Document:

exv10w20

 

Exhibit 10.20

KLA-Tencor Corporation

2004 EQUITY INCENTIVE PLAN

RESTRICTED STOCK UNIT AGREEMENT

     1.     Grant. The Company hereby grants to the Employee named in the Restricted Stock
Unit Award Notification an award of Restricted Stock Units (“RSUs”), as set forth in the Restricted
Stock Unit Award Notification and subject to the terms and conditions in this Agreement and the
Company’s 2004 Equity Incentive Plan (the “Plan”). When the Shares are issued pursuant
to RSUs which vest in accordance with paragraph 3, the par value per Share will be deemed paid by
the Employee as a result of the services rendered by the Employee prior to the applicable vesting
date. Unless otherwise defined herein, the terms defined in the Plan shall have the same defined
meanings in this Restricted Stock Unit Agreement.

     2.     Company’s Obligation. Each RSU represents the right to receive one Share on the
vesting date of that unit. Unless and until the RSUs vest, the Employee will have no right to
receive Shares under such RSUs. Prior to actual distribution of Shares pursuant to any vested
RSUs, such RSUs will represent an unsecured obligation of the Company, payable (if at all) only
from the general assets of the Company.

     3.     Vesting Schedule. Subject to paragraph 4, the Employee will vest in the RSUs
awarded by this Agreement according to the vesting schedule specified in the Restricted Stock Unit
Award Notification. Accordingly, such vesting may be tied to the attainment of established
performance goals and/or the completion of a specified period of Service Provider status.

     4.     Administrator Discretion. The Administrator, in its discretion, may accelerate the
vesting of the balance, or some lesser portion of the balance, of the RSU at any time, subject to
the terms of the Plan. If so accelerated, such RSUs will be considered as having vested as of the
date specified by the Administrator. If the Administrator, in its discretion, accelerates the
vesting of the balance, or some lesser portion of the balance, of the RSUs, the Shares underlying
those accelerated RSUs shall nevertheless be issued at the same time or times as if such RSUs had
vested in accordance with the vesting schedule set forth in the Restricted Stock Unit Award
Notification (whether or not the Employee remains in Service Provider status as of such date(s)).
Accordingly, there shall be no acceleration of the payment date of the RSUs for which vesting is
accelerated pursuant to this paragraph 4 or the issuance date of the Shares underlying those
vesting-accelerated RSUs.

     5.     Forfeiture upon Termination as Service Provider. Notwithstanding any contrary
provision of this Agreement or the Restricted Stock Unit Award Notification, if the Employee
terminates service as a Service Provider for any or no reason prior to vesting, the unvested RSUs
awarded by this Agreement will thereupon be forfeited at no cost to the Company and without any
payment (in cash or otherwise) due the Employee.

 

 

     6.     Payment upon Vesting. Any RSUs that vest in accordance with paragraph 3 will be
paid to the Employee (or in the event of the Employee’s death, to his or her estate or designated
beneficiaries) in Shares on the date those RSUs vest in accordance with the vesting schedule set
forth in the Restricted Stock Unit Award Notification or as soon thereafter as practicable, subject
to the tax withholding provisions of paragraph 8. Any RSUs that vest in accordance with paragraph 4
will be paid in Shares to the Employee (or in the event of the Employee’s death, to his or her
estate or designated beneficiaries) in accordance with the provisions of such paragraph, subject to
tax withholding provisions of paragraph 8. In the event of any accelerated vesting of the RSUs
pursuant to the provisions of Section 18(c)(ii) of the Plan, the Shares underlying those
accelerated RSUs shall be issued on the accelerated vesting date or as soon thereafter as
administratively practicable, subject to the tax withholding provisions of paragraph 8. For each
RSU that vests, the Employee will receive one Share. In no event shall the Shares be issued later
than the later of (i) the close of the calendar year in which the Shares vest or (for
vesting-accelerated RSUs under paragraph 4) would have vested in the absence of such acceleration
or (ii) the fifteenth (15th) day of the third (3rd) calendar month following such actual or deemed
vesting date.

     7.     Payments after Death. Any distribution or delivery of Shares to be made to the
Employee in accordance with the provisions of this Agreement will, if the Employee is then
deceased, be made to the administrator or executor of the Employee’s estate or the designated
beneficiary or beneficiaries of the RSUs. The Shares shall be issued on the issuance date
determined in accordance with the provisions of paragraph 6. Any such administrator, executor or
beneficiary must furnish the Company with (a) written notice of his or her status as such and (b)
evidence satisfactory to the Company to establish the validity of the transfer and compliance with
any laws or regulations pertaining to said transfer. The Employee may make a beneficiary
designation with respect to the RSUs by filing the appropriate form with the Administrator or its
designate

     8.     Adjustment in Shares. Should any change be made to the Common Stock by reason of
any stock split, stock dividend, spin-off transaction, extraordinary distribution (whether made in
cash, securities or other property), recapitalization, combination of shares, exchange of shares or
other change affecting the outstanding Common Stock as a class without the Company’s receipt of
consideration, then equitable adjustments shall be made by the Administrator to the total number
and/or class of securities issuable pursuant to this Award. Such adjustments shall be made in such
manner as the Administrator deems appropriate in order to reflect such change and thereby preclude
a dilution or enlargement of benefits hereunder.

     9.     Withholding of Taxes. When the Shares are issued as payment for vested RSUs, the
Company will withhold a portion of the vested RSUs that have an aggregate Fair Market Value
sufficient to pay the minimum federal, state and local income, employment and any other applicable
taxes required to be withheld by the Company, unless the Company, in its sole discretion, either
requires or otherwise permits the Employee to make alternate arrangements satisfactory to the
Company for such withholdings in advance of the arising of any withholding obligations. The number
of Shares withheld pursuant to the prior sentence will be rounded up to the nearest whole Share,
with no cash payment due the Employee for the value of any Share

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withheld in excess of the tax obligation as a result of such rounding. Notwithstanding any
contrary provision of this Agreement, no Shares will be issued unless and until satisfactory
arrangements (as determined by the Company) have been made by the Employee with respect to the
payment of any income and other taxes which the Company determines must be withheld or collected
with respect to such Shares. In addition and to the maximum extent permitted by law, the Company
(or the employing Subsidiary) has the right to retain without notice from salary or other amounts
payable to the Employee, cash having a sufficient value to satisfy any tax withholding obligations
that the Company determines cannot be satisfied through the withholding of otherwise deliverable
Shares. All income and other taxes related to the RSU award and any Shares delivered in payment
thereof are the sole responsibility of the Employee. By accepting this RSU award, the Employee
expressly consents to the withholding of Shares and to any additional cash withholding as provided
for in this paragraph 9.

