Document:

amco20150324_8k.htm

 

Exhibit 10.31

 

EMPLOYMENT AGREEMENT

 

This EMPLOYMENT AGREEMENT (“Agreement”), dated as of March 19, 2015, is made by and among ARMCO METALS HOLDINGS, INC., a corporation organized under the laws of the State of Nevada (the “Company”), and Kexuan Yao (the “Executive”). Each of the Company and the Executive are referred to herein individually as a “Party” and collectively as the “Parties.”

 

RECITALS:

 

WHEREAS, the Company and the Executive were a party to that certain Employment Agreement dated February 8, 2012 (the "Prior Employment Agreement") pursuant to which the Company employed the Executive as President and Chief Executive Officer.

 

WHEREAS, the term of the Prior Employment Agreement expired on December 31, 2014.

 

WHEREAS, the Company wishes to employ the Executive as its President and Chief Executive Officer, and the Executive wishes to accept such employment, on the terms set forth below, effective as of January 1, 2015 (“Effective Date”).

 

NOW, THEREFORE, in consideration of the foregoing premises, and the covenants, representations and warranties set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged and accepted, the Parties, intending to be legally bound, hereby agree as follows:

 

1.             Term. The Company hereby employs the Executive, and the Executive hereby accepts such employment, for an term commencing as of the Effective Date and continuing through December 31, 2015, unless sooner terminated in accordance with the provisions of Section 5 hereof (The period during which the Executive is employed hereunder being hereinafter referred to as the “Term”).

 

2.             Duties. During the Term, the Executive shall be employed by the Company as its President and Chief Executive Officer, reporting directly to the Board of Directors of the Company (the “Board”). The Executive shall devote his entire working time, energy, attention, skill and best efforts to the affairs of the Company and to the faithful performance of the duties of said offices and shall faithfully perform such other duties of an executive, managerial or administrative nature as shall be specified and designated from time to time by the Company’s Board, except that the Executive shall have a right to serve on the Board of Directors of not-for-profit organizations and with the consent of the independent members of the Board, have ownership interest, direct or indirect, of not more than 4.9% of the issued and outstanding stock in public companies that may compete with the Company.

 

3.             Place of Performance. Executive shall be based at the office of the Company in Shanghai, except for travel required for Company business. In the event the Board of the Company deems it in the best interest of the Company that its head corporate office be located in the United States, Executive agrees to move to such office as promptly as possible thereafter.

 

4.             Compensation.

 

(a)     Base Salary. The Company shall pay the Executive a salary of $250,000 per annum for the period beginning on the Effective Date through December 31, 2015 (the “Base Salary”). Base Salary shall be payable in accordance with the customary payroll practices of the Company applicable to senior executives. 

 

 

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(b)     Bonus. During the Term, in addition to the Base Salary and at the sole discretion of the Company, the Executive may be entitled to an annual cash bonus in an amount up to 50% of the Executive’s Base Salary for the year. If awarded, any such bonus shall be payable no later two and one-half (2 1⁄2) months following the year with respect to which the Base Salary is payable. The determination to award any bonus and the amount thereof shall be made by the Compensation Committee of the Board of Directors in its sole discretion. Nothing contained in the foregoing shall limit the Executive’s eligibility to receive any other bonus under any other bonus plan, stock option or equity-based plan, or other policy or program of the Company, as the same may be approved by the Compensation Committee and in accordance with any stockholder approval incentive plan in effect at the time of such decision, or otherwise obligate the Compensation Committee to grant the Executive any additional bonuses.

 

(c)     Restricted Shares. On the Effective Date, Executive shall receive 60,000 shares of the Company’s common stock (“Restricted Shares”) subject to the terms and conditions of the Amended and Restated 2009 Stock Incentive Plan, as amended (the "Incentive Plan"). The Restricted Shares shall vest according to Vesting Schedule attached hereto as Exhibit A; provided, however, if the Executive is terminated pursuant to Section 5 of this Agreement, the Executive shall forfeit all the unvested Restricted Shares as of such termination. The parties hereto acknowledge that in no event shall the Executive receive any grants under the Incentive Plan in excess of the limitations set forth in Section 6.2 of the Incentive Plan.

 

(d)     Benefits. The Executive shall be permitted during the Term to participate in any group life, hospitalization or disability insurance plans, health programs, retirement plans, fringe benefit programs and other benefits that may be available to other senior executives of the Company generally, in each case to the extent that the Executive is eligible under the terms of such plans or programs. Any benefits such as group life, hospitalization, disability insurance plans, health programs, retirement plans, fringe benefits, and other benefits shall be payable no later than two and one-half (2 1⁄2) months of the following year in which the benefit is granted.

 

(e)     Vacation. The Executive shall be entitled to vacation of no less than 25 business days per year, to be credited in accordance with ordinary Company policies.

