Document:

2012 Performance Bonus Plan

 Exhibit 10.16 
 FIVE BELOW, INC. 
 2012 PERFORMANCE BONUS PLAN 

Section 1. Purpose. The purpose of the Five Below, Inc. Performance Bonus Plan (the “Plan”) is to
benefit and advance the interests of Five Below, Inc., a Pennsylvania corporation (the “Company”), by rewarding selected employees of the Company and its subsidiaries and divisions (each such subsidiary or division is
referred to herein as a “Business Unit”) for their contributions to the Company’s financial success and thereby motivate them to continue to make such contributions in the future by granting performance-based awards
(“Awards”). 
 Section 2. Certain Definitions. For the purposes of the Plan the following
terms shall be defined as set forth below: 
 (a) “Applicable Employee Remuneration” has the meaning
given to such term in Section 162(m)(4) of the Code. 
 (b) “Base Salary Percentage” means a
percentage of the Participant’s annual base salary in effect as of the later of (i) the first day of the Performance Period or (ii) the common salary adjustment date within the Performance Period. 

(c) “Board” means the Board of Directors of the Company. 

(d) “Code” means the Internal Revenue Code of 1986, as amended. 

(e) “Committee” means the Compensation Committee of the Board. 

(f) “Covered Employee” has the same meaning given to such term in Section 162(m)(3) of the Code;
provided, however, that a person will be considered a Covered Employee for purposes of this Plan only if such employee’s Applicable Employee Remuneration for the relevant Fiscal Year is expected to exceed $1,000,000. No person shall be
considered a Covered Employee during the applicable reliance period under Treasury Regulation 1.162-27(f). 
 (g)
“Eligible Persons” has the meaning given to that term in Section 4(a) hereof. 
 (h)
“Financial Criteria” has the meaning given to that term in Section 6(a) hereof. 
 (i)
“Fiscal Year” means the fiscal year ending on the Saturday closest to January 31 of each year or such other period that the Company may hereafter adopt as its fiscal year. 

(j) “Performance Period” means the period of time over which the Performance Threshold must be satisfied, which
period may be of such length as the Committee, in its discretion, shall select. The Performance Period need not be identical for all Awards. Within one Fiscal Year, the Committee may establish multiple Performance Periods. 

 (k) “Performance Threshold” has the meaning given to such term in
Section 6(b) hereof (in the case of a Covered Employee), or Section 7(b) hereof (in the case of a Participant who is not a Covered Employee). 
 (l) “Target” has the meaning given to such term in Section 6(a) hereof (in the case of a Covered Employee), or Section 7(a) hereof (in the case of a Participant who is
not a Covered Employee). 
 Section 3. Administration of the Plan. 

(a) Generally. The Plan shall be administered by the Committee. The Committee is authorized to administer, interpret and apply the
Plan and from time to time may adopt such rules, regulations and guidelines consistent with the provisions of the Plan as it may deem advisable to carry out the Plan, except that the Committee may authorize any one or more of its members, or any
officer of the Company, to execute and deliver documents on behalf of the Committee. The Committee’s interpretations of the Plan, and all actions taken and determinations made by the Committee pursuant to the powers vested in it hereunder,
shall be conclusive and binding on all parties concerned, including the Company, its stockholders and Participants (as defined below). The Committee shall have authority to determine the terms and conditions of the Awards granted to Participants.

 (b) Delegation. The Committee may delegate its responsibilities for administering the Plan to any executive officer of
the Company, as the Committee deems necessary; provided however, that the Committee shall not delegate its responsibilities under the Plan relating to Covered Employees. 
 (c) Reliance and Indemnification. The Committee may employ attorneys, consultants, accountants or other persons, and the Committee, the Company and its officers and directors shall be entitled to
rely upon the advice, opinions or valuations of any such persons. No member of the Committee nor any executive officer of the Company shall be personally liable for any action, determination or interpretation taken or made in good faith by the
Committee or such executive officer of the Company with respect to the Plan or Awards granted hereunder, and all members of the Committee and each executive officer of the Company shall be fully indemnified and protected by the Company in respect of
any such action, determination or interpretation. 
 Section 4. Eligible Persons. All employees of the Company shall
be eligible to participate in the Plan (“Eligible Persons”). An individual shall be deemed an employee for purposes of the Plan only if such individual receives compensation from either the Company or one of its Business
Units for services performed as an employee of the Company or any one of its Business Units for any period during a Performance Period. An Eligible Person who is a Covered Employee shall be entitled to participate in the Plan with respect to a
Performance Period which has commenced only if he or she commenced employment on or before the beginning of each Performance Period or any later date described in Treasury Regulation 1.162-27(e)(2) (or any successor thereto). 