     10.     Rights as Stockholder. Neither the Employee nor any person claiming under or
through the Employee will have any of the rights or privileges of a stockholder of the Company in
respect of any Shares deliverable hereunder unless and until certificates representing such Shares
are issued, recorded on the records of the Company or its transfer agents or registrars, and
delivered to the Employee or Employee’s broker.

     11.     No Effect on Employment. The Employee’s employment or other Service Provider
status with the Company and its Subsidiaries is on an at-will basis only. Accordingly, the terms
of the Employee’s employment or other Service Provider status with the Company and its Subsidiaries
will be determined from time to time by the Company or the Subsidiary employing or retaining the
Employee (as the case may be), and the Company or the Subsidiary will have the right, which is
hereby expressly reserved, to terminate or change the terms of the employment or service
relationship of the Employee at any time for any reason whatsoever, with or without good cause or
notice.

     12.     Address for Notices. Any notice to be given to the Company under the terms of
this Agreement must be addressed to the Company at 3 Technology Drive, Milpitas, California 95035,
Attn: Stock Administration, or at such other address as the Company may hereafter designate
in writing or electronically.

     13.     Grant is Not Transferable. Except to the limited extent provided in paragraph 7,
this grant and the rights and privileges conferred hereby will not be transferred, assigned,
pledged or hypothecated in any way (whether by operation of law or otherwise) and will not be
subject to sale under execution, attachment or similar process. Upon any attempt to transfer,
assign, pledge, hypothecate or otherwise dispose of this grant, or any right or privilege conferred
hereby, or upon any attempted sale under any execution, attachment or similar process, this grant
and the rights and privileges conferred hereby immediately will become null and void.

     14.     Restrictions on Sale of Securities. Subject to the provisions of paragraph 16,
the Company shall use its best efforts to assure that the Shares issued in payment of the vested
RSUs are registered under the federal securities laws or qualify for an available exemption from
such registration requirements and are accordingly freely tradable. However, any sale of the
Shares

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will be subject to any market blackout-period that may be imposed by the Company and must
comply with the Company’s insider trading policies, and any other applicable securities laws.

     15.     Binding Agreement. Subject to the limitation on the transferability of this grant
contained herein, this Agreement will be binding upon and inure to the benefit of the heirs,
legatees, legal representatives, successors and assigns of the parties hereto.

     16.     Additional Conditions to Issuance of Stock. If at any time the Company
determines, in its discretion, that the listing, registration or qualification of the Shares upon
any securities exchange or under any state or federal law, or the consent or approval of any
governmental regulatory authority is necessary or desirable as a condition to the issuance of
Shares to the Employee (or his or her estate or beneficiary), such issuance will not occur unless
and until such listing, registration, qualification, consent or approval have been effected or
obtained, free of any conditions not acceptable to the Company. The Company will make all
reasonable efforts to meet the requirements of any such state or federal law or securities exchange
and to obtain any such consent or approval of any such governmental authority. In no event,
however, shall any Shares be issued in contravention of applicable federal and state securities
laws or other regulatory requirements.

     17.     Plan Governs. This Agreement and the Restricted Stock Unit Award Notification are
subject to all terms and provisions of the Plan. In the event of a conflict between one or more
provisions of this Agreement or the Restricted Stock Unit Award Notification and one or more
provisions of the Plan, the provisions of the Plan will govern.

     18.     Administrator Authority. The Administrator will have the power to interpret the
Plan and this Agreement and to adopt such rules for the administration, interpretation and
application of the Plan as are consistent therewith and to interpret or revoke any such rules
(including, but not limited to, the determination of whether or not any RSUs have vested). All
actions taken and all interpretations and determinations made by the Administrator in good faith
will be final and binding upon Employee, the Company and all other interested persons. No member
of the Administrator will be personally liable for any action, determination or interpretation made
in good faith with respect to the Plan or this Agreement.

     19.     Captions. Captions provided herein are for convenience only and are not to serve
as a basis for interpretation or construction of this Agreement.

     20.     Agreement Severable. In the event that any provision in this Agreement will be
held invalid or unenforceable, such provision will be severable from, and such invalidity or
unenforceability will not be construed to have any effect on, the remaining provisions of this
Agreement.

     21.     Modifications to the Agreement. This Agreement constitutes the entire
understanding of the parties on the subjects covered. The Employee expressly warrants that he or
she is not accepting this Agreement in reliance on any promises, representations, or inducements
other than those contained herein. Modifications to this Agreement or the Plan can be made only

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in an express written contract executed by a duly authorized officer of the Company.
Notwithstanding anything to the contrary in the Plan or this Agreement, the Company reserves the
right to amend this Agreement as it deems necessary or advisable, in its sole discretion and
without the consent of the Employee, to comply with Section 409A of the Code or to otherwise avoid
imposition of any additional tax or income recognition under Section 409A of the Code prior to the
actual payment of Shares pursuant to this RSU award.

     22.     Amendment, Suspension or Termination of the Plan. By accepting this RSU award,
the Employee expressly warrants that he or she has received a right to purchase stock under the
Plan, and has received, read and understood a description of the Plan. The Employee understands
that the Plan is discretionary in nature and may be modified, suspended or terminated by the
Company at any time.

     23.     Electronic Delivery. The Company may, in its sole discretion, decide to deliver
any documents related to RSUs awarded under the Plan or future RSUs that may be awarded under the
Plan by electronic means or request the Employee’s consent to participate in the Plan by electronic
means. By accepting this RSU award, the Employee hereby consents to receive such documents by
electronic delivery and agrees to participate in the Plan through an on-line or electronic system
established and maintained by the Company or another third party designated by the Company.

     24.     Notice of Governing Law. This RSU award shall be governed by, and construed in
accordance with, the laws of the State of California without regard to principles of conflict of
laws.

5exv10w1

 

EXHIBIT 10.1

Form of Executive Severance Agreement

THE YANKEE CANDLE COMPANY, INC.

Executive Severance Agreement

     THIS EXECUTIVE SEVERANCE AGREEMENT is made by and between The Yankee Candle Company, Inc., a
Massachusetts corporation (the “Company”), and                      (the “Executive”) as of September
___, 2006 (the “Effective Date”).

     WHEREAS, the Compensation Committee of the Board of Directors of the Company (the “Board”),
after consultation with a compensation consultant, review of market data, and consideration of such
other factors as it deemed relevant, has recommended that the Company enter into agreements with
certain members of management of the Company, including the Executive, providing for severance
benefits in the event of a termination of employment under specified circumstances, as well as
certain benefits upon a Change in Control Event (as defined below);

     WHEREAS, after considering the recommendation of the Compensation Committee, the Board has
approved the execution of such agreements with certain members of management of the Company,
including the Executive;

     NOW, THEREFORE, as an inducement for and in consideration of the Executive remaining in its
employ and in consideration of the other provisions contained herein, the Company and the Executive
hereby agree as follows.