 

(f)     Expenses. The Company shall pay or reimburse the Executive for all ordinary, necessary, and reasonable out-of-pocket expenses actually incurred for a business purpose (and, in the case of reimbursement, paid) by the Executive during the Term in the performance of the Executive’s services under this Agreement in accordance with the Company’s policies regarding such reimbursements The Company shall not be obligated to reimburse the Executive for such amounts until the Executive has presented the Company with documentation of such expenses. The reimbursements will occur no later than two and one-half (2 1⁄2) months after the taxable year in which the expense was incurred.

 

(g)     Work Permits/Visas/United States Permanent Resident Card; Tax Matters. The Company shall pay or reimburse the Executive for any expenses, including reasonable attorneys fees and expenses, actually incurred (and, in the case of reimbursement, paid) by the Executive, up to a maximum of $10,000, in connection with: (i) obtaining the proper work permits and/or visas and/or United States Permanent Resident Card necessary for the Executive to provide services hereunder in the United States; and (ii) the preparation of the Executive’s and his spouse’s (if applicable) United States income tax returns as required by law.

 

 

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(h)     Life Insurance. The Company shall use best efforts to reimburse the Executive the amount of the premiums paid by the Executive on a term life policy for the benefit of the Executive or the Executive’s designated beneficiaries with a death benefit of $2 million. The reimbursements will occur no later than two and one-half (2 1⁄2) months after the taxable year in which the premium amount was incurred. The Company shall not be obligated to reimburse the Executive for such amounts until the Executive has presented the Company with a statement documenting such payments.

 

(i)     Key Man Insurance. The Company will purchase on the life of the Executive up to $50 million of key man life insurance with the Company as the beneficiary of the death benefit.

 

5.            Termination of Employment; Change of Control.

 

(a)     Termination upon Death or Disability. This Agreement and Executive’s employment hereunder shall automatically terminate on the date on which Executive dies or becomes permanently incapacitated. Executive shall be deemed to have become “permanently incapacitated” on the date that is thirty (30) days after the Company has determined that Executive has suffered a Permanent Incapacity (as defined below) and so notifies Executive. For purposes of this Agreement, “Permanent Incapacity” shall mean that (i) Executive is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months; or (ii) Executive is, by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months, receiving income replacement benefits for a period of not less than three (3) months under an accident and health plan (if any) covering employees of the Company. 

 

(b)     Termination by the Company for Cause. The Company may terminate this Agreement and Executive’s employment hereunder with Cause (as defined below), effective upon delivery of written notice to Executive given at any time during the Term (without any necessity for prior notice). For purposes of this Agreement, “Cause” shall mean the Executive’s: (i) conviction of any felony or any other crime involving moral turpitude, (ii) fraud against the Company or any of its subsidiaries or affiliates or theft of or maliciously intentional damage to the property of the Company or any of their subsidiaries or affiliates, (iii) willful breach of Executive’s fiduciary duties to the Company, or (iv) breach by Executive of any provision of this Agreement.

 

(c)     Termination by Company without Cause. The Company may terminate this Agreement and Executive’s employment hereunder without Cause, effective upon delivery of written notice to Executive given at any time during the Term (without any necessity for prior notice) provided that the Company complies with all provisions of this Agreement, including without limitation, obligations related to severance, vesting of options and continuation of benefits as set forth herein.

 

(d)     Termination by the Executive for Good Reason. The Executive may terminate this Agreement and Executive’s employment hereunder with Good Reason (as defined below). For purposes of this Agreement, “Good Reason” shall mean (i) the material reduction of the Executive’s title, authority, duties and responsibilities or the assignment to the Executive of duties materially inconsistent with the Executive’s position or positions with the Company; (ii) a material reduction in Base Salary of the Executive, other than a temporary reduction mutually agreed to by the executive and the Chairman of the Compensation Committee; (iii) the Company’s material breach of this Agreement; or (iv) any change in the geographic location, other than to the United States as contemplated herein, at which Executive must perform the services under this Agreement, which change is reasonably material to Executive. Notwithstanding the foregoing, (x) Good Reason shall not be deemed to exist unless notice of termination on account thereof (specifying a termination date no later than thirty (30) days from the date of such notice) is given no later than thirty (30) days after the time at which the event or any condition purportedly giving rise to Good Reason first occurs or arises and (y) if there exists (without regard to this clause (y)) an event or condition that constitutes Good Reason, the Company shall have fifteen (15) days from the date notice of such a termination is given to cure such event or condition and, if the Company does so, such event or condition shall not constitute Good Reason hereunder.

 

 

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(e)     Termination by the Executive other than for Good Reason. The Executive may terminate this Agreement and Executive’s employment hereunder other than for Good Reason, provided that the Executive gives the Company no less than thirty (30) days prior written notice of such termination.

