), nor the creation or adoption of this
Plan, nor any action taken pursuant to the provisions of this Plan will create,
or be construed to create, a trust of any kind or a fiduciary relationship
between the Company and any participant or other person.  To the extent that a participant or other
person acquires a right to receive payment pursuant to this Plan, such right
will be no greater than the right of any unsecured general creditor of the
Corporation.  No special or separate
reserve, fund or deposit will be made to assure any such payment.

 

(c)                                  A participant
will not be entitled to any privilege of stock ownership as to any shares not
actually delivered to the participant pursuant to Section 9.  No adjustment will be made for dividends or
other rights as a stockholder for which a record date is prior to such date of
delivery.

 

25.                                 Miscellaneous.

 

(a)                                  This Plan, the
options, and related documents shall be governed by, and construed in
accordance with, the laws of the State of Delaware.  If any provision shall be held by a court of
competent jurisdiction to be invalid and unenforceable, the remaining
provisions of this Plan shall continue in effect.

 

(b)                                 Captions and
headings are given to the sections of this Plan solely as a convenience to
facilitate reference.  Such captions and
headings shall not be deemed in any way material or relevant to the
construction of interpretation of this Plan or any provision hereof.

 

(c)                                  The adoption of this Plan shall not affect
any other Company compensation or incentive plans in effect.  Nothing in this Plan will limit or be deemed
to limit the authority of the Board or Committee (i) to establish any
other forms of incentives or compensation for employees of the Company (with or
without reference to the Common Stock), or (ii) to grant or assume options
(outside the scope of and in addition to those contemplated by this Plan) in
connection with any proper corporate purpose; to the extent consistent with any
other plan or authority.

 

(d)                                 Benefits
received by a participant under an option granted pursuant to this Plan shall
not be deemed a part of the participant’s compensation for purposes of the
determination of benefits under any other employee welfare or benefit plans or
arrangements, if any, provided by the Company, except where the Committee or
the Board expressly otherwise provides or authorizes in writing.

 

12

 

26.                                 Notice of Sale.  Any person who has acquired shares under this
Plan shall give prompt written notice to the Company of the sale or other
transfer of the shares if such sale or transfer occurs (i) within the two (2) year
period after the Enrollment Date (date the option is granted) of the Offering
Period with respect to which such shares were acquired or (ii) within the
twelve (12) month period after the Exercise Date of the Offering Period with
respect to with such shares were acquired.

 

******

 

Adoption

Adopted
by the Board of Directors on January 4, 2002

Approved
by the stockholders on May 13, 2002

First
Amendment Approved by the Board of Directors on December 17, 2002

Amended
and Restated by the Board of Directors Effective March 4, 2009

 

13

 

EXHIBIT A

 

Subscription Agreement 

 

 

GUESS?, INC.

 

EMPLOYEE STOCK
PURCHASE PLAN

 

SUBSCRIPTION AGREEMENT

 

THIS FORM MUST BE RECEIVED
IN THE LEGAL DEPARTMENT ON OR BEFORE THE DEADLINE!

 

SEE ESPP CALENDAR FOR
DEADLINES.

 

You can send this form by
interoffice mail to the Legal Department (ESPP) or by fax to (213) 765-0911.

 

	
  1.  Type
  of Subscription

  	
   

  	
  o   Original
  Application OR Re-Enrollment

  o   Change
  in Payroll Deduction Rate

  o   Change
  in Beneficiary(ies)

  
	
   

  	
   

  	
   

  
	
  2.  Name

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  3.  Employee
  ID Number

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  4.  Home
  Address

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  5.  Phone
  Number

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  6.  E-Mail
  Address

  

  Please make sure to include your e-mail address.
  Confirmations of receipt of this form and other communications regarding the
  Plan will be sent by e-mail only!

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  7.  Contribution
  Amount  

  

  Enter a percentage of your compensation per
  paycheck (min. 1%; max 15%).

  	
   

  	
                                                                                             %

  
	
   

  	
   

  	
   

  
	
  8.  Beneficiary
  Name, Relationship and Address  

  

  In the event of my death, I
  hereby designate the following as my beneficiary(ies) to receive all payments
  and shares due to me under the Plan:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  9.  *Spouse’s
  Signature (if beneficiary is other)

  

  I hereby consent to the designation made by my
  spouse to have any amounts available and/or payable under the Plan in the
  event of his or her death paid to the persons listed on this form in the 

  	
   

  	
   

  
	
  manner and circumstances described in this form.

  	
   

  	
  (Signature
  of Spouse)

  
	
   

  	
   

  	
   

  
	
  10.  Date

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  11.  Signature

  

  I have received a prospectus for the Employee Stock
  Purchase Plan and I have read and agree to all of the “Employee Stock
  Purchase Plan Terms and Conditions” on the reverse including 

  	
   

  	
   

  
	
  any terms and conditions in the
  Plan or any prospectus.