     1. Key Definitions.

     As used herein, the following terms shall have the following respective meanings:

          1.1 “Change in Control Event” means an event or occurrence set forth in any one or
more of paragraphs (a) through (c) below:

               (a) the acquisition by an individual, entity or group (within the meaning of Section 13(d)(3)
or 14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) (a “Person”)
of beneficial ownership of any capital stock of the Company if, after such acquisition, such Person
beneficially owns (within the meaning of Rule 13d-3 promulgated under the Exchange Act) more than
50% of either (x) the then-outstanding shares of common stock of the Company (the “Outstanding
Company Common Stock”) or (y) the combined voting power of the then-outstanding securities of the
Company entitled to vote generally in the election of directors (the “Outstanding Company Voting
Securities”); provided, however, that for purposes of this paragraph (a), the following
acquisitions shall not constitute a Change in Control Event: (i) any acquisition directly from the
Company (excluding an acquisition pursuant to the exercise, conversion or exchange of any security
exercisable for,
convertible into or exchangeable for common stock or voting securities of the Company, unless
the Person exercising, converting or exchanging such security acquired such security directly from
the Company or an underwriter or agent of the Company), (ii) any acquisition by any

 

 

employee
benefit plan (or related trust) sponsored or maintained by the Company or any corporation
controlled by the Company, or (iii) any acquisition by any company pursuant to a Business
Combination (as defined below) which complies with clauses (i) and (ii) of paragraph (c) of this
Section 1.1; or

               (b) such time as the Continuing Directors (as defined below) do not constitute a majority of
the Board (or, if applicable, the Board of Directors of a successor corporation to the Company),
where the term “Continuing Director” means at any date a member of the Board (x) who was a member
of the Board on the date of this Agreement or (y) who was nominated or elected subsequent to such
date by at least two-thirds of the directors who were Continuing Directors at the time of such
nomination or election or whose election to the Board was recommended or endorsed by at least
two-thirds of the directors who were Continuing Directors at the time of such nomination or
election; provided, however, that there shall be excluded from this clause (y) any individual whose
initial assumption of office occurred as a result of an actual or threatened election contest with
respect to the election or removal of directors or other actual or threatened solicitation of
proxies or consents, by or on behalf of a person other than the Board; or

               (c) the consummation of a merger, consolidation, reorganization, recapitalization or share
exchange involving the Company or a sale or other disposition of all or substantially all of the
assets of the Company (a “Business Combination”), unless, immediately following such Business
Combination, each of the following two conditions is satisfied: (i) all or substantially all of the
individuals and entities who were the beneficial owners of the Outstanding Company Common Stock and
Outstanding Company Voting Securities immediately prior to such Business Combination beneficially
own, directly or indirectly, at least 50% of the then-outstanding shares of common stock and the
combined voting power of the then-outstanding securities entitled to vote generally in the election
of directors, respectively, of the resulting or acquiring company in such Business Combination
(which shall include, without limitation, a company which as a result of such transaction owns the
Company or substantially all of the Company’s assets either directly or through one or more
subsidiaries) (such resulting or acquiring company is referred to herein as the “Acquiring
Company”) in substantially the same proportions as their ownership of the Outstanding Company
Common Stock and Outstanding Company Voting Securities, respectively, immediately prior to such
Business Combination; and (ii) no Person (excluding any employee benefit plan (or related trust)
maintained or sponsored by the Company or by the Acquiring Company) beneficially owns, directly or
indirectly, more than 50% of the then-outstanding shares of common stock of the Acquiring Company,
or of the combined voting power of the then-outstanding securities of such company entitled to vote
generally in the election of directors (except to the extent that such ownership existed prior to
the Business Combination).

          1.2 “Change in Control Date” means the first date on which a Change in Control Event
occurs.

          1.3 “Cause” means the Executive’s (a) intentional failure to perform his or her
reasonably assigned duties, (b) dishonesty or willful misconduct in the performance of his or her
duties, (c) involvement in a transaction in connection with the performance of his or her duties to
the Company or any of its subsidiaries which transaction is adverse to the interests of the

 

 

Company
or any of its subsidiaries and which is engaged in for personal profit or (d) willful violation of
any law, rule or regulation in connection with the performance of his or her duties to the Company
or any of its subsidiaries (other than traffic violations or similar offenses).

          1.4 “Good Reason” means (a) a reduction of more than 5% in the Executive’s annual base
salary in effect immediately prior to the Change in Control Event or a material reduction in the
cash incentive compensation opportunities or other employee benefits available to the Executive
under the executive compensation plan for the fiscal year in which the Change in Control Event
occurs, (b) a material adverse change in the Executive’s duties and responsibilities (other than
reporting responsibilities) from those in effect immediately prior to the Change in Control Event
or (c) a requirement that the Executive relocate his or her principal place of business to a
location that is in excess of 50 miles from his or her principal place of business immediately
prior to the Change in Control Event.

          1.5 “Disability” means (a) the term “Disability” as used in the Company’s long-term
disability plan, if any, or (b) if clause (a) is not applicable, the Executive’s absence from the
full-time performance of the Executive’s duties with the Company for 180 consecutive calendar days
as a result of incapacity due to mental or physical illness which is verified by a physician
selected by the Company or its insurers and acceptable to the Executive or the Executive’s legal
representative.

          1.6 “Date of Termination” means the effective date of the termination of the
Executive’s employment with the Company, as determined pursuant to Section 3.2(a).

          1.7 “Severance Period” means the period of [CEO: 24 months; President/COO and CFO: 18
months; Senior Vice Presidents: 12 months; Vice Presidents: six months] following the Date of
Termination.

     2. Term of Agreement. This Agreement shall take effect upon the Effective Date and
shall expire upon the fulfillment by the Company of all of its obligations under Section 4
following a termination of the Executive’s employment with the Company.

     3. Employment Status and Termination.

          3.1 Not an Employment Contract. The Executive acknowledges that this Agreement does
not constitute a contract of employment or impose on the Company any obligation to retain the
Executive as an employee and that this Agreement does not prevent the Executive from terminating
his or her employment at any time. The Company and Executive each acknowledge that Executive’s
employment with the Company continues to be on an “at will” basis.

          3.2 Termination of Employment.

               (a) Any termination of the Executive’s employment (i) by the Company at any time or (ii) by
the Executive within 24 months following the Change in Control Date (other than due to the death of
the Executive) shall be communicated by a written notice to the other party hereto (the “Notice of
Termination”), given in accordance with Section 7.2. Any Notice of Termination shall: (i) indicate
(in the case of a termination by the Company) whether

 

 

such termination is for Cause and (in the
case of a termination by the Executive within 24 months following the Change in Control Date)
whether such termination is for Good Reason, (ii) to the extent applicable, set forth in reasonable
detail the facts and circumstances claimed to provide a basis for termination of the Executive’s
employment for Cause or for Good Reason and (iii) specify the Date of Termination. The Date of
Termination shall be the close of business on the date specified in the Notice of Termination
(which date may not be less than 15 days or more than 60 days after the date of delivery of such
Notice of Termination), in the case of a termination other than one due to the Executive’s death,
or the date of the Executive’s death, as the case may be.