 

(f)     Change of Control. The Executive may terminate this Agreement and Executive’s employment hereunder within the one (1) year period following a Change of Control (as defined below), provided that the Executive gives the Company no less than thirty (30) days prior written notice of such termination. For purposes of this Agreement, “Change of Control” shall mean the occurrence of any of the following:

 

(i).      Change in Ownership. A change in ownership of the Company occurs on the date that any one person, or more than one person acting as a group, acquires ownership of stock of the Company that, together with stock held by such person or group, constitutes more than fifty percent (50%) of the total fair market value or total voting power of the stock of the Company, excluding the acquisition of additional stock by a person or more than one person acting as a group who is considered to own more than fifty percent (50%) of the total fair market value or total voting power of the stock of the Company.

 

(ii).     Change in Effective Control. A change in effective control of the Company occurs on the date that either: (A) any one person, or more than one person acting as a group, acquires (or has acquired during the twelve (12) month period ending on the date of the most recent acquisition by such person or persons) ownership of stock of the Company possessing forty percent (40%) or more of the total voting power of the stock of the Company; or (B) a majority of the members of the Company’s Board is replaced during any twelve (12) month period by directors whose appointment or election is not endorsed by a majority of the members of the Company’s Board prior to the date of the appointment or election; provided, however, that this paragraph (ii) will apply to the Company only if no other corporation is a majority stockholder of the Company.

 

(iii).    Change in Ownership of Substantial Assets. A change in the ownership of a substantial portion of the Company’s assets occurs on the date that any one person, or more than one person acting as a group, acquires (or has acquired during the twelve (12) month period ending on the date of the most recent acquisition by such person or persons) assets from the Company that have a total gross fair market value equal to or more than forty percent (40%) of the total gross fair market value of the assets of the Company immediately prior to such acquisition or acquisitions. For this purpose, “gross fair market value” means the value of the assets of the Company, or the value of the assets being disposed of, determined without regard to any liabilities associated with such assets.

 

(iv).    Intended Interpretation. It is the intent of the Parties that the definition of Change in Control under this Agreement be construed consistent with the definition of “Change in Control” as defined in Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”) and the applicable Treasury Regulations, as amended from time to time.

 

6.             Payments Upon Termination. 

 

 

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(a)     Upon termination of this Agreement and Executive’s employment hereunder due to Executive’s death or disability pursuant to Section 5(a) hereof, (i) the Executive (or the Executive’s estate or beneficiaries in the case of the death of the Executive) shall be entitled to receive any Base Salary and other benefits (including any bonus for a calendar year completed before termination) earned and accrued under this Agreement prior to the date of termination (and reimbursement under this Agreement for expenses incurred prior to the date of termination) and (ii) the Executive (or the Executive’s estate or beneficiaries in the case of the death of the Executive) shall have no further rights to any other compensation or benefits hereunder, or any other rights hereunder (but, for the avoidance of doubt, shall receive such disability and death benefits as may be provided under the Company’s plans and arrangements in accordance with their terms).

 

(b)     Upon termination of this Agreement and Executive’s employment hereunder by the Company for Cause pursuant to Section 5(b) hereof or by Executive other than for Good Reason pursuant to Section 5(e) hereof, (i) the Company shall pay to Executive an amount equal to Executive’s then Base Salary and other benefits (including any bonus for a calendar year completed before termination) earned and accrued under this Agreement prior to the date of termination (and reimbursement under this Agreement for expenses incurred prior to the date of termination) and (ii) the Executive shall have no further rights to any other compensation or benefits under this Agreement on or after the termination of employment.

 

(c)     Upon termination of this Agreement and Executive’s employment hereunder by the Company without Cause pursuant to Section 5(c) hereof, by Executive for Good Reason pursuant to Section 5(d) hereof or by Executive following a Change in Control of the Company pursuant to Section 5(f) hereof, (i) the Company shall pay to Executive (A) an amount equal to Executive’s then Base Salary and other benefits (including any bonus for a calendar year completed before termination) earned and accrued under this Agreement prior to the date of termination (and reimbursement under this Agreement for expenses incurred prior to the date of termination); and (B) an amount equal to two (2) times the average of the Base Salary amounts paid to Executive over the three (3) calendar years prior to the date of termination, (ii) all unvested Restricted Shares shall vest immediately upon the termination; and (iii) the Executive shall have no further rights to any other compensation or benefits under this Agreement on or after the termination of employment. 

 

(d)     Unless the payment is required to be delayed pursuant to Code Section 409A (as defined below), the cash amounts payable to the Executive (or the Executive’s estate or beneficiaries in the case of the death of the Executive) under this Section 6 shall be paid to the Executive (or the Executive’s estate or beneficiaries in the case of the death of the Executive) in a single-sum payment within sixty (60) days following the effective date of termination of this Agreement and Executive’s employment hereunder.