  	
   

  	
  (Signature)

  

 

*All items
are REQUIRED except for Item 8.  For Item
9, if you are married and you name someone other than your spouse as your
beneficiary, your spouse must consent to such designation by signing the
Subscription Agreement in the space indicated above.

 

Enrollment Form

 

1

 

Employee
Stock Purchase Plan Terms and Conditions

 

1.                                       I hereby elect to participate in the
GUESS?, INC. Employee Stock Purchase Plan (the “Plan”) for the next Offering
Period, and subscribe to purchase shares of the Company’s Common Stock in
accordance with this Subscription Agreement and the Plan.

 

2.                                       I elect to have contributions in the
amount of the percentage indicated on this Subscription Agreement (per pay
check) of my Compensation, as defined in the Plan, applied to this
purchase.  I understand that this amount
must not be less than 1% and not more than 15% of my Compensation during the
Offering Period.  (Please note that no
fractional percentages are permitted).

 

3.                                       I hereby authorize payroll deductions
from each paycheck during the Offering Period at the rate stated in Item 7
of this Subscription Agreement.  I
understand that all payroll deductions made by me shall be credited to my
account under the Plan and that I may not make any additional payments into
such account.  I understand that all
payments made by me shall be accumulated for the purchase of shares of Common
Stock at the applicable purchase price determined in accordance with the
Plan.  I further understand that, except
as otherwise set forth in the Plan, shares will be purchased for me
automatically on the Exercise Date of each Offering Period unless I otherwise
withdraw from the Plan by giving written notice to the Company’s Legal
Department no later than two (2) business days before an Exercise Date for
such purpose.  I understand that I will
not receive any interest on my accumulated contributions.

 

4.                                       I acknowledge that, unless I discontinue
my participation in the Plan by filing a notice of withdrawal with the Company
as provided in Section 10 of the Plan, my election will continue to be
effective for each successive Offering Period. 
I understand that I may withdraw my participation in the Plan at any
time prior to an Exercise Date by giving written notice to the Company’s Legal
Department no later than two (2) business days before such Exercise Date
for such purposes.  I also understand
that I may not increase or decrease the rate of my contributions during any
Offering Period; however, I may change the rate of contributions for future
Offering Periods by filing a new Subscription Agreement with the Company’s
Legal Department no later than five (5) business days prior to the next
Offering Period, and any such change will be effective as of the Enrollment
Date of the next Offering Period.

 

5.                                       I have received a copy of the Company’s
most recent Prospectus for the Plan and a copy of the complete “Guess?, Inc.
2002 Employee Stock Purchase Plan.”  I
understand that my participation in the Plan is in all respects subject to the
terms of the Plan.

 

6.                                       I understand that all Shares purchased
for me under the Plan will be deposited into an account established by me at a
brokerage chosen by the Company.  I
understand that if I wish to receive a physical share certificate or sell my
shares, I may be required to pay a fee to the brokerage.

 

7.                                       I understand that I will not be permitted
to sell or otherwise dispose of any shares acquired by me pursuant to the Plan
until I have held such shares for a period of six (6) months following the
applicable Exercise Date.

 

8.                                       I understand that if I dispose of any
shares acquired by me pursuant to the Plan (i) within two (2) years
after the Enrollment Date (the first day of the Offering Period with respect to
which I purchased such shares) or (ii) within one (1) year after the
Exercise Date of the Offering Period with respect to which I acquired such
shares, I will be treated for federal income tax purposes as having received
ordinary compensation income at the time of such disposition in an amount equal
to the excess of the fair market value of the shares on the Exercise Date over
the price which I paid for the shares, regardless of whether I disposed of the
shares at a price less than their fair market value at the Exercise Date.  The remainder of the gain or loss, if any,
recognized on such disposition will be treated as capital gain or loss.  I hereby agree to notify the Company in
writing within 30 days after the date of any such disposition, and I will make
adequate provision for federal, state or other tax withholding obligations, if
any, which arise upon the disposition of the Common Stock.  The Company may, but will not be obligated
to, withhold from my compensation the amount necessary to meet any applicable
withholding obligation including any withholding necessary to make available to
the Company any tax deductions or benefits attributable to the sale or early
disposition of Common Stock by me.