               (b) The failure by the Company or the Executive to set forth in the Notice of Termination any
fact or circumstance which contributes to a showing of Cause or Good Reason shall not waive any
right of the Company or the Executive, respectively, hereunder or preclude the Company or the
Executive, respectively, from asserting any such fact or circumstance in enforcing the Company’s or
the Executive’s rights hereunder.

               (c) Any Notice of Termination for Cause given by the Company must be given within 90 days
after the occurrence of the event(s) or circumstance(s) that constitute(s) Cause. [For CEO, COO,
CFO and SVP Agreements: Any such Notice of Termination for Cause must be approved by an
affirmative vote of the Board of Directors.]

               (d) Any Notice of Termination for Good Reason given by the Executive must be given within 90
days after the occurrence of the event(s) or circumstance(s) that constitute(s) Good Reason.

     4. Severance Benefits to Executive.

          4.1 Termination Without Cause Prior to the Change in Control Date. If, at any time
prior to the Change in Control Date or more than 24 months following the Change in Control Date,
the Executive’s employment with the Company is terminated by the Company (other than for Cause,
Disability or death), then the Executive shall be entitled to the following payments and benefits:

               (a) Accrued Obligations. The Company shall pay to the Executive, in a lump-sum cash
payment on the Date of Termination, the sum of the following amounts: (A) the Executive’s accrued
base salary through the Date of Termination, (B) any compensation previously deferred by the
Executive (together with any accrued interest or earnings thereon), (C) any accrued but unused
vacation pay, and (D) any other compensation or amounts then owed to the Executive, in each case to
the extent not previously paid (the sum of the amounts described in clauses (A) through (D) shall
be hereinafter referred to as the “Accrued Obligations”); provided, however, that no Accrued
Obligation shall be paid hereunder prior to the otherwise scheduled time for the payment of such
Accrued Obligation to the extent such earlier payment
would be subject to tax and/or interest under Section 409A of the Internal Revenue Code of
1986, as amended (the “Code”).

               (b) Continued Salary Payments. During the Severance Period, the Company shall make
continuing payments to the Executive, in accordance with the Company’s

 

 

regular payroll practices
and subject to all applicable taxes and withholdings, at a rate equal to the Executive’s highest
annual base salary during the one-year period prior to the Date of Termination.

               (c) Pro-rated Bonus. The Company shall pay to the Executive, in a lump-sum cash
payment within 30 days following the Date of Termination, his or her incentive award target under
the executive compensation plan for the fiscal year in which the Date of Termination occurs,
multiplied by a fraction, the numerator of which is the number of days elapsed in such fiscal year
through the Date of Termination and the denominator of which is 365.

               (d) Health/Dental Benefits. The Company will issue an appropriate COBRA notice to the
Executive in connection with the termination of his or her employment. If the Executive elects to,
and is eligible to, receive continued coverage under COBRA, during the Severance Period the Company
will pay the Company premium contribution for the Executive’s family health insurance plan and
family dental insurance plan, each to the same degree as if he or she were an active employee of
the Company. The foregoing payment obligation of the Company shall be conditioned upon the
Executive’s payment of the same individual premium contribution as is required at any given time of
active Company employees with respect to such insurance. The Executive hereby authorizes the
Company to collect the Executive’s individual premium contribution via pre-tax deductions from the
payments to be made to the Executive under Section 4.1(b) if the Executive elects to proceed under
COBRA. [For CEO Agreement only: For any portion of the Severance Period that extends
beyond the period of the Executive’s COBRA eligibility, the Company shall continue to provide to
the Executive, at the Company’s expense, the family health insurance and family dental insurance
benefits that would have been provided to him if he were an active employee; provided that to the
extent such health and dental insurance benefits cannot be provided to non-employees, the Company
shall instead during such period pay to the Executive an amount equal to the cost to the Company of
providing such benefits to a similarly situated employee.] [For SVP/VP Agreements only Should the
Executive elect and be entitled to continued COBRA eligibility beyond the Severance Period, he or
she shall be entitled to receive such additional period of coverage at his or her expense.]
Notwithstanding the above provisions of this Section 4.1(d), the Company’s obligations under this
Section 4.1(d) to pay the health insurance premiums referenced above shall cease automatically,
prior to the expiration of the Severance Period, if and when the Executive first becomes eligible
for health insurance benefits from a new employer, and the Company’s obligations under this Section
4.1(d) to pay the dental insurance premiums referenced above shall cease automatically, prior to
the expiration of the Severance Period, if and when the Executive first becomes eligible for dental
insurance benefits from a new employer. The Executive agrees to so notify the Company in writing
within three days of becoming eligible for health insurance benefits or dental insurance benefits
from a new employer during the Severance Period.

               (e) Outplacement Services. The Company shall provide to the Executive outplacement
and career assistance services through an outplacement firm of the Company’s choosing. Such
services shall be provided at the Company’s expense, in an amount not to exceed $10,000 in the
aggregate, so long as the Executive is actively and diligently cooperating with the outplacement
firm and using diligent efforts to obtain other employment. If the Executive wishes to utilize
such outplacement services for a cost in excess of $10,000, the

 

 

Executive is free to do so at his
or her sole cost and expense. All amounts due and payable in connection with the services
provided hereunder shall be billed directly to the Company and paid by the Company directly to the
outplacement firm (subject to the cost limit set forth above). The Executive shall not be entitled
to be paid any amounts directly with respect to outplacement services, even if the Executive fails
to utilize the outplacement services made available by the Company. All obligations of the Company
with respect to outplacement services shall cease immediately upon the acceptance by the Executive
of new employment or upon the Executive’s failure to actively and diligently cooperate with the
outplacement firm.

          4.2 Termination Without Cause or for Good Reason Following the Change in Control Date.
If, within 24 months following the Change in Control Date, the Executive’s employment with the
Company is terminated by the Company (other than for Cause, Disability or death) or by the
Executive for Good Reason, then the Executive shall be entitled to the following payments and
benefits:

               (a) Accrued Obligations. The Company shall pay to the Executive, in a lump-sum cash
payment on the Date of Termination, the sum of the Accrued Obligations; provided, however, that no
Accrued Obligation shall be paid hereunder prior to the otherwise scheduled time for the payment of
such Accrued Obligation to the extent such earlier payment would be subject to tax and/or interest
under Section 409A of the Code.