  
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 Section 5. Awards; Participants. Awards may be granted only to Eligible Persons
with respect to each Performance Period, subject to the terms and conditions set forth in the Plan. An Eligible Person who has been chosen to receive an Award under the Plan shall be referred to as a “Participant.”

 Section 6. Determination of Targets, Performance Thresholds and Base Salary Percentage for Covered Employees.
Prior to the beginning of each Performance Period or any later date described in Treasury Regulation 1.162-27(e) (2) (or any successor thereto), the Committee shall adopt each of the following with respect to each Participant who is a Covered
Employee: 
 (a) one or more Targets, which shall be equal to a desired level or levels (as may be measured on an absolute or
relative basis, where relative performance may also be measured by reference to: past performance of the Company or a Business Unit, a group of peer companies or by a financial market index) for any Performance Period of: specified levels of or
increases in pre-tax earnings, return on capital, equity measures/ratios (on a gross, net, pre-tax or post tax basis), including basic earnings per share, diluted earnings per share, total earnings, operating earnings, earnings growth, earnings
before interest and taxes, or EBIT, and EBITDA; comp sales or non-comp sales; comp sales or sales growth; new store sales; store fundraising initiatives; new store openings; gross margin; inventory shrink; vendor allowances; inventory turns;
inventory levels; distribution center productivity levels; customer service levels; customer or employee satisfaction; employee recruiting and development; number and timing of store construction; visual merchandising initiatives; advertising
effectiveness; number and timing of lease negotiations; development of new markets; financial ratios; strategic initiatives; improvement in or attainment of operating expense levels; improvement in or attainment of capital expense levels; individual
objectives; and any combination of the foregoing (collectively, the “Financial Criteria”). With respect to any Covered Employee who is employed by a Business Unit, the Financial Criteria shall be based on the results of such
Business Unit, results of the Company, or any combination of the two; 
 (b) a Performance Threshold with respect to each
Target, applicable to one or more Financial Criteria, which represents a minimum amount that must be attained for a Participant to receive an Award; 
 (c) either (i) a Base Salary Percentage, or (ii) fixed monetary amounts, which, in each case, shall be payable as an Award in the event that 100% of such Participant’s Targets are achieved.

 (d) a mathematical formula or matrix that shall contain weighting for each Target and indicate the extent to which Awards
will be paid if such Participant’s Performance Thresholds with respect to his or her Targets are achieved or exceeded. 

The Committee shall make such adjustments, to the extent it deems appropriate, to the Targets and Performance Thresholds to compensate
for, or to reflect, any material changes which may have occurred in accounting practices, tax laws, other laws or regulations, the financial structure of the Company, acquisitions or dispositions of Business Units or any unusual circumstances
outside of management’s control which, in the sole judgment of the Committee, 

  
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alters or affects the computation of such Targets and Performance Thresholds or the performance of the Company or any relevant Business Unit (each an “Extraordinary
Event”). Provided however, that no such adjustment may be made unless such adjustment would be permissible under Section 162(m) of the Code. 
 Section 7. Determination of Targets, Performance Thresholds and Base Salary Percentage For Participants Who Are Not Covered Employees. Prior to the end of the Performance Period, the Committee
shall adopt each of the following with respect to each Participant who is not a Covered Employee: 
 (a) one or more Targets,
which shall be equal to a desired level or levels for any Performance Period of any, or a combination of any, quantitative criteria (the “Quantitative Criteria,” which Quantitative Criteria may include, without limitation,
any Financial Criteria) or qualitative criteria (the “Individual Criteria”). With respect to such Participants who are employed by a Business Unit, the Quantitative Criteria may be based on the results of such Business Unit,
consolidated results of the Company, or any combination of the two; 
 (b) a Performance Threshold with respect to each Target,
applicable to one or more Quantitative Criteria or Individual Criteria, which represents a minimum that must be attained for a Participant to receive an Award; 
 (c) either (i) a Base Salary Percentage, or (ii) fixed monetary amounts, which, in each case, shall be payable as an Award in the event that 100% of such Participant’s Targets are achieved.