 

9.                                       If I dispose of such shares at any time
after expiration of the 2-year and 1-year holding periods, I understand that I
will be treated for federal income tax purposes as having received compensation
income only to the extent of an amount equal to the lesser of (1) the
excess of the fair market value of the shares at the time of such disposition
over the purchase price which I paid for the shares under the option, or (2) the
amount by which the fair market value of the shares on the Enrollment Date
exceeded the purchase price that I paid for the shares (calculated as though
the option was exercised on the Enrollment Date of the Offering Period).  The remainder of the gain or loss, if any,
recognized on such disposition will be treated as capital gain or loss.  I understand that this tax summary is only
a summary, is not a complete description of the tax consequences relating to
the disposition of shares that may be acquired under the Plan and is subject to
change.  I further understand that I
should consult a tax advisor concerning the tax implications of the purchase
and sale of stock under the Plan.

 

10.                                 I hereby agree to be bound by the terms
of the Plan.  The effectiveness of this
Subscription Agreement is dependent upon my eligibility to participate in the
Plan.

 

2

 

EXHIBIT B

 

Notice of Withdrawal

 

 

GUESS?, INC.

 

EMPLOYEE STOCK
PURCHASE PLAN

 

NOTICE OF WITHDRAWAL

 

THIS FORM MUST BE RECEIVED
IN THE LEGAL DEPARTMENT ON OR BEFORE THE DEADLINE!

 

SEE ESPP CALENDAR FOR
DEADLINES.

 

You can send this form by
interoffice mail to the Legal Department (ESPP) or by fax to (213) 765-0911.

 

	
  1.  Type
  of Withdrawal  (Select One)

  

  If you select “Current Offering Period” you will
  receive a refund of any contributions (without interest) and no stock will be
  purchased for you at the next purchase date. If you select “Next Offering
  Period” your current contributions will be used to purchase stock at the next
  purchase date, but you will be withdrawn for the next offering period

  	
   

  	
  o   Current
  Offering Period

  

  o   Next
  Offering Period

  
	
   

  	
   

  	
   

  
	
  2.  Name

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  3.  Employee
  ID Number

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  4.  E-Mail
  Address

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  5.  Home
  Address

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  6.  Home
  Telephone

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  7.  Date

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  8.  Signature  

  

  I have read and agree to all of the “Terms and
  Conditions of Withdrawal” below including any terms and conditions in the 

  	
   

  	
   

  
	
  Plan or any prospectus.

  	
   

  	
  (Signature)

  

 

All items
are REQUIRED. 

 

Terms
and Conditions of Withdrawal

 

I hereby elect to
withdraw my participation in the Guess?, Inc. Employee Stock Purchase Plan
(the “Plan”) for the Offering Period selected above.

 

This withdrawal covers
all contributions credited to my account and is effective upon the Company’s
receipt of this Notice of Withdrawal.

 

I understand that, in
order for this Notice of Withdrawal to be effective for the current
Offering Period, I must submit this form to the Company’s Legal Department no
later than two (2) business days before the Exercise Date of the current
Offering Period.  I understand that a
Notice of Withdrawal form submitted after the second (2nd) business day before the end of the Offering Period
but before the end of the Offering Period will be null and void unless I have
selected “Next Offering Period” above.

 

I understand that all
contributions credited to my account will be paid to me within ten (10) business
days of receipt by the Company of this Notice of Withdrawal and that my option
for the applicable Offering Period will automatically terminate, and that no
further contributions for the purchase of shares can be made by me during the
applicable Offering Period.

 

I understand and agree that I will be eligible to participate in
succeeding Offering Periods only by delivering to the Company a new completed
and signed Subscription Agreement.

 

Withdrawal Form – 9/1/08

 

1

 

EXHIBIT C

 

Notice of Withdrawal Upon Termination of Employment

 

 

GUESS?, INC.

 

EMPLOYEE STOCK PURCHASE PLAN

 

NOTICE
OF WITHDRAWAL UPON TERMINATION OF EMPLOYMENT

 

THIS FORM MUST BE RECEIVED
IN THE LEGAL DEPARTMENT ON OR BEFORE THE DEADLINE!

 

SEE ESPP CALENDAR FOR
DEADLINES.

 

You can send this form by
interoffice mail to the Legal Department (ESPP) or by fax to (213) 765-0911.

 

	
  1.  Name

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  2.  Employee
  ID Number

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  3.  E-Mail
  Address

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  4.  Home
  Address

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  5.  Home
  Telephone

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  6.  Date
  

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  7.  Signature

  

  I have read and agree to all of the “Terms and
  Conditions of Withdrawal” below including any terms and conditions in the 

  	
   

  	
   

  
	
  Plan or any prospectus.

  	
   

  	
  (Signature)

  

 

All items
are REQUIRED. 

 

Terms
and Conditions of Withdrawal

 

I hereby elect to
withdraw my participation in the Guess?, Inc. Employee Stock Purchase Plan
(the “Plan”) for the current Offering Period.

 

This withdrawal covers
all contributions credited to my account as of the date of my termination of
employment with the Company and is effective when received by the Company.