 

7.             Parachutes. If any amount payable to or other benefit receivable by the Executive pursuant to this Agreement would be deemed to constitute a Parachute Payment (as defined below), alone or when added to any other amount payable or paid to or other benefit receivable or received by the Executive which is deemed to constitute a Parachute Payment (whether or not under an existing plan, arrangement or other agreement), and would result in the imposition on the Executive of an excise tax under Section 4999 of the Code, then the Parachute Payments shall be reduced (but not below zero) so that the maximum amount of the Parachute Payments (after reduction) shall be one dollar ($1.00) less than the amount which would cause the Parachute Payments to be subject to the excise tax imposed by Section 4999 of the Code. Any such reduction shall be made by first reducing severance benefits (if any). Notwithstanding the foregoing, if the reduction of Parachute Payments under this Section 7 would be equal to or greater than $50,000, then there shall be no such reduction and the full amount of the Parachute Payment shall be payable. “Parachute Payment” shall mean a “parachute payment” as defined in Section 280G of the Code. The calculation under this Section 7 shall be as determined by the Company’s independent accountants, or such other experts as the Chairman of the Compensation Committee shall deem appropriate.

 

 

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8.             Execution of Release. The Executive acknowledges that, if required by the Company prior to making the payments and benefits set forth in Section 5 (other than accrued but unpaid Base Salary and other benefits), all such payments and benefits are subject to his execution of a general release from liability of the Company, each member of its Board, and each of the Company's officers (including his successor) and employees, and such release becoming irrevocable by its terms. If Executive fails to execute such release, or such release does not become irrevocable, all such payments and benefits set forth in Section 6 hereof shall be forfeited.

 

9.             Application of Code Section 409A.

 

(a)     This Agreement shall be interpreted to avoid any penalty sanctions under Section 409A of the Code (“Code Section 409A”). If any payment or benefit cannot be provided or made at the time specified herein without incurring sanctions under Code Section 409A, then such benefit or payment will be provided in full (to the extent not paid in part at earlier date) at the earliest time thereafter when such sanctions will not be imposed. For purposes of Code Section 409A, all payments to be made upon a termination of employment under this Agreement may only be made upon Executive’s “separation from service” (within the meaning of such term under Code Section 409A) with the Company, each payment made under this Agreement will be treated as a separate payment, and the right to a series of installment payments under this Agreement will be treated as a right to a series of separate payments. In no event will Executive, directly or indirectly, designate the calendar year of payment, except as permitted under Code Section 409A.

 

(b)     Notwithstanding anything herein to the contrary, if, at the time of Executive’s “separation from service” with the Company, the Company has securities which are publicly traded on an established securities market and Executive is a “specified employee” (as such term is defined in Code Section 409A) and it is necessary to postpone the commencement of any payments or benefits otherwise payable under this Agreement as a result of such termination of employment to prevent any accelerated or additional tax under Code Section 409A, then the Company will postpone the commencement of the payment of any such payments or benefits hereunder (without any reduction in such payments or benefits ultimately paid or provided to Executive), until the first payroll date that occurs after the date that is six (6) months following Executive’s “separation of service” with the Company. If any payments are postponed due to such requirements, such postponed amounts will be paid with interest at the applicable federal rate as provided under Section 7872(f)(2)(A) of the Code in a lump sum to Executive on the first payroll date that occurs after the date that is six (6) months following Executive’s “separation of service” with the Company. If Executive dies during the postponement period prior to the payment of the postponed amount, the amounts withheld on account of Code Section 409A will be paid to the personal representative of Executive’ s estate within sixty (60) days after the date of Executive’s death. Payments pursuant to Section 6 of this Agreement are intended to satisfy the short-term deferral exception under Code Section 409A.

 

(c)     All reimbursements and in-kind benefits provided under this Agreement will be made or provided in accordance with the requirements of Code Section 409A, including, where applicable, the requirement that (i) any reimbursement will be for expenses incurred during Executive’s lifetime (or during a shorter period of time specified in this Agreement), (ii) the amount of expenses eligible for reimbursement, or in kind benefits provided, during a calendar year may not affect the expenses eligible for reimbursement, or in kind benefits to be provided, in any other calendar year, (iii) the reimbursement of an eligible expense will be made on or before the last day of the calendar year following the year in which the expense is incurred, and (iv) the right to reimbursement or in kind benefits is not subject to liquidation or exchange for another benefit.

 

 

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(d)     To the extent applicable, all grants, awards, bonuses or other payments made to Executive or for which Executive is eligible under any Company bonus, incentive, deferred compensation plan or program or any other compensation arrangement will be structured to comply with the requirements of Code Section 409A or an exception from such requirements.