 (d) a mathematical formula or matrix that shall contain weighting for each Target and indicate the extent to which Awards
will be paid if such Participant’s Performance Thresholds with respect to his or her Targets are achieved or exceeded. 

The Committee may make such adjustments, to the extent it deems appropriate, to the Targets and Performance Thresholds to compensate for,
or to reflect, any material changes which may have occurred due to an Extraordinary Event. 

Section 8. Calculation of Awards; Certification; Payment; Deferral. As soon as practicable after the end
of the Performance Period, and subject to any necessary verification, the Committee shall determine with respect to each Participant whether and the extent to which the Performance Thresholds applicable to such Participant’s Targets were
achieved or exceeded. Such Participant’s Award, if any, shall be calculated in accordance with the mathematical formula or matrix determined pursuant to Section 6 or 7, as applicable, and subject to the limitations set forth in
Section 9 hereof. The Committee shall certify in writing the amount of such Award and whether each material term of the Plan relating to such Award has been satisfied. Subject to Section 9 hereof, such Award shall become payable in cash as
promptly as practicable thereafter, provided, however, that any Award shall be paid within 2  1/2 months of the end of the Fiscal Year in which the Award is no longer subject to a risk of forfeiture. 

  
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 Section 9. Limitations; Modifications to Awards. Each Award determined pursuant
to Section 6 or 7 hereof shall be subject to modification or forfeiture in accordance with the following provisions: 
 (a)
Limitations. The aggregate amount of any Award to any Participant for any Performance Period as finally determined by the Committee, shall constitute the Participant’s Award for the Fiscal Year; provided, however that no Award for any
Participant for any Fiscal Year shall exceed $5,000,000. 
 (b) Modifications. At any time prior to the payment of an
Award, the Committee may, in its sole discretion, (i) increase, decrease or eliminate the Award payable to any Participant who is not a Covered Employee and who would not become a Covered Employee as a result of any such increase and/or
(ii) decrease or eliminate the Award payable to any Covered Employee, in each case to reflect the individual performance and contribution of, and other factors relating to, such Covered Employee. The Committee may make such adjustments, to the
extent it deems appropriate to any Award to compensate for, or to reflect, any Extraordinary Event. The determination of the Committee as to matters set forth in this Section 9(b) shall be final and conclusive. 

Section 10. Employment Requirement. No Participant shall have any right to receive payment of any Award unless such
Participant remains in the employ of the Company or a Business Unit through the date of payment of such Award; provided, however, that the Committee may, in its sole discretion, pay all or any part of an Award to any Participant who,
prior to such date of payment, terminates employment, so long as the Performance Thresholds applicable to the Participant’s Targets were achieved or exceeded, the Committee may, in its sole discretion, provide for payment of all or part of an
award upon any event, to the extent that such provision does not violate Code Section 162(m) with respect to a Covered Employee. The maximum amount of such payment, if any, will be calculated, and to the extent determined by the Committee, paid
as provided in Section 6 or 7. The determination of the Committee shall be final and conclusive. 
 Section 11.
Miscellaneous. 
 (a) No Contract; No Rights to Awards or Continued Employment. The Plan is not a contract between
the Company and any Participant or other employee. No Participant or other employee shall have any claim or right to receive Awards under the Plan. Neither the Plan nor any action taken hereunder shall be construed as giving any employee any right
to be retained by the Company or any of its Business Units. 
 (b) No Right to Future Participation. Participation in the
Plan during one Performance Period shall not guarantee participation during any other Performance Period. 
 (c) Restriction
on Transfer. The rights of a Participant with respect to Awards under the Plan shall not be transferable by the Participant to whom such Award is granted (other than by will or the laws of descent and distribution), and any attempted assignment
or transfer shall be null and void and shall permit the Committee, in its sole discretion, to extinguish the Company’s obligation under the Plan to pay any Award with respect to such Participant. 