               (b) Continued Salary and Bonus Payments. [For CEO, President/COO, CFO and Senior Vice
Presidents: The Company shall pay to the Executive, in a lump-sum cash payment within 30 days
following the Date of Termination, [CEO: 200% of; President/COO and CFO: 150% of; Senior Vice
Presidents: 100% of] the sum of (i) the Executive’s highest annual base salary during the one-year
period prior to the Date of Termination and (ii) his or her incentive award target under the
executive compensation plan for the fiscal year in which the Date of Termination occurs or, if such
incentive award target was greater in the prior fiscal year than in such fiscal year, his or her
incentive award target under the executive compensation plan for the prior fiscal year (such
greater incentive award target being referred to herein as the “Applicable Incentive Award
Target”).] [For Vice Presidents: The Company shall pay to the Executive, in a lump-sum cash
payment within 30 days following the Date of Termination, the sum of (i) 50% of the Executive’s
highest annual base salary during the one-year period prior to the Date of Termination and (ii) his
or her incentive award target under the executive compensation plan for the fiscal year in which
the Date of Termination occurs or, if such incentive award target was greater in the prior fiscal
year than in such fiscal year, his or her incentive award target under the executive compensation
plan for the prior fiscal year (such greater incentive award target being referred to herein as the
“Applicable Incentive Award Target”).]

               (c) Pro-rated Bonus. The Company shall pay to the Executive, in a lump-sum cash
payment within 30 days following the Date of Termination, his or her Applicable Incentive Award
Target, multiplied by a fraction, the numerator of which is the number of days elapsed in such
fiscal year through the Date of Termination and the denominator of which is 365.

 

 

               (d) Health/Dental Benefits. The Company shall provide to the Executive, during the
Severance Period, the health and dental benefits provided for in Section 4.1(d), on the same terms
and conditions as are set forth in that Section.

               (e) Other Employee Benefits. During the Severance Period, the Company shall continue
to provide to the Executive those employee benefits, excluding the health and dental benefits
covered by Section 4.2(d) (the “Other Benefits”), that the Executive would be entitled to receive
if he or she were an active employee of the Company, in accordance with the terms of the applicable
benefit plan or program in which the Executive was participating immediately prior to the Date of
Termination; provided that the Company shall be obligated to provide such benefits to the Executive
only to the extent that the terms of the applicable benefit plan or program covering one or more
Other Benefits permit the provision of such Other Benefits to non-employees of the Company.
Notwithstanding the above provisions of this Section 4.2(e), the Company’s obligations under this
Section 4.2(e) to provide any of the Other Benefits or make the payments referred to in the
preceding sentence shall cease automatically, prior to the expiration of the Severance Period, if
and when the Executive first becomes eligible for comparable benefits from a new employer. The
Executive agrees to so notify the Company in writing within three days of becoming eligible for
benefits comparable to any of the Other Benefits from a new employer during the Severance Period.

               (f) Outplacement Services. The Company shall provide to the Executive the
outplacement and career assistance services provided for in Section 4.1(e), on the same terms and
conditions as are set forth in that Section.

          4.3 Other Employment Terminations. If the Executive’s employment with the Company
terminates under any circumstances other than the circumstances covered by Section 4.1 or Section
4.2, then the Company shall pay the Executive (or his or her estate, if applicable), in a lump-sum
cash payment on the Date of Termination, the Accrued Obligations.

          4.4 Stock Acceleration. If a Change in Control Event occurs during the term of this
Agreement, then, effective immediately prior to the Change in Control Event, (a) each outstanding
option to purchase shares of Common Stock of the Company held by the Executive shall become
immediately exercisable in full and (b) all outstanding restricted shares of Common Stock held by
the Executive shall become fully vested and no longer be subject to a right of repurchase by or
risk of forfeiture to the Company. Any stock options and restricted shares held by the Executive
shall otherwise continue to be bound by the terms of the applicable agreement and plan.

          4.5 Performance Shares.

               (a) 2004-2006 Performance Period. If a Change in Control Event occurs prior to the
date on which the Company would otherwise issue, under the Award of
Performance Shares Agreement between the Company and the Executive dated on or about January
7, 2005 covering the Performance Period of the three fiscal years ending January 1, 2005, December
31, 2005 and December 30, 2006, the Performance Shares issuable under such Agreement, then the
Company shall issue to the Executive, immediately prior to the Change in Control Event, 60% of the
target number of Performance Shares specified in such Agreement.

 

 

               (b) 2005-2007 Performance Period. If a Change in Control Event occurs on or prior to
December 29, 2007, then the Company shall issue to the Executive, immediately prior to the Change
in Control Event, 66-2/3% of the target number of Performance Shares specified in the Award of
Performance Shares Agreement between the Company and the Executive dated on or about                     
covering the Performance Period of the three fiscal years ending December 31, 2005, December 30,
2006 and December 29, 2007.

               (c) 2006-2008 Performance Period. If a Change in Control Event occurs on or prior to
December 29, 2007, then the Company shall issue to the Executive, immediately prior to the Change
in Control Event, 33-1/3% of the target number of Performance Shares specified in the Award of
Performance Shares Agreement between the Company and the Executive dated on or about                     
covering the Performance Period of the three fiscal years ending December 30, 2006, December 29,
2007 and January 3, 2009. If a Change in Control Event occurs after December 29, 2007 but on or
prior to January 3, 2009, then the Company shall issue to the Executive, immediately prior to the
Change in Control Event, 66-2/3% of the target number of Performance Shares specified in such Award
of Performance Shares Agreement.

               (d) General. The Award of Performance Shares Agreements referenced in this Section
4.5 shall be deemed amended by this Agreement to the extent necessary to comply with the terms of
this Section 4.5. Any issuance of Performance Shares pursuant to the terms of this Section 4.5
under a particular Award of Performance Shares Agreement shall be deemed to satisfy in full the
Company’s obligations under such Award of Performance Shares Agreement. All capitalized terms used
in this Section 4.5 which are not otherwise defined in this Agreement shall have the meanings
ascribed to them in the applicable Award of Performance Shares Agreement.

          4.6 Taxes.

               (a) Notwithstanding any other provision of this Agreement, in the event that the Company
undergoes a “Change in Ownership or Control” (as defined below), the Company shall not be
obligated to provide to the Executive a portion of any “Contingent Compensation Payments” (as
defined below) that the Executive would otherwise be entitled to receive to the extent necessary to
eliminate any “excess parachute payments” (as defined in Section 280G(b)(1) of the Code) for the
Executive. For purposes of this Section 4.6, the Contingent Compensation Payments so eliminated
shall be referred to as the “Eliminated Payments” and the aggregate amount (determined in
accordance with Proposed Treasury Regulation Section 1.280G-1, Q/A-30 or any successor provision)
of the Contingent Compensation Payments so eliminated shall be referred to as the “Eliminated
Amount.”