 

10.           Covenants of the Executive.

 

(a)     Confidentiality. During the Term, the Company has and will continue to provide Executive with access to, and may confide in him, information, business methods and systems, techniques and methods of operation developed at great expense by the Company and which are assets of the Company. Executive recognizes and acknowledges that: (i) all Confidential Information (defined below) is the property of the Company and is unique, extremely valuable and developed and acquired by great expenditures of time, effort and cost; (ii) the misuse, misappropriation or unauthorized disclosure by Executive of the Confidential Information would constitute a breach of trust and would cause serious irreparable injury to the Company; and (iii) it is essential to the protection of the Company’s goodwill and to the maintenance of the Company’s competitive position that the Confidential Information be kept secret and that Executive not disclose the Confidential Information to others or use same to his own advantage or to the advantage of others. Accordingly, Executive shall not, during the Term or thereafter, directly or indirectly, in any manner, utilize or disclose to any person, firm, corporation, association or other entity, or use on his own behalf, any confidential and proprietary information of the Company, including, but not limited to, information relating to strategic plans, sales, costs, client lists, client preferences, client identities, investment strategies, computer programs, profits or the business affairs and financial condition of the Company, or any of its clients, or any of the Company’s business methods, systems, marketing materials, clients or techniques (collectively “Confidential Information”), except for (i) such disclosures where required by law, but only after written notice to the Company detailing the circumstances and legal requirement for the disclosure; or (ii) as authorized during the performance of Executive’s duties for such use or purpose as are reasonably believed by Executive to be in the best interests of the Company. At any time, upon request, Executive shall deliver to the Company all of its property including, but not limited to, its Confidential Information (whether electronically stored or otherwise) which are in his possession or under his control. Property to be returned includes, but is not limited to, notebook pages, documents, records, prototypes, client files, drawings, electronically stored data, computer media or any other materials or property in Executive’s possession or control.

 

(b)     Noninterference. During the Term and for a period of one (1) year following the end of the Term (the “Restricted Period”), for whatever reason, he will not, directly or indirectly, for himself or on behalf of any third party, at any time or in any manner:

 

(i).       persuade, induce, solicit, influence or attempt to influence, or cause any person who is an employee of the Company to terminate his or her relationship with the Company or refer any such employee to anyone, without prior written approval from the Company;

 

(ii).      request or cause any of the Company’s clients or potential clients to cancel, modify or terminate any existing or continuing or, to Executive’s knowledge, prospective business relationship with the Company;

 

(iii).     engage in or participate in any effort or act to induce, or in any way cause, any client or, to Executive’s knowledge, prospective client of the Company, to deal with Executive or any other person or entity except in a capacity as representative of the Company, or otherwise take any action which might reasonably be expected to be disadvantageous to the Company;

 

 

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(iv).     persuade, induce, solicit, influence or attempt to influence, or cause any client or, to Executive’s knowledge, prospective client of the Company to cease or refrain from doing business, or to decline to do business, or to change or alter any existing or prospective business relationship, with the Company;

 

(v).      accept business from, or perform or provide any services for, any client, or to Executive’s knowledge, prospective client of the Company;

 

(vi).     contract with or communicate with, in either case in connection with services, any client or, to Executive’s knowledge, prospective client of the Company; or

 

(vii).    provide any third party with any information concerning any client, or to Executive’s knowledge, prospective client of the Company, including but not limited to, the disclosure of any client name or data, in whatever form, to such third party.

 

(c)     Noncompetition. During the Term and Restricted Period, Executive shall not, directly or indirectly, engage or participate in, or become employed by, or affiliated with, or enter into or maintain a contractual relationship with, or render advisory or any other services to, any person or business entity or organization, of whatever form, that competes with the Company in the United States or any other location in which the Company conducts business prior to Executive's termination date.

 

(d)     Injunctive Relief. Executive acknowledges that his compliance with the covenants in Sections 9(a), 9(b) and 9(c) hereof (the “Restrictive Covenants”) is necessary to protect the good will, Confidential Information and other proprietary interests of the Company, that such covenants are supported by adequate and sufficient consideration, and that, in the event of any violation or threatened violation by Executive of any such provision, the Company will sustain serious, irreparable and substantial harm to its business, the extent of which will be difficult to determine and impossible to remedy by an action at law for money damages. Accordingly, Executive agrees that, in the event of such violation or threatened violation by him, the Company shall be entitled to an injunction before trial from any court of competent jurisdiction as a matter of course and upon the posting of not more than a nominal bond, in addition to all such other legal and equitable remedies as may be available to the Company. Executive further acknowledges that he has carefully considered the nature and extent of the restrictions contained herein and the rights and remedies conferred upon the Company under this Agreement, and hereby acknowledges and agrees that the same are reasonable, are designed to protect the legitimate business interests of the Company, and do not confer benefits upon the Company disproportionate to the detriment upon him. In the event that Executive violates any of the covenants in this Agreement and the Company commences legal action for injunctive or other relief, the Company shall have the benefit of the full period of the covenants, computed from the date Executive ceased violation of the covenants, either by order of the court or otherwise. Executive acknowledges that any claim or cause of action he may have against the Company shall not constitute a defense to the enforcement by the Company of his covenants in Section 5 of this Agreement (e.g., these covenants are independent of any other provision in this Agreement and of any other promise made to Executive). Executive also acknowledges that his experience and capabilities are such that he can obtain suitable employment otherwise than in violation of the covenants in this Agreement and that the enforcement of these covenants will not prevent the earning of a livelihood nor cause undue hardship. Without limiting the foregoing, in the event of a breach by Executive of any Restrictive Covenant, the Company’s obligations under this Agreement shall immediately terminate, Executive shall not be entitled to any additional monetary payments or benefits of any kind whatsoever and Executive shall reimburse the Company for all of its attorneys fees and costs associated with any legal or equitable proceedings or litigation seeking to enforce the terms of this Agreement.