 

I understand that if I do
not submit this form to the Company’s Legal Department at least two (2) business
days prior to the Exercise Date of the current Offering Period, any
contributions I have made during the current Offering Period through and
including my last date of employment with the Company will be used to purchase
stock upon the Exercise Date of the current Offering Period in accordance with
the Plan.  By submitting this form to the
Company, I am electing to withdraw from the Plan and receive a refund of my
contributions.

 

I understand that all
contributions credited to my account will be paid to me within ten (10) business
days of receipt by the Company of this Notice of Withdrawal Upon Termination of
Employment and that my option for the current Offering Period will automatically
terminate, and that no further contributions for the purchase of shares can be
made by me during the Offering Period.

 

I further understand and agree that I shall no longer be eligible to
participate in succeeding Offering Periods as a result of my termination of
employment with the Company and its Designated Subsidiaries.

 

Termination Withdrawal Form

 

1Exhibit 10.4

 

SEPARATION AGREEMENT AND GENERAL RELEASE OF ALL CLAIMS

 

This Separation Agreement
and General Release of all Claims (hereinafter “Agreement”), dated as of January 30,
2008, is made and entered into between GUESS?, INC., a Delaware
corporation (hereinafter “GUESS”), and Stephen Pearson (hereinafter “EMPLOYEE”),
and is made in light of the following:

 

EMPLOYEE is employed by
GUESS as the Executive Vice President/Chief Supply Chain Officer. EMPLOYEE’s
employment with GUESS shall terminate on February 4, 2008 (the “Termination
Date”). The parties hereto desire to resolve all pending issues and/or claims
between them, regarding the employment of EMPLOYEE, the performance of EMPLOYEE’s
duties as an employee of GUESS, and the termination of EMPLOYEE’s employment
with GUESS.

 

The parties hereto
acknowledge that each has denied, and continues to deny, any claims existing or
asserted by the other, but that GUESS and EMPLOYEE, desire to bring matters
relating to EMPLOYEE’s employment with GUESS to a conclusion. Therefore, the
parties make this Agreement, and expressly recognize that the making of this
Agreement does not in any way constitute an admission of wrongdoing or
liability on the part of either party.

 

1.                                       EMPLOYEE
represents and warrants that EMPLOYEE (a) has not filed any complaints,
lawsuits, charges and/or other claims against GUESS, or any of the Releasees
identified in Paragraph 4 below, with any court or government agency or
entity based upon or arising out of or in any way related to EMPLOYEE’s
employment, the termination of EMPLOYEE’s employment, or any acts or events
which occurred prior to EMPLOYEE’s execution of this Agreement; (b) has
not assigned any such action, cause of action, claim, judgment, obligation,
damage or liability or authorized any other person or entity to assert such on
EMPLOYEE’s behalf; and (c) has not at any time sustained physical or
mental injury arising out of EMPLOYEE’s employment, or the termination thereof,
with GUESS through the date of execution of this Agreement.

 

2.                                       In
consideration of covenants undertaken and releases given herein by EMPLOYEE,
GUESS agrees to: (a) pay EMPLOYEE the sum of Four Hundred Sixty Five
Thousand Dollars ($465,000), less all legally required withholdings for taxes
and other related obligations, which sum represents a twelve (12) month
severance to be paid in equal installments on regularly scheduled paydays
commencing within two weeks after receipt by GUESS of this Agreement executed
by EMPLOYEE, subject to the terms set forth in this paragraph 2; and (b) cost
share COBRA premiums for medical and dental benefits for EMPLOYEE and maintain
EMPLOYEE’s participation in Exec-U-Care, both in the same amount and on the
same terms and conditions as existed on EMPLOYEE’s Termination Date from February 4,
2008 through January 31, 2009; however, should EMPLOYEE find and begin
employment, or enter into a consulting or other compensatory arrangement prior
to February 4, 2009, at a salary equal to or greater than EMPLOYEE’s
salary at GUESS as of February 4, 2008, payments under this
paragraph 2 shall be discontinued. If EMPLOYEE accepts and begins
employment or enters a consulting or other compensatory arrangement prior to January 23,
2009, at a salary lower than the above referenced GUESS salary, GUESS will
reimburse the difference in compensation from the date of such employment.

 

EMPLOYEE acknowledges that
GUESS is not obligated to provide certain of the above-referenced consideration
to EMPLOYEE under its normal policies and procedures. EMPLOYEE also acknowledges
that no other monetary payments shall be made to EMPLOYEE in return for
entering into this Agreement and no other monies are owed to EMPLOYEE by GUESS
or by any of the Releasees identified in Paragraph 4 below.