               (b) Notwithstanding the provisions of Section 4.6(a), no such reduction in Contingent
Compensation Payments shall be made if (i) the Eliminated Amount (computed without regard to this
sentence) exceeds (ii) 105% of the aggregate present value (determined in accordance with Proposed
Treasury Regulation Section 1.280G-1, Q/A-31 and Q/A-32 or any successor provisions) of the amount
of any additional taxes that would be incurred by the Executive if the Eliminated Payments
(determined without regard to this sentence) were paid to him or her (including, state and federal
income taxes on the Eliminated

 

 

Payments, the excise tax imposed by Section 4999 of the Code payable
with respect to all of the Contingent Compensation Payments in excess of the Executive’s “base
amount” (as defined in Section 280G(b)(3) of the Code), and any withholding taxes). The override
of such reduction in Contingent Compensation Payments pursuant to this Section 4.6(b) shall be
referred to as a “Section 4.6(b) Override.” For purpose of this paragraph, if any federal or state
income taxes would be attributable to the receipt of any Eliminated Payment, the amount of such
taxes shall be computed by multiplying the amount of the Eliminated Payment by the maximum combined
federal and state income tax rate provided by law.

               (c) For purposes of this Section 4.6 the following terms shall have the following respective
meanings:

                    (i) “Change in Ownership or Control” shall mean a change in the ownership or effective control
of the Company or in the ownership of a substantial portion of the assets of the Company determined
in accordance with Section 280G(b)(2) of the Code.

                    (ii) “Contingent Compensation Payment” shall mean any payment (or benefit) in the nature of
compensation that is made or made available (under this Agreement or otherwise) to a “disqualified
individual” (as defined in Section 280G(c) of the Code) and that is contingent (within the meaning
of Section 280G(b)(2)(A)(i) of the Code) on a Change in Ownership or Control of the Company.

                    (iii) “Excess Parachute Payment” shall mean a payment described in Section 280G(b)(1) of the
Code.

               (d) Any payments or other benefits otherwise due to the Executive following a Change in
Ownership or Control that could reasonably be characterized as Contingent Compensation Payments
(the “Potential Payments”) shall not be made until the dates provided for in this Section 4.6(d).

                    (i) In the event that the Company undergoes a Change in Ownership or Control, and the
Executive becomes entitled to receive Contingent Compensation Payments relating to such Change in
Ownership or Control, the Company shall (A) determine at such time or times as may be necessary to
comply with the requirements under Section 280G of the Code whether such Contingent Compensation
Payments constitute in whole or in part Excess Parachute Payments and (B) in the event the Company
determines that such Contingent Compensation Payments constitute in whole or in part Excess
Parachute Payments, notify the Executive (within 30 days after each such determination and with
reasonable detail regarding the basis for its determinations) of the following: (1) which Potential
Payments constitute Contingent
Compensation Payments, (2) the Eliminated Amount and (3) whether the Section 4.6(b) Override
is applicable.

                    (ii) Within 30 days after delivery of such notice to the Executive, the Executive shall
deliver a response to the Company (the “Executive Response”) stating either (A) that he or she
agrees with the Company’s determination pursuant to the preceding sentence, in which case he or she
shall indicate, if applicable, which Contingent Compensation Payments, or portions thereof (the
aggregate amount of which, determined in

 

 

accordance with Treasury Regulation Section 1.280G-1,
Q/A-30 or any successor provision, shall be equal to the Eliminated Amount), shall be treated as
Eliminated Payments or (B) that he or she disagrees with such determination, in which case he or
she shall set forth (1) which Potential Payments should be characterized as Contingent Compensation
Payments, (2) the Eliminated Amount, (3) whether the Section 4.6(b) Override is applicable, and (4)
which (if any) Contingent Compensation Payments, or portions thereof (the aggregate amount of
which, determined in accordance with Treasury Regulation Section 1.280G-1, Q/A-30 or any successor
provision, shall be equal to the Eliminated Amount, if any), shall be treated as Eliminated
Payments.

                    (iii) If the Executive fails to deliver an Executive Response on or before the required date,
or if the Executive states in the Executive Response that he or she agrees with the Company’s
determinations, the Company’s initial determinations shall be final, the Contingent Compensation
Payments that shall be treated as Eliminated Payments shall be determined by the Company in its
absolute discretion, and the Company shall make the Potential Payments (other than the Eliminated
Payments) to the Executive within 10 business days following the due date for delivery to the
Company of the Executive Response (except for any Potential Payments which are not due to be made
until after such date, which Potential Payments shall be made on the date on which they are due).

                    (iv) If the Executive states in the Executive Response that he or she disagrees with the
Company’s determinations, then, for a period of 60 days following delivery of the Executive
Response, the Executive and the Company shall use good faith efforts to resolve such dispute. If
such dispute is not resolved within such 60-day period, such dispute shall be settled exclusively
by arbitration in Boston, Massachusetts, in accordance with the rules of the American Arbitration
Association then in effect. Judgment may be entered on the arbitrator’s award in any court having
jurisdiction. The Company shall, within 10 business days following delivery to the Company of the
Executive Response, make to the Executive those Potential Payments as to which there is no dispute
between the Company and the Executive regarding whether they should be made (except for any such
Potential Payments which are not due to be made until after such date, which Potential Payments
shall be made on the date on which they are due). The balance of the Potential Payments (other
than Eliminated Payments) shall be made within 10 business days following the resolution of such
dispute.

                    (v) Subject to the limitations contained in Sections 4.6(a) and (b) hereof, the amount of any
payments to be made to the Executive following the resolution of such dispute shall be increased by
the amount of the accrued interest thereon computed at the prime rate announced from time to time
by Bank of America, compounded monthly from the date that such payments originally were due.

                    (vi) In the event the Company is required to perform a redetermination in accordance with
Treas. Reg. 1.280G-1 Q/A-33(b) with respect to any Contingent Compensation Payments, this Section
4.6(d) shall apply with respect to such redetermination and the parties shall make such adjustments
as may be necessary as a result of such redetermination including, if appropriate, the payment by
the Company of Contingent Compensation Payments previously treated as Eliminated Payments if the
Section 4.6(b) Override applies as a result of such redetermination.

 

 

               (e) The provisions of this Section 4.6 are intended to apply to any and all payments or
benefits available to the Executive under this Agreement or any other agreement or plan of the
Company under which the Executive receives Contingent Compensation Payments.

          4.7 Release. The obligation of the Company to make the payments and provide the
benefits to the Executive under clauses (b) through (e) of Section 4.1 or clauses (b) through (f)
of Section 4.2 is conditioned upon the Executive signing a release of claims in a form reasonably
requested by the Company (the “Employee Release”), within such period of time as the Company may
specify following the Date of Termination, and upon the Employee Release becoming effective in
accordance with its terms. The Company shall not be obligated to make any payments to the
Executive under clauses (b) or (c) of Section 4.1 or clauses (b) or (c) of Section 4.2 until the
Employee Release has become effective; provided that at such time as the Employee Release becomes
effective, the Company shall promptly pay to the Executive any payments that would otherwise have
been made to the Executive between the Termination Date and date on which the Employee Release
becomes effective.