 

 

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(e)     Remedies Cumulative and Concurrent. The rights and remedies of the Company as provided in this Section 10 shall be cumulative and concurrent and may be pursued separately, successively or together, at the sole discretion of the Company, and may be exercised as often as occasion therefor shall arise. The failure to exercise any right or remedy shall in no event be construed as a waiver or release thereof.

 

(f)     Executive’s Authorization. Executive authorizes the Company to inform any third parties, including future employers, prospective employers and the Company’s clients or prospective clients, of the existence of this Agreement and his obligations under it and will cooperate with the company in connection with any filing or other disclosure with respect to this agreement with the Securities and Exchange Commission or any other U.S. governmental agency.

 

(g)     Survivability. The provisions of this Section 10 shall survive the cessation of Employee’s employment for any reason, as well as the expiration of this Agreement at the end of its Term or at any time prior thereto for a two (2) year period after Executive’s termination.

 

(h)     Definition of Company. For purposes of this Section 10, the term “Company” shall include the Company and any of its parents, subsidiaries, affiliates or any related companies including their respective successors and assigns.

 

11.          Other Provisions. 

 

(a)     Severability. The Executive acknowledges and agrees that (i) he has had an opportunity to seek advice of counsel in connection with this Agreement and (ii) the Restrictive Covenants are reasonable in geographical and temporal scope and in all other respects. If it is determined that any of the provisions of this Agreement or any part thereof, including, without limitation, any of the Restrictive Covenants, is held invalid or unenforceable by any court of competent jurisdiction, the other provisions of this Agreement will remain in full force and effect. Any provision of this Agreement held invalid or unenforceable only in part or degree will remain in full force and effect to the extent not held invalid or unenforceable.

 

(b)     Duration and Scope of Covenants. If any court or other decision-maker of competent jurisdiction determines that any of the Restrictive Covenants contained in this Agreement, including, without limitation, any of the Restrictive Covenants, or any part thereof, is unenforceable because of the duration or geographical scope of such provision, then, after such determination has become final and unappealable, the duration or scope of such provision, as the case may be, shall be reduced so that such provision becomes enforceable and, in its reduced form, such provision shall then be enforceable and shall be enforced.

 

(c)     Indemnification. To the extent permitted by law, the Company will indemnify and hold Executive harmless against any liability, damage, cost or expense incurred in connection with the defense of any action, suit or proceeding to which he is a party, or threat thereof, by reason of his being or having been an officer or director of the Company or any affiliate of the Company, to the extent permitted by applicable law; provided, however, that this indemnity shall not apply if Executive is determined by a court of competent jurisdiction to have acted against the interests of the Company with gross negligence, gross misconduct, or gross malfeasance. Promptly after receipt by Executive under this section of notice of the commencement of any action (including any governmental action), Executive shall, if a claim in respect thereof is to be made against Executive under this section, deliver to the Company a written notice of the commencement thereof. The failure to deliver written notice to the Company within a reasonable time of the commencement of any such action, if prejudicial to its ability to defend such action, shall relieve the Company of any liability to Executive under this section. 

 

 

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(d)     Arbitration. 

 

(i).       Subject to the limitations of this Section 11(d), if any dispute arises between the Parties under or concerning this Agreement or the terms hereof, or regarding the manner in which Executive was treated while employed by the Company, the termination of his employment, or any alleged violation by the Company of Executive’s rights under any common law theory, or any applicable federal, state, or local law, statute, regulation, or ordinance (including without limitation 42 U.S.C. § 1981, Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act, the Americans with Disabilities Act, and any other local, state, or federal legislation that pertains to employee rights or discrimination in employment), the Parties agree to submit such issue to final and binding arbitration to a three-person panel (with a panelist selected by each Party and the third panelist selected through agreement between the two selected panelists) in accordance with the then existing National Rules for the Resolution of Employment Disputes of the American Arbitration Association. Nothing in this Section 11(d), however, will preclude the Company from seeking the judicial relief set forth under Section 10 of this Agreement. 