(d) Tax Withholding. The Company or a subsidiary thereof, as appropriate, shall have the right to deduct from all payments made
under the Plan to a Participant or to a Participant’s beneficiary or beneficiaries any Federal, foreign, state or local taxes required by law to be withheld with respect to such payments. 

  
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 (e) No Restriction on Right of Company to Effect Changes. The Plan shall not affect
in any way the right or power of the Company or its stockholders to make or authorize any recapitalization, reorganization, merger, acquisition, divestiture, consolidation, spin off, combination, liquidation, dissolution, sale of assets, or other
similar corporate transaction or event involving the Company or a subsidiary thereof or any other event or series of events, whether of a similar character or otherwise. 
 (f) Source of Payments. The Plan shall be unfunded. The Plan shall not create or be construed to create a trust or separate fund or segregation of assets of any kind or a fiduciary relationship
between the Company and a Participant or any other individual, corporation, partnership, association, joint-stock company, trust, unincorporated organization, or government or political subdivision thereof. To the extent that any Participant is
granted an Award hereunder, such Participant’s right to receive payment of such Award shall be no greater than the right of any unsecured general creditor of the Company. 
 (g) No Interest. If the Company for any reason fails to make payment of an Award at the time such Award becomes payable, the Company shall not be liable for any interest or other charges thereon.

 (h) Amendment and Termination. The Committee may at any time and from time to time alter, amend, suspend or terminate
the Plan in whole or in part. No such amendment shall be effective which alters the Award, Target or other criteria relating to an Award applicable to a Covered Employee for the Performance Period in which such amendment is made or any prior
Performance Period, except any such amendment that may be made without causing such Award to cease to qualify as performance-based compensation under Section 162(m)(4)(C) of the Code. 

(i) Headings. The headings of sections and subsections herein are included solely for convenience of reference and shall not
affect the meaning of any of the provisions of the Plan. 
 (j) Governing Law. The validity, construction,
interpretation, administration and effect of the Plan and of its rules and regulations, and rights relating to the Plan, shall be determined solely in accordance with the laws of the Commonwealth of Pennsylvania, without regard to the choice-of-law
principles thereof, and applicable federal law. 
 (k) Severability. If any term or provision
(“Provision”) of the Plan or the application thereof (i) as to any Participant or circumstance (other than as described in clause (ii)) is, to any extent, found to be illegal or invalid, or (ii) would cause any
Award to any Covered Employee not to constitute performance-based compensation under Section 162(m)(4)(C) of the Code, then the Committee shall sever such Provision from the Plan and, thereupon, such Provision shall not be a part of the Plan.

 (l) Effective Date. The Plan shall be effective as of
[                 , 2012]; subject to the approval of the stockholders of the Company (the “Stockholders”). Such approval shall meet the
requirements of Section 162(m) of the Code and the regulations thereunder. If such approval is not obtained, then the Plan shall not be effective. 

  
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 (m) Approval and Reapproval by Stockholders. To the extent required under
Section 162(m) of the Code and the regulations thereunder, (i) any change to the material terms of the Financial Criteria shall be disclosed to and approved by the Stockholders at the next annual meeting of Stockholders to be held
following such change, and (ii) the material terms of the Financial Criteria shall be disclosed to and reapproved by the Stockholders no later than the annual meeting of Stockholders that occurs in the fifth year following the year in which
Stockholders approve the Financial Criteria (provided, however, that with respect to the first year in which the Company becomes publicly traded, such disclosure will be made and approval will be sought no later than first Annual Meeting of
Stockholders that occurs after the third year following the calendar year in which the Company became publicly traded). 