 

3.                                       In
consideration of the covenants undertaken herein by GUESS, EMPLOYEE agrees: (a) to
continue to comply with Sections 7(b) through (e) of the
Employment Agreement by and between GUESS and the EMPLOYEE, dated January 31,
2006 (the “Employment Agreement”), concerning non-solicitation of GUESS
customers, suppliers and employees through February 4, 2009; (b) to
continue to comply with the terms of GUESS’s Confidentiality Agreement which is
attached hereto as Exhibit A
and made a part hereof (“Confidentiality Agreement”); (c) that GUESS may
enforce the confidentiality provisions of the Confidentiality Agreement in
connection with EMPLOYEE’s conduct as if EMPLOYEE were still an employee of
GUESS, to the extent permitted by law; (d) to return any and all GUESS
property to GUESS forthwith; and (e) that EMPLOYEE will remain available
for questions concerning EMPLOYEE’s position if requested by GUESS. EMPLOYEE
agrees that the provisions of this paragraph are necessary and reasonable.

 

EMPLOYEE agrees to notify
GUESS’s Legal Department in the event that EMPLOYEE is contacted by anyone in
connection with either GUESS or any officers, directors or employees of GUESS.
In particular, EMPLOYEE acknowledges and agrees that EMPLOYEE is obligated to
cooperate with GUESS and its counsel, in connection with any subpoenas,
process, or any actual or potential litigation matters related in any way to
GUESS or any officers, directors, or employees of GUESS. EMPLOYEE further
acknowledges and agrees that any breach of this provision will require the
return of any severance amount paid by GUESS under this Agreement.

 

 

4.                                       In
consideration of the covenants undertaken herein by GUESS, EMPLOYEE also hereby
covenants not to sue and fully releases and discharges GUESS, all of its
divisions, and all of its parent, successor, subsidiary and affiliated
companies and entities, and each of their respective divisions, officers,
directors, shareholders, partners, limited partners, agents, employees,
representatives, independent contractors, payroll companies, attorneys, insurers,
licensees and assigns, past and present (all of which and whom are collectively
referred to as “Releasees”), with respect to and from, any and all claims,
demands, rights, liens, agreements, contracts, covenants, actions, suits,
causes of action, obligations, debts, costs, expenses, attorneys’ fees,
damages, judgments, orders and liabilities of whatever kind or nature in law,
equity or otherwise, whether now known or unknown, suspected or unsuspected,
and whether or not concealed or hidden, which EMPLOYEE now owns or holds, or
has at anytime heretofore owned or held, or may in the future hold against said
Releasees, or any of them, arising out of, grounded upon, or in any way
connected with EMPLOYEE’s employment relationship with GUESS, the separation
from that employment, or any other transactions, occurrences, acts or omissions
or any loss, damages or injury whatsoever, known or unknown, suspected or
unsuspected, resulting from any act or omission by or on the part of the
Releasees, or any of them, committed or omitted prior to the date of this
Agreement (“Claim or Claims”). EMPLOYEE’s release of any such Claim or Claims
includes, but is not limited to, any action arising out of any foreign,
federal, state or local constitution, statute, ordinance, regulation, or common
law, including, but not limited to, any Claims arising under the Age
Discrimination In Employment Act; Title VII of the Civil Rights Act of 1964;
the Equal Pay Act; the American with Disabilities Act; the Family and Medical
Leave Act; the Employee Retirement Income Security Act; the Worker Adjustment
and Retraining Notification Act; the California Fair Employment and Housing
Act; all provisions of the California Labor Code; all provisions of the
California Government Code; NLRB charges or Claims of discrimination based on “union”
status; the Orders of the California Industrial Welfare Commission regulating
wages, hours and working conditions; any other foreign, federal, state or local
laws, prohibiting employment discrimination or otherwise regulating employment,
including but not limited to, any Claim or Claims for discrimination, failure
to prevent discrimination, failure to prevent retaliation, harassment, failure
to prevent harassment, assault, battery, misrepresentation, fraud, deceit, invasion
of privacy, breach of contract, breach of collective bargaining agreement,
breach of quasi-contract, breach of implied contract, an accounting, wrongful
or constructive discharge, breach of the covenant of good faith and fair
dealing, libel, slander, negligent or intentional infliction of emotional
distress, violation of public policy, negligent supervision, negligent
retention, negligence, or interference with business opportunity or with
contracts; and any Claim or Claims for vacation pay, severance pay, bonus or
similar benefit, sick leave, pension, retirement, retirement bonus, holiday
pay, life insurance, health or medical insurance, reimbursement of health or
medical costs; provided, however,
that this release shall not affect any rights EMPLOYEE has been granted
pursuant to this Agreement or under any option agreement or restricted stock
agreement with respect to awards scheduled to vest thereunder prior to the
Termination Date.