 

(ii).      The Parties agree that the interpretation and enforcement of the arbitration provisions in this Agreement will be governed exclusively by the Federal Arbitration Act (the “FAA”), 9 U.S.C. § 1 et seq., provided that they are enforceable under the FAA, and will otherwise be governed by the law of the State of Nevada. 

 

(iii).     The Parties agree and understand that one of the objectives of this arbitration agreement is to resolve disputes expeditiously, as well as fairly, and to those ends it is the obligation of all Parties to raise any disputes subject to arbitration hereunder in an expeditious manner. Accordingly, the Parties agree that, as to any dispute that can be brought hereunder, a demand for arbitration must be postmarked or delivered in person to the other Party no later than six (6) months after the date the demanding Party knows or should have known of the event or events giving rise to the claim. Failure to demand arbitration on a claim within these time limits is intended to, and will to the furthest extent permitted by law, be a waiver and release with respect to such claims. If, and only if, the waiver and release of claims referenced in the immediately preceding sentence is found by a court of competent jurisdiction to be unenforceable as against Executive or the Company under this Agreement, the Parties will nevertheless submit such claims to arbitration pursuant to this Section 11(d) within the time permitted by law. 

 

(iv).     The Company and Executive will jointly and equally pay the arbitrator’s fees. 

 

(v).      Unless otherwise agreed by the Parties, arbitration will take place in Foster City, California. 

 

(vi).     In rendering an award, the arbitrator will determine the rights and obligations of the Parties according to federal law and the substantive law of the State of Nevada without regard to any principles governing conflicts of laws and the arbitrator’s decision will be governed by state and federal substantive law, including state and federal discrimination laws referenced in Section 11(d)(i) hereof, as though the matter were before a court of law. 

 

 

10

 

 

(vii).    Any arbitration award will be accompanied by a written statement containing a summary of the issues in controversy, a description of the award, and an explanation of the reasons for the award. The decision of the arbitrator will be made within thirty (30) days following the close of the hearing. The Parties agree that the award will be enforceable exclusively by any state or federal court of competent jurisdiction within Foster City, California.

 

(viii).   It is understood and agreed by the Parties that their agreement herein concerning arbitration does not contain, and cannot be relied upon Executive to contain, any promises or representations concerning the duration of the employment relationship, or the circumstances under or procedures by which the employment relationship may be modified or terminated. 

 

(ix).     If any part of this arbitration procedure is in conflict with any mandatory requirement or applicable law, the law will govern, and that part of this arbitration procedure will be reformed and construed to the maximum extent possible in conformance with the applicable law. The arbitration procedure will remain otherwise unaffected and enforceable. 

 

(e)     Notices. All notices, demands, consents, requests, instructions and other communications to be given or delivered or permitted under or by reason of the provisions of this Agreement or in connection with the transactions contemplated hereby shall be in writing and shall be deemed to be delivered and received by the intended recipient as follows: (i) if personally delivered, on the business day of such delivery (as evidenced by the receipt of the personal delivery service), (ii) if mailed certified or registered mail return receipt requested, two (2) business days after being mailed, (iii) if delivered by overnight courier (with all charges having been prepaid), on the business day of such delivery (as evidenced by the receipt of the overnight courier service of recognized standing), or (iv) if delivered by facsimile transmission or other electronic means, including email, on the business day of such delivery if sent by 6:00 p.m. in the time zone of the recipient, or if sent after that time, on the next succeeding business day. If any notice, demand, consent, request, instruction or other communication cannot be delivered because of a changed address of which no notice was given (in accordance with this Section 11(e), or the refusal to accept same, the notice, demand, consent, request, instruction or other communication shall be deemed received on the second business day the notice is sent (as evidenced by a sworn affidavit of the sender). All such notices, demands, consents, requests, instructions and other communications will be sent to the following addresses or facsimile numbers as applicable:

 

	
If to the Company, to:
	  	
1065 E. Hillsdale Boulevard

Suite 315

Foster City, CA 94404

Attention: Chairman of the Compensation Committee of the Board of Directors

Facsimile No.: ____________

	  	  	  
	
If to the Executive, to:
	  	___________________________________
	 	 	___________________________________
	 	 	Facsimile No.: ____________

 

Any such person may by notice given in accordance with this Section 11(d) to the other Parties hereto designate another address or person for receipt by such person of notices hereunder.

 

(f)     Section Headings. The headings of Sections in this Agreement are provided for convenience only and will not affect its construction or interpretation. All references to or “Section” or “Sections” refer to the corresponding Section or Sections of this Agreement, unless the context indicates otherwise.