  
 -7-Letter Employment Agreement - David Johnston

 Exhibit 10.33 
 May 16, 2012 
 David Johnston 

 

	 	Re:	Your Employment Offer 

 Dear David:

 On behalf of Five Below, Inc. (the “Company”), I am proud to extend you an offer to join our Company as Chief
Operating Officer. In that position, you will be an integral part of our team. You will report to Tom Vellios. Your anticipated start date is Monday, June 4th, 2012 and you will be working in the Company’s Philadelphia, Pennsylvania headquarters. Your offer of employment
is expressly conditioned on your signing and returning this letter and the attached Non-Disclosure Agreement. 
 Your annual base salary will
initially be $400,000, which will be paid every other week, less payroll deductions and all required withholdings. The first of the month following ninety days of employment, you will be eligible to participate in the health benefit plans that the
Company sponsors for the benefit of its employees and their families in accordance with the terms and conditions of such plans. These benefits include: health, dental, vision, life insurance, and short and long term disability. A full benefits
outline will be forwarded to you under a separate cover. You will receive three weeks of vacation during the first vacation year (May 1- April 30) and each year thereafter, pro-rated for the portion of the year that you are employed. The
Company may modify your compensation and benefits from time to time, as it deems necessary. 
 Upon execution of this offer letter and the
Non-Disclosure Agreement attached hereto and the commencement of your employment with the Company, you will be eligible for the following additional items of compensation: 

 

	 	•	 	 Stock Options. Subject to the terms of your option agreement, the Company’s stock option plan, and Board approval, you will be
granted a non-qualified stock option to purchase 500,000 shares of common stock of the Company effective on the date your employment commences, which vest over a 4 year period. The per share exercise price of the options will be the greater of
(a) the per share fair market value of our common stock as determined by the Board as of the effective date of the grant, and (b) the per share price to the public of our common stock in the IPO for which we filed a registration statement
with the SEC on April 18, 2012, provided the IPO closes on or before September 30, 2012. If the IPO has not closed on or before September 30, 2012, the per share exercise price of your options will be fixed at the price in clause
(a) of the preceding sentence. Of these options, 50% will vest on the second anniversary of your commencement date, and 6.25% will vest at the end of each of the succeeding eight calendar quarters, subject to your continued employment in good
standing on such dates. 

 In addition, we will recommend to our Board that it authorize our understanding
that you will be granted a non-qualified stock option to purchase an additional 100,000 shares of our common stock on each of the first and second anniversaries of your commencement date, subject to your continued employment in good standing on

  
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those dates. The per share exercise price of those options will be the per share fair market value of our common stock on the applicable grant date. The vesting terms of these options will be
consistent with other options granted by us at or about the time of the grant dates. 
 The options will otherwise be on terms
and conditions generally applicable to our other stock options at the time of grant. 
 As you know, we are contemplating a
reverse stock split in connection with our IPO. The share numbers of the initial 500,000 share grant as well as any subsequent 100,000 share grant assumes the pre-IPO share base and will therefore be adjusted equitably in connection with the reverse
stock split (e.g. if the shares have a 2 for 1 reverse spit the initial grant would be adjusted to 250,000 shares), as will the per share exercise price, if it is set before the reverse stock split. 

 

	 	•	 	 Bonus: You will be eligible for a maximum potential annual bonus of 75% of your salary, as part of Five Below’s Executive Incentive
Bonus plan for 2012. The amount of the bonus will depend on a combination of various measures including achieving Company financial goals (such as sales and cash flow performance). To be eligible to receive the annual performance bonus, you must be
actively employed on the date the bonus is paid. 

  

	 	•	 	 Severance. If, your employment is terminated by Five Below without “Cause” (other than within twelve months after a change in
control) you will be entitled to salary and health benefit continuation for six months following your date of termination (less any amounts earned by you during such six month period). If, however, your employment is terminated by Five Below without
“Cause” within the twelve month period following a change in control, you will be entitled to salary and health benefit continuation for twelve months following your date of termination (less any amounts earned by you during such twelve
month period). The severance payments referenced in this paragraph will be conditioned on your execution of a Release and Non-Disparagement Agreement in a form acceptable to the Company, which becomes effective within 60 days of your termination of
employment. You will not be entitled to any severance payments if you voluntarily terminate your employment with the Company, regardless of the reason. 