 

5.                                       EMPLOYEE
expressly acknowledges and agrees that this Agreement includes a waiver and
release of all claims which EMPLOYEE has or may have under the Age
Discrimination in Employment Act of 1967, as amended, 29 U.S.C., §621, et seq.
(“ADEA”). The following terms and conditions apply to and are part of the
waiver and release of ADEA claims under this Agreement.

 

The waiver and release of
claims under the ADEA contained in this Agreement does not cover rights or
claims that may arise after the date on which EMPLOYEE signs this Agreement.
EMPLOYEE has been advised to consult a lawyer before signing this Agreement.
EMPLOYEE is granted twenty-one (21) days after EMPLOYEE is presented with
this Agreement to decide whether or not to sign this Agreement. EMPLOYEE will
have the right to revoke the waiver and release of claims under the ADEA within
seven (7) days of signing this Agreement, and this Agreement shall not
become effective or enforceable until this revocation period has expired.
EMPLOYEE hereby acknowledges and agrees that EMPLOYEE is knowingly and
voluntarily waiving and releasing EMPLOYEE’s rights and claims only in exchange
for consideration (something of value) in addition to anything of value to
which EMPLOYEE is already entitled.

 

6.                                       EMPLOYEE
understands, acknowledges and agrees that the California Civil Code section 1542
states as follows:

 

“A general release does not extend to claims which the
creditor does not know or suspect to exist in his favor at the time of
executing the release, which if known by him must have materially affected his
settlement with the debtor.”

 

EMPLOYEE hereby expressly waives the benefit
of the foregoing statute.

 

 

7.                                       Should any
part, term or provision of this Agreement, with the exception of the releases
embodied in Paragraphs 4, 5 and 6, be declared or determined by any Court
or other tribunal of appropriate jurisdiction to be invalid or unenforceable
such term or provision shall be deemed stricken and severed from this Agreement
and any and all other terms of the Agreement shall remain in full force and
effect to the fullest extent permitted by law. The releases embodied in
Paragraph 4, 5 and 6 are the essence of this Agreement and should any of
these paragraphs be deemed invalid or unenforceable, this Agreement may be
declared null and void and any consideration received under this Agreement
shall be returned to GUESS.

 

8.                                       The parties
hereto acknowledge and agree that this Agreement constitutes and contains the
entire agreement and understanding concerning the subject matter between the
parties and supersedes and replaces all prior negotiations and proposed
agreements, whether written or oral, other than the Confidentiality Agreement
and Sections 7(b) through (e) of the Employment Agreement. Each
of the parties warrants that no other party or any agent or attorney or any
other party has made any promise, representation or warranty whatsoever not
contained herein to induce each party to execute this Agreement and the other
documents referred to herein. Each of the parties represents that they have not
executed this Agreement or the other documents referred to herein in reliance
on any promise, representation or warranty not contained herein.

 

9.                                       The parties
hereto acknowledge and agree that the language of this Agreement shall be
construed as a whole according to its fair meaning and not strictly for or
against any of the parties.

 

10.                                 This Agreement
shall, in all respects, be interpreted, construed and governed by and under the
domestic laws of the State of California. Any judicial proceeding brought to
interpret or enforce this Agreement shall be brought in the County of Los
Angeles, State of California.

 

11.                                 Any dispute or
controversy arising under or in connection with this Agreement shall be settled
exclusively by arbitration in Los Angeles, California, in accordance with the Rules Resolution
of Employment Disputes of the American Arbitration Association then in effect.

 

12.                                 Should any
action be brought to enforce any of the terms or conditions of this Agreement,
the prevailing party shall be entitled to recover all costs and expenses incurred
in the prosecution or defense of this action, including attorneys’ fees.

 

13.                                 EMPLOYEE
acknowledges that EMPLOYEE has carefully read and fully understands this
Agreement, and that EMPLOYEE has had the opportunity to ask GUESS about any
questions, concerns or issues in connection with this Agreement, or its terms.
EMPLOYEE further acknowledges that EMPLOYEE has had the opportunity, and taken
it to the extent EMPLOYEE deemed appropriate and necessary, to consult legal
counsel of EMPLOYEE’s choice, in connection with this Agreement and consents to
all of the terms and provisions contained herein knowingly, voluntarily and
without any reservation whatsoever.

 

14.                                 Either
facsimile or original signatures shall be binding. EMPLOYEE’s signature is
binding when received by GUESS.

 

	
  EMPLOYEE

  	
  GUESS?, INC.

  
	
  /s/ STEPHEN PEARSON

  	
   

  	
  By:

  	
  /s/ CARLOS ALBERINI

  
	
   

  	
   

  	
   

  
	
  Stephen Pearson

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Dated: January 31, 2008

  	
   

  	
  Dated: January 31, 2008

  
				

 

 

EXHIBIT A

 

Confidentiality Agreement

 

 

	
  

  	
  GUESS?, INC.