          4.8 Exclusive Severance Benefits. The making of the payments and the provision of the
benefits by the Company to the Executive under this Agreement shall constitute the entire
obligation of the Company to the Executive as a result of the termination of his or her employment,
and the Executive shall not be entitled to additional payments or benefits as a result of such
termination of employment in connection under any other plan, program, policy, practice, contract
or agreement of the Company or its subsidiaries, except in accordance with the terms of the Special
Retention Bonus Plan.

          4.9 Mitigation. The Executive shall not be required to mitigate the amount of any
payment or benefits provided for in Section 4.1 or Section 4.2 by seeking other employment or
otherwise. Further, except as provided in Section 4.1(d) and Section 4.2(d) and (e), the amount of
any payment or benefits provided for in Section 4.1 or Section 4.2 shall not be reduced by any
compensation or benefits received by the Executive as a result of employment by another employer.

          4.10 Expenses. The Company agrees to reimburse the Executive for all legal and other
fees and expenses that the Executive may reasonably incur as a result of any claim or dispute
regarding the benefits due to the Executive pursuant to Section 4.1 or Section 4.2 if the Executive
prevails in such claim or dispute.

     5. Disputes. [For CEO, President and SVP Agreements: All claims by the Executive for
benefits under this Agreement shall be directed to and determined by the Board of Directors of
the Company and shall be in writing. Any denial by the Board of Directors of a claim for
benefits under this Agreement shall be delivered to the Executive in writing and shall set forth
the specific reasons for the denial. The Board of Directors shall afford a reasonable opportunity
to the Executive for a review of the decision denying a claim. Any further dispute or controversy
arising under or in connection with this Agreement shall be settled exclusively by arbitration in
Boston, Massachusetts, in accordance with the rules of the American Arbitration Association then in
effect. Judgment may be entered on the arbitrator’s award in any court having jurisdiction.] [For
Vice President Agreements: All claims by the Executive for benefits under

 

 

this Agreement shall be
directed to and mutually determined by the Chief Executive Officer and the General Counsel of the
Company and shall be in writing. Any denial by the Chief Executive Officer and the General Counsel
of a claim for benefits under this Agreement shall be delivered to the Executive in writing and
shall set forth the specific reasons for the denial. The Chief Executive Officer and the General
Counsel shall afford a reasonable opportunity to the Executive for a review of the decision denying
a claim. Any further dispute or controversy arising under or in connection with this Agreement
shall be settled exclusively by arbitration in Boston, Massachusetts, in accordance with the rules
of the American Arbitration Association then in effect. Judgment may be entered on the
arbitrator’s award in any court having jurisdiction.] Notwithstanding anything herein to the
contrary, any dispute or controversy arising out of or relating to the Proprietary and Confidential
Information Agreement referred to in Section 7.3 below or the non-competition and non-solicitation
covenants in Section 7.3 below shall not be subject to arbitration under this Section 5.

     6. Section 409A. The Company and the Executive intend that this Agreement and any
deferral of compensation pursuant to its terms comply with the requirements of Section 409A of the
Code, so that any payments hereunder are not subject to the taxes and interest imposed by such
section. Accordingly, the parties agree that:

          6.1 Notwithstanding anything to the contrary in this Agreement, to the extent that the
Executive would be entitled under this Agreement to any payment or benefit that constitutes
nonqualified deferred compensation under Section 409A of the Code, such payment or benefit will be
paid or provided to the Executive on the later of the times specified by this Agreement (other than
in this Section 6) or, if applicable, the times set forth in Section 6.2. In no event shall
payments be made or benefits provided prior to such times as may be required to comply with Section
409A.

          6.2 In the event the Executive is a specified employee within the meaning of Section 409A of
the Code:

               (a) notwithstanding anything to the contrary in this Agreement, to the extent that the
Executive would otherwise be entitled under this Agreement to receive, during the six months
beginning on the Date of Termination, any payment that constitutes nonqualified deferred
compensation under Section 409A of the Code, such payment shall be paid to the Executive within 10
business days following the earlier of the Executive’s death or the date that is six months and one
day after the Date of Termination; and

               (b) notwithstanding anything to the contrary in this Agreement, to the extent that the
Executive would otherwise be entitled under this Agreement to receive, during the
six months beginning on the Date of Termination, any benefit (other than a payment) that
constitutes nonqualified deferred compensation under Section 409A of the Code, (i) such benefit
will be delayed until the date that is six months after the Date of Termination and the applicable
period for such benefit will be reduced by six months, and (ii) the Company will pay to the
Executive within 10 business days following the date that is six months and one day after the Date
of Termination a lump sum cash payment equal to the cost that the Executive would incur on an
after-tax basis to obtain such benefit for him (including family or dependent coverage, if
applicable) on an individual basis during such six-month period.

 

 

          6.3 The Company and the Executive shall use good faith efforts to agree on any revisions to
this Agreement that may be required to conform the provisions of this Agreement to the requirements
of Section 409A and any regulations or other Internal Revenue Service guidance issued thereunder,
while also preserving the economic terms currently set forth herein.

     7. Miscellaneous.

          7.1 Successors. This Agreement shall be binding upon the Company and its successors
and assigns (including the resulting or acquiring company in a Business Combination). In the event
of a Business Combination (and provided that, in the case of a Business Combination structured as
the sale or other disposition of all or substantially all of the assets of the Company, the
Executive accepts employment with the Acquiring Company effective on or about the Change in Control
Date), all references in this Agreement to the Company shall instead be deemed to refer to the
Acquiring Company. This Agreement shall inure to the benefit of and be enforceable by the
Executive’s personal or legal representatives, executors, administrators, successors, heirs,
distributees, devisees and legatees. If the Executive should die while any amount would still be
payable to the Executive or his or her family hereunder if the Executive had continued to live, all
such amounts, unless otherwise provided herein, shall be paid in accordance with the terms of this
Agreement to the executors, personal representatives or administrators of the Executive’s estate.

          7.2 Notices. All notices, instructions and other communications given hereunder or in
connection herewith shall be in writing. Any such notice, instruction or communication shall be
sent either (i) by registered or certified mail, return receipt requested, postage prepaid, or (ii)
prepaid via a reputable nationwide overnight courier service, in each case addressed to the
Company, at 16 Yankee Candle Way, P.O. Box 110, South Deerfield, MA 01373, Attn: General Counsel,
and to the Executive at the Executive’s address indicated on the signature page of this Agreement
(or to such other address as either the Company or the Executive may have furnished to the other in
writing in accordance herewith). Any such notice, instruction or communication shall be deemed to
have been delivered five business days after it is sent by registered or certified mail, return
receipt requested, postage prepaid, or one business day after it is sent via a reputable nationwide
overnight courier service. Either party may give any notice, instruction or other communication
hereunder using any other means, but no such notice, instruction or other communication shall be
deemed to have been duly delivered unless and until it actually is received by the party for whom
it is intended.