 The severance benefits will begin to be paid as soon as practicable after the Release and Non-Disparagement Agreement becomes irrevocable; provided, however, that if the 60-clay period described in the
previous paragraph begins in one taxable year and ends in a second taxable year, such payments and other rights shall not commence until the second taxable year. Notwithstanding anything in this letter to the contrary, all payments to be made upon a
termination of employment under this letter will only be made upon a “separation from service” within the meaning of Section 409A of the Code. To the maximum extent permitted under Section 409A of the Code and its corresponding
regulations, the cash severance benefits payable under this letter are intended to meet the requirements of the short-term deferral exemption under Section 409A of the Code and the “separation pay exception” under Treas. Reg. §
1.409A-l(b)(9)(iii). For purposes of the application of Treas. Reg. § 1.409A-l(b)(4) (or any successor provision), each payment in a series of payments to you will be deemed a separate payment. With respect to any expense, reimbursement or
in-kind benefit provided pursuant to this letter that constitutes a “deferral of compensation” within the meaning of Section 409A of the Code and its implementing regulations and guidance, (a) the expenses eligible for reimbursement or
in-kind benefits provided to you must be incurred during the term of your employment, (b) the amount of expenses eligible for reimbursement or in-kind benefits provided to you during any calendar year will not affect the amount of expenses eligible
for reimbursement or in-kind benefits provided to you in any other calendar year, (c) the reimbursements for expenses for which you are entitled to be reimbursed shall be made on or before the last day of the calendar year following the calendar
year in which the applicable expense is incurred and (d) the right to payment or reimbursement or in-kind benefits hereunder may not be liquidated or exchanged for any other benefit. 
 For purposes of the above, the term “Cause” shall be defined as (i) alcohol abuse or use of controlled drugs (other than in accordance with a physician’s prescription); (ii) gross
negligence or willful misconduct in the course of employment as determined in the Company’s discretion (failure to meet performance standards or objectives, by itself, does not constitute Cause); (iii) any breach of any obligation or duty
to the Company or any of its affiliates (whether arising by statute, common law, contract or otherwise) relating to confidentiality, noncompetition, non-solicitation or property rights; (iv) other conduct involving any type of disloyalty to the
Company or any of its affiliates, including, without limitation, fraud, embezzlement, theft or proven dishonesty; and (v) conviction of (or the entry of a plea of guilty or nolo contendere to) a misdemeanor involving moral turpitude or any
felony. 
 You will be an “at-will” employee who can resign or terminate your employment with the Company at any time. Likewise, the
Company may terminate your employment at any time and for any reason whatsoever, with or without “Cause” or advance notice. This at-will employment relationship cannot be changed except as approved in writing by a duly authorized Company
officer. 
 As a Company employee, you will be expected to abide by the Company rules and regulations. In addition, in consideration of your
employment, you agree to sign and comply with the Non- 

  
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 Disclosure Agreement attached hereto as Exhibit A. By executing this letter, you represent that you
will not be prevented from performing any of your duties for the Company as a result of any agreement with or other contractual or statutory obligation to (including, without limitation, any non-competition, proprietary information or
confidentiality agreement) any prior employer. 
 This letter, together with Exhibit A, forms the complete statement of your agreement with the
Company. The terms in this letter supersede any other agreements or promises made to you by anyone, whether oral or written. As required by law, this offer is subject to satisfactory proof of your right to work in the United States. 

We are excited about working with you and having you as part of our team. If you have any questions regarding this offer, please call me. 

If acceptable, please countersign and date this letter in the space provided below and return the original of this letter and Exhibit A to me.

 Sincerely, 
 /s/ Kenneth R. Bull 
 Kenneth R. Bull 

Chief Financial Officer 
 Attachment 
 I have read and understand the terms of this employment offer and I accept this offer
as presented: 
  

					
	/s/ David Johnston	  		 	May 16, 2012
	David Johnston	  		 	Date

  
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 FIVE BELOW, INC. 