  

 

CONFIDENTIALITY AGREEMENT

 

This
Agreement is between GUESS?, INC. (“GUESS?”), a Delaware corporation, and the
employee (“Associate”) who has signed below.

 

BACKGROUND

 

·                  GUESS? is a clothing manufacturer
and designer.  In the course of
developing its business and goodwill, GUESS? has developed and continues to
develop techniques and other information that it uses in the manufacturing,
styling, pricing and selling of its apparel products.  This information, and all other information
concerning the operation of GUESS? business is and always has been kept
confidential by GUESS? and is and always has been a trade secret of
GUESS?.  By this Agreement, GUESS?
desires to maintain and preserve the confidentiality of its trade secrets and
other confidential information regarding its business from any unauthorized
disclosures (hereinafter-CONFIDENTIAL INFORMATION).

 

·                  Associate is to be employed by
GUESS?.  The purpose of Associate’s
relationship with GUESS? is to perform personal services to GUESS?.  In order to enable Associate to perform such services,
GUESS? may disclose or authorize the disclosure of trade secrets and other
confidential information to Associate and the Associate may develop additional
trade secrets and confidential information during employment by GUESS? which
shall become part of this CONFIDENTIAL INFORMATION.

 

AGREEMENT

 

Therefore,
in consideration of GUESS? employment or continuing employment of Associate and
the wages or salary paid to Associate, it is agreed:

 

1.               This agreement is in effect during
period of employment or continuing employment of Associate by GUESS?, INC.

2.               During employment, Associate may
receive, develop, otherwise acquire, have access to or become acquainted with
CONFIDENTIAL INFORMATION relating to the business of GUESS?.  Associate understands that the term
CONFIDENTIAL INFORMATION shall include, but not be limited to, all drawings,
designs, patterns, devices, methods, techniques, compilations, processes,
product specifications, future plans, discounts, manufacturing costs, financial
information, cost and suppliers; costs of materials; the prices GUESS? obtains
or has obtained, or at which it sells or has sold its apparel products,
manufacturing and sales costs; written business records, documents
specifications, plans and compilations of information, reports, correspondence,
sales records, account lists, budgets, indexes, invoices, telephone records, or
any other material relating in any manner whatsoever to the customer, sales
representatives or employees (including the salaries of employees other than
Associate and their abilities) of GUESS?. If it is determined that any of the
information identified above is, in whole or in part, not entitled to
protection as a trade secret, it shall be confidential information this is
protected by this Agreement.

a.               Associate agrees that all
CONFIDENTIAL INFORMATION, or any copy, extract or summary, whether originated
or prepared by Associate or by or for GUESS? is and shall remain the exclusive
property of GUESS?.

3.               Associate shall not disclose to
others, either directly or indirectly, or take or use for Associate’s own
purposes or the purposes of others, the CONFIDENTIAL INFORMATION of
GUESS?.  Associate shall not disclose the
name of any employee, customer, sales representative or independent contractor
of GUESS? to any third party, unless the disclosure occurs during Associate’s
employment with GUESS? and is reasonably required by Associate’s position with
GUESS?.  These restrictions shall apply
to (1) trade secrets or confidential information conceived by or belonging
to third parties which are in GUESS?’ possession, and (2) trade secrets or
confidential information conceived, originated, discovered or developed by
Associate within the scope of Associate’s employment.

4.               Any invention, improvement,
development, copyrightable matter, design, idea or suggestion conceived, made,
devised or developed by Associate, solely or jointly with others:

a.               During regular working hours or
with the use of GUESS? equipment, supplies, facilities, CONFIDENTIAL
INFORMATION or trade secrets.

b.              During the term of Associate’s
employment whether during regular working hours or not, which relate to
business of GUESS?; or

c.               during the term of Associate’s
employment and after which embodies, uses or is the result of any CONFIDENTIAL
INFORMATION of GUESS? which Associate has knowledge of, shall be disclosed to
GUESS? by Associate and become the sole property of GUESS?.

5.               As to each invention, improvement,
development, copyrightable matter, design, idea, suggestion or other matter
described above, Associate unqualifiedly assigns to GUESS? all rights,
including foreign patent and priority rights, which Associate has.  Associate agrees that, upon request by
GUESS?, Associate shall promptly execute all instruments and documents
requested by GUESS?, including but not limited to applications for Letters
Patent and assignment of the rights thereto. 
This Agreement does not apply to any invention, which qualifies fully
under the provisions of Section 2870 of the California Labor Code.