          7.3 Confidentiality and Non-competition and Non-solicitation Agreements.

               (a) Confidentiality Agreement. The Executive acknowledges that he or she is bound by
a Proprietary and Confidential Information Agreement between the Company and the Executive dated
                    , 200_. The Executive hereby reaffirms his or her obligations under such agreement
and acknowledges and agrees that the Company’s obligations under this Agreement constitute
additional consideration for such obligations of the Executive.

 

 

               (b) Non-competition and Non-solicitation Covenants. In consideration of the payments
and other benefits to be provided to the Executive pursuant to this Agreement, the Executive hereby
covenants and agrees as follows:

                    (i) While the Executive is employed by the Company and for a period of two years after the
termination or cessation of such employment for any reason,

                         (1) the Executive shall not, directly or indirectly, as an individual proprietor, partner,
stockholder, officer, employee, director, joint venture, investor, lender, consultant, or in any
other capacity whatsoever (other than as the holder of not more than one percent of the combined
voting power of the outstanding stock of a publicly held company), engage in or be affiliated with
any business that is competitive with the business of the Company, including but not limited to any
business or enterprise that either (A) develops, manufactures, markets, licenses or sells candles,
candle accessories, or home fragrance products, or (B) otherwise provides any other consumer
product or service that competes with any product or service that (1) was developed, manufactured,
marketed, licensed, sold or provided by the Company during the time in which the Executive was
employed with the Company, or (2) the Company planned, during the time in which the Executive was
employed with the Company, to develop, manufacture, market, license, sell or provide; and

                         (2) the Executive shall not, either alone or in association with others (A) solicit, or permit
any organization directly or indirectly controlled by the Executive to solicit, any employee of the
Company to leave the employ of the Company, or (B) solicit for employment, hire or engage as an
independent contractor, or permit any organization directly or indirectly controlled by the
Executive to solicit for employment, hire or engage as an independent contractor, any person who
was employed by the Company at the time of the termination or cessation of the Executive’s
employment with the Company; provided, that this clause (B) shall not apply to the
solicitation, hiring or engagement of any individual whose employment with the Company has been
terminated for a period of six months or longer.

                    (ii) If any restriction set forth in this Section 7.3 is found by any court of competent
jurisdiction to be unenforceable because it extends for too long a period of time or over too great
a range of activities or in too broad a geographic area, it shall be interpreted to extend only
over the maximum period of time, range of activities or geographic area as to which it may be
enforceable.

                    (iii) The restrictions contained in this Section 7.3 are necessary for the protection of the
business and goodwill of the Company and are considered by the Executive to be reasonable for such
purpose. The Executive agrees that any breach of this Section 7.3 is likely to cause the Company
substantial and irrevocable damage that is difficult to measure. Therefore, in the event of any
such breach or threatened breach, the Executive agrees
that the Company, in addition to such other remedies which may be available, shall have the
right to obtain an injunction from a court restraining such a breach or threatened breach and the
right to specific performance of the provisions of this Agreement and the Executive hereby waives
the adequacy of a remedy at law as a defense to such relief.

 

 

                    (iv) The Executive hereby acknowledges and agrees that the Company’s obligations under this
Agreement constitute valid and sufficient consideration for the non-competition and
non-solicitation obligations of the Executive under this Section 7.3(b). The terms of this Section
7.3 supercede any other non-competition and non-solicitation agreements or covenants between the
Company and the Executive.

          7.4 Employment by Subsidiary. For purposes of this Agreement, the Executive’s
employment with the Company shall not be deemed to have terminated if the Executive’s employment
with the Company terminates but the Executive continues to be employed by a wholly-owned subsidiary
of the Company.

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

          7.6 Governing Law and Jurisdiction. The validity, interpretation, construction and
performance of this Agreement shall be governed by the internal laws of the Commonwealth of
Massachusetts, without regard to conflicts of law principles. Except with respect to matters
subject to arbitration under Section 5, any suit, action or other legal proceeding that is
commenced to resolve any matter arising under or relating to this Agreement shall be commenced only
in a court of the Commonwealth of Massachusetts (or, if appropriate, a federal court located within
the Commonwealth of Massachusetts), and the parties to this Agreement consent to the jurisdiction
of such court.

          7.7 Waivers. No waiver by either party at any time of any breach of, or compliance
with, any provision of this Agreement to be performed by the other party shall be deemed a waiver
of that or any other provision at any subsequent time.

          7.8 Counterparts. This Agreement may be executed in counterparts, each of which shall
be deemed to be an original but both of which together shall constitute one and the same
instrument.

          7.9 Tax Withholding. Any payments provided for hereunder shall be paid net of any
applicable tax withholding required under federal, state or local law.

          7.10 Entire Agreement. This Agreement sets forth the entire agreement of the parties
hereto in respect of the subject matter contained herein and supersedes all prior agreements,
promises, covenants, arrangements, communications, representations or warranties, whether oral or
written, by any officer, employee or representative of any party hereto in respect of the subject
matter contained herein; and any prior agreement of the parties hereto in respect of the subject
matter contained herein, including without limitation [identify any offer letter or other
agreement, or provision thereof, with the Executive containing severance provisions] between the
Company and the Executive dated                     , 200_, is hereby terminated and cancelled.
Notwithstanding the foregoing, any Proprietary and Confidential Information Agreement, Stock
Option Agreement, Restricted Stock Agreement and/or Award of Performance Shares Agreement between
the Company and the Executive, and/or any rights the Executive may have under the Company’s Special
Retention Bonus Plan, shall not be superceded or terminated by

 

 

this Agreement (provided that
Sections 4.4 and 4.5 may modify the terms of such Stock Option Agreement, Restricted Stock
Agreement and/or Award of Performance Shares Agreement).
 

          7.11 Amendments. This Agreement may be amended or modified only by a written
instrument executed by both the Company and the Executive.

          7.12 Executive’s Acknowledgements. The Executive acknowledges that he or she: (a) has
read this Agreement; (b) has been represented in the preparation, negotiation, and execution of
this Agreement by legal counsel of the Executive’s own choice or has voluntarily declined to seek
such counsel; (c) understands the terms and consequences of this Agreement; and (d) understands
that the law firm of Wilmer Cutler Pickering Hale and Dorr LLP is acting as counsel to the Company
in connection with the transactions contemplated by this Agreement, and is not acting as counsel
for the Executive.

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year
first set forth above.

	 	 	 	 	 	 	 
	 	 	THE YANKEE CANDLE COMPANY, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 

 

 

	 	 	 	 	 
	 

	 	[NAME OF EXECUTIVE]	 	 
	 
	 	 	 	 
	 

	 	Address:

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