NON-SOLICITATION, NON-DISCLOSURE, NON-COMPETE AND 
 PROPRIETARY INFORMATION AGREEMENT 
 As a condition of my employment with
Five Below, Inc., its subsidiaries, affiliates, successors or assigns (together the “Company”), and in consideration of my employment with the Company and my receipt of the past, present and future compensation paid to me by
Company, I agree to the following: 
 1. Proprietary Information 
 1.1. I agree that all information, whether or not in writing, of a private, secret or confidential nature concerning the Company’s business, business relationships or financial affairs (collectively,
“Proprietary Information”) is and shall be the exclusive property of the Company. By way of illustration, but not limitation, Proprietary Information may include (a) documents which are prepared by you, including all
correspondence, memoranda, notes, summaries, analyses, studies, models, extracts of and documents and records reflecting, based on or derived from Proprietary Information as well as all copies and other reproductions thereof, whether in writing or
stored or maintained in or by electronic, magnetic or other means, media or devices (all such documents and writings which are prepared by you are sometimes referred to herein as “Evaluation Documents”); (b) inventions, products,
processes, methods, techniques, projects, developments, plans, research data, financial data, personnel data, computer programs, customer and supplier lists, and contacts at or knowledge of customers or prospective customers of the Company; and
(c) shall not include information which is or becomes generally available to the public other than as a result of a disclosure by you. 
 1.2. I have not and will not disclose any Proprietary Information to any person or entity other than other employees of the Company nor have I used or will I use the same for any purposes (other than in
the performance of my duties as an employee of the Company) without written approval by an officer of the Company, either during or after my employment with the Company, unless and until such Proprietary Information has become public knowledge
through no fault of my own. 
 1.3. I agree that all files, letters, memoranda, reports, records, data, sketches, drawings,
laboratory notebooks, program listings, or other written, photographic, or other tangible material containing Proprietary Information, whether created by me or others, which have or shall come into my custody or possession, shall be and are the
exclusive property of the Company to be used by me only in the performance of my duties for the Company. All such materials or copies thereof and all tangible property of the Company in my custody or possession shall be delivered to the Company,
upon the earlier of (i) a request by the Company or (ii) termination of my employment. After such delivery, I shall not retain any such materials or copies thereof or any such tangible property. 

1.4. I agree that my obligation not to disclose or to use information and materials of the types set forth in Sections 1.1 and 1.2 above,
and my obligation to return 

 
materials and tangible property, set forth in paragraph 1.2 above, also extends to such types of information, materials and tangible property of customers of the Company or suppliers to the
Company or other third parties who may have disclosed or entrusted the same to the Company or to me. 
 1.5. I agree that for a
period of one (1) year from the date of the termination of my engagement by the Company for any reason, I will not, either directly or indirectly, on my own behalf or in the service of, together with, or on behalf of any other person engage or
participate, or provide any service to any person that is engaged or plans to engage, in any business that (i) is directly competitive with the Business, (ii) sells at retail product or products at fixed price points of $10 (or integral
multiples thereof) or less, or any combination of one or more price points of $10 (or integral multiples thereof) or less (including without limitation the retailer Planet Ten), (iii) sells at retail product or products at fixed priced points
of $1 (or integral multiples thereof) or less (including without limitation the retailer Dollar Tree), or (iv) devotes a majority of its sales area to the retail sale of party goods or is known as a party store (including without limitation
Party City and Factory Card Outlet). 
 2. Developments. 
 2.1. If at any time or times during my employment, including, without limitation, prior to the date of my execution of this agreement, I have (either along or with others) made, conceived, created,
discovered, invented or reduced to practice, or I shall (either alone or with others) make, conceive, create, discover, invent or reduce to practice, any invention, modification, discovery, design, development, improvement, process, software
program, work of authorship, documentation, formula, data, technique, know-how, trade secret or intellectual property right whatsoever or any interest therein (whether or not patentable or registrable under copyright, trademark or similar statutes
or subject to analogous protection) (hereinafter, “Developments”) that (i) relates to the business of the Company or any customer of or supplier to the Company in connection with such customer’s or supplier’s
activities with the Company or any of the products or services being developed, manufactured or sold by the Company or which may be used in relation therewith, (ii) results (or resulted) from tasks assigned to me by the Company or
(iii) results (or resulted) from the use of premises or personal property (whether tangible or intangible) owned, leased or contracted for by the Company, such Developments and the benefits thereof are and/or shall immediately become the sole
and absolute property of the Company and its assigns, as works made for hire or otherwise, and I shall promptly disclose to the Company (or any persons designated by it) each such Development and, as may be necessary to ensure the Company’s
ownership of such Developments, I hereby assign any right, title and interest (including, but not limited to, any copyrights and trademark rights) in and to the Developments and benefits and/or rights resulting therefrom to the Company and its
assigns without further compensation and shall communicate, without cost or delay, and without disclosing to others the same, all available information relating thereto (with all necessary plans and models) to the Company. 