6.               Upon the termination of Associate’s
employment, or whenever required by GUESS?, Associate shall immediately deliver
to GUESS? all property and materials in Associate’s possession or under
Associate’s control belonging to GUESS?, including, but not limited to, all
physical embodiments of CONFIDENTIAL INFORMATION.

7.               Associate shall obtain prior
written permission pursuant to GUESS? policies and procedures to publish or
cause to be published any article, book, textbook, play, tape recordings or any
other form of communication concerning GUESS? or the business of GUESS?, GUESS?
may grant or withhold this permission in its sole subjective discretion.

8.               Throughout the duration of
Associate’s employment with GUESS?, or any time thereafter, EMPLOYEE shall not
disrupt, damage, impair or interfere with the business of GUESS? in any manner,
including, and without limitation, for a period of twenty four (24) months
after the termination of Associate’s employment with GUESS?, by directly or
indirectly soliciting, encouraging or inducing an employee to leave the employ
of GUESS?, or by inducing an employee, a consultant, a sales representative or
another independent contractor to end that person’s relationship with GUESS?,
by raiding GUESS?’ employees or sales representatives, or otherwise soliciting,
disrupting or interfering with its relationship with customers, agents,
representatives or vendors, or otherwise. 
Associate is not, however, restricted from being employed by or engaged
in any type of business following the termination of Associate’s employment
relationship with GUESS?.

9.               Associate shall not do anything,
which conflicts with the interest of GUESS? during the term of Associate’s
employment.  Associate shall avoid
conflicts of interest and shall refer questions about potential conflicts to
Associate’s supervisor.

 

 

a.               Associate, during the term of
employment, shall not perform any services or accept any employment with any
organization, which does business with GUESS? or is a competitor of
GUESS?.  This prohibition includes acting
as an advisor or consultant, unless that activity is required as part of the
Associate’s work for GUESS?.

b.              Associate must immediately disclose
in writing to the Human Resources Department any financial interest Associate
or Associate’s immediate family has, during the term of employment, in any
firm, which does business with GUESS? or which competes with GUESS?.

c.               Associate and Associate’s immediate
family are not to, during the term of employment, accept gifts from any person
of firm doing business with GUESS?.  The
meaning of gifts for purposes of this Agreement includes the acceptance of
lavish entertainment and free travel and lodging.

d.              Associate, during the term of
employment, shall not give, offer or promise anything of value to any representative
of a company with which GUESS? does business.

10.         Associate and GUESS? agree that the
CONFIDENTIAL INFORMATION of GUESS?, is of a special, unique unusual,
extraordinary, and intellectual character, which gives it a particular value,
the loss of which would cause irreparable damage and cannot be reasonably
compensated in damages.  If Associate
breaches or attempts to breach any of the provisions of this agreement, GUESS?
shall be entitled to injunctive and other equitable relief to prevent a breach
of this Agreement, or any of the provisions thereof.

11.         The employment relationship between
GUESS? and Associate is at the Mutual consent of Associate and GUESS? and is
not for a fixed term.  Accordingly,
either Associate or GUESS? can end the employment relationship at will, at any
time, with or without cause or advance notice. 
No one in the company has the right to alter the nature of the
employment relationship without a written agreement.  There are not any express or implied
agreements that affect or impair the ability of Associate or GUESS? to
terminate the employment relationship at will.

12.         Nothing in this Agreement shall
limit Associate’s right to discuss the amount of Associate’s own wages with
others or to restrict Associate’s disclosure or use of any information that
GUESS? is not legally capable of protecting under this Agreement.

13.         The provisions of this Agreement
are severable, and if any one or more are determined to be unenforceable by a
court of law, in whole or in part, the remaining provisions shall still be
binding and enforceable.  Moreover, if
any court determines that any of the provisions, or any part thereof, are
unenforceable because of the duration or geographic scope of such provision, as
the case may be, and, it is reduced form, such provision shall then be
enforceable.

14.         The failure of a party to insist
upon strict adherence to any term of this Agreement, or to object to any
failure to comply with any provision of this Agreement, shall not (a) be a
waiver of that term or provision, (b) prevent that party from enforcing
that term or provision, or (c) prevent that party from enforcing that term
of provision by any claim of delay.

 

This
agreement replaces all previous agreements, whether written or oral, relating
to the above subject matter, and cannot be changed orally.  By signing below the Associate acknowledges
that he or she has read it, understands it, and agrees to each of its
provisions.

 

 

	
  /s/
  Stephen L. Pearson

  	
   

  
	
  Associate
  Signature

  	
   

  
	
   

  	
   

  
	
  Stephen
  L. Pearson

  	
   

  
	
  Print
  Name

  	
   

  
	
   

  	
   

  
	
  1-31-06

  	
   

  
	
  Date

  	
   

  

 

Confidentiality Agreement

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