 2.2. I will, during my employment and at any time thereafter, at the request and cost of the
Company, promptly sign, execute, make and do all such deeds, documents, acts and things as the Company and its duly authorized agents may reasonably require: (i) to apply for, obtain, register and vest in the name of the Company alone (unless
the Company otherwise directs) letters patent, copyrights, trademarks or other analogous protection in any country throughout the world and when so obtained or vested to renew and restore the same; and (ii) to defend any judicial, opposition or
other proceedings in respect of such applications and any judicial, opposition or other proceedings or petitions or applications for revocation of such letters patent, copyright, trademark or other analogous protection. 

3. Conflicting Employment and Non-Competition. I agree that, during the term of my employment with the Company that I will not engage in any
activities that conflict with my obligations to the Company. 
 4. Solicitation of New Employees. I agree that for a period of twelve
(12) months immediately following the termination of my relationship with the Company, I shall not either directly or indirectly solicit, induce recruit or encourage any of the Company’s employees to leave their employment or take away
such employees, or attempt to solicit, induce, recruit, encourage to take away employees of the Company, either for myself or for any other person or entity. 
 5. Equitable Remedies. I agree that it would be impossible or inadequate to measure and calculate the Company’s damages from any breach of the covenants set forth in Sections 1, 2, 3 and 4
herein. Accordingly, I agree that if I breach any of such Sections, the Company will have available, in addition to any other right or remedy available, the right to obtain an injunction from a court of competent jurisdiction restraining such breach
or threatened breach and to specific performance of any such provision of this Agreement I further agree that no bond or other security shall be required in obtaining such equitable relief and, I hereby consent to the issuance of such injunction and
to the ordering of specific performance. It is understood that any failure or delay by the Company in exercising any right, power or privilege hereunder shall not operate as a waiver thereof, nor shall any single or partial exercise of any right,
power or privilege hereunder preclude any other or further exercise thereof. In the event that the Company is the prevailing party in any action or proceeding under this letter agreement, then you shall pay all costs and expenses incurred by the
Company in connection therewith (including, without limitation, reasonable attorney’s fees). 
 6. Miscellaneous. 

6.1. Governing Law. This Agreement will be governed by the laws of the Commonwealth of Pennsylvania. 

6.2. Entire Agreement. This Agreement sets forth the entire agreement and understanding between the Company and me relating to the
subject matter herein and merges all prior discussions and agreements between us. No modification of or amendment to the Agreement, nor any waiver of any rights under this Agreement, will be 

 
effective unless in writing signed by the party to be charged. Any subsequent change or changes in my duties, salary or compensation will not affect the validity or scope of this Agreement. If
any court determines that any provision of this agreement is unenforceable because of its duration or geographic scope or otherwise, then that court will have the power to modify such provision and, in its amended form, such provision will then be
enforceable 
 6.3. Severability. If one or more of the provisions in this Agreement are deemed void by law, then the
remaining provisions will continue in full force and effect. 
 6.4. Successors and Assigns. This Agreement will be
binding upon my heirs, executors, administrators and other legal representatives and will be for the benefit of the Company, its successors, and its assigns. 
 6.5. Acknowledgement. By executing this agreement, you are acknowledging that you have been provided with ample time to carefully review each of the provisions of this letter agreement and to
consult with counsel of your choice, and that you fully understand each of the provisions of this agreement. 
 6.6.
Counterparts. This letter agreement may be executed and delivered by facsimile signature in two or more counterparts, each of which shall constitute an original instrument and all of which, together, shall constitute the same letter
agreement. 
  

			
	ACCEPTED AND AGREED:
	
	 /s/ David Johnston

	Name:	 	David Johnston
	Date:	 	May 16, 2012

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