 

 

11

 

 

(g)    Construction. The Parties have participated jointly in the negotiation and drafting of this Agreement. In the event an ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the Parties and no presumption or burden of proof shall arise favoring or disfavoring any Party by virtue of the authorship of any of the provisions of this Agreement. Any reference to any federal, state, local, or foreign statute or law shall be deemed also to refer to all rules and regulations promulgated thereunder, unless the context requires otherwise. Unless otherwise expressly provided, the word “including” shall mean including without limitation. The Parties intend that each representation, warranty, and covenant contained herein shall have independent significance. If any Party has breached any representation, warranty, or covenant contained herein in any respect, the fact that there exists another representation, warranty, or covenant relating to the same subject matter (regardless of the relative levels of specificity) which the Party has not breached shall not detract from or mitigate the fact that the Party is in breach of such representation, warranty, or covenant. All words used in this Agreement will be construed to be of such gender or number as the circumstances require.(h)     Counterparts. This Agreement may be executed in one or more counterparts, each of which will be deemed to be an original copy of this Agreement and all of which, when taken together, will be deemed to constitute one and the same agreement. In the event that any signature is delivered by facsimile transmission or by e-mail delivery of a “.pdf” format data file, such signature shall create a valid and binding obligation of the Party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile or “.pdf” signature page were an original thereof.

 

(i)     Entire Agreement. This Agreement contains the entire agreement between the Parties with respect to the subject matter hereof and supersedes all prior agreements, written or oral, with respect thereto.

 

(j)     Waivers and Amendments. This Agreement may be amended, superseded, canceled, renewed or extended, and the terms hereof may be waived, only by a written instrument signed by the Parties or, in the case of a waiver, by the Party waiving compliance. No delay on the part of any Party in exercising any right, power or privilege hereunder shall operate as a waiver thereof, nor shall any waiver on the part of any Party of any such right, power or privilege nor any single or partial exercise of any such right, power or privilege, preclude any other or further exercise thereof or the exercise of any other such right, power or privilege.

 

(k)    Assignment. This Agreement shall be binding upon and inure to the benefit of the Parties and their respective successors, heirs (in the case of the Executive) and assigns. No rights or obligations of the Company under this Agreement may be assigned or transferred by the Company except that such rights or obligations may be assigned or transferred pursuant to a merger or consolidation in which the Company is not the continuing entity, or the sale or liquidation of all or substantially all of the assets of the Company; provided, however, that the assignee or transferee is the successor to all or substantially all of the assets of the Company and such assignee or transferee assumes the liabilities, obligations and duties of the Company, as contained in this Agreement, either contractually or as a matter of law.

 

(l)     Withholding. The Company shall be entitled to withhold from any payments or deemed payments any amount of tax withholding it determines to be required by law.

 

(m)   Binding Effect. This Agreement shall be binding upon and inure to the benefit of the Parties and their respective successors, permitted assigns, heirs, executors and legal representatives.

 

(n)    Survival. Anything contained in this Agreement to the contrary notwithstanding, the provisions of Section 10 and any other provisions of this Agreement expressly imposing obligations that survive termination of Executive’s employment hereunder, and the other provisions of this Section 11 to the extent necessary to effectuate the survival of such provisions, shall survive termination of this Agreement and any termination of the Executive’s employment hereunder.

 

 

12

 

 

(o)    Existing Agreements. The Executive represents to the Company that he is not subject or a party to any employment or consulting agreement, non-competition covenant or other agreement, covenant or understanding which might prohibit him from executing this Agreement or limit his ability to fulfill his responsibilities hereunder.

 

(p)    GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF CALIFORNIA WITHOUT REGARD TO ANY PRINCIPLES OF CONFLICTS OF LAW WHICH COULD CAUSE THE APPLICATION OF THE LAWS OF ANY JURISDICTION OTHER THAN THE STATE OF NEVADA.

 

(q)    Waiver of Jury Trial. EACH OF THE PARTIES HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATED TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

 

IN WITNESS WHEREOF, the Company and the Executive have caused their respective signature pages to this Agreement to be duly executed as of the date first written above.

 

	
COMPANY:

	  
	
ARMCO METALS HOLDINGS, INC.

	  
	  
	
By:
	
/s/ William Thomson

	
Name:
	
William Thomson

	
Title:
	
Chairman, Compensation Committee of the Board of Directors

 

 

	
EXECUTIVE:

	  
	  
	
/s/ Kexuan Yao

	
                 Kexuan Yao

 

 

13

 

 

Exhibit A

 

Vesting Schedule

 

Employee Name: Kexuan Yao

 

Term: Effective Date through December 31, 2015

 

Vesting Schedule: 60,000 Restricted Shares vest on the first day of each quarter over a one (1) year period commencing on April 1, 2015, as follows, subject to the terms of the Agreement and the Company's Amended and Restated 2009 Stock Incentive Plan, as amended: 

 

	
Vesting Date
	
Vesting Shares

	
April 1, 2015
	
15,000

	
July 1, 2015
	
15,000

	
October 1, 2015
	
15,000

	
January 1, 2016
	
15,000

 

 

 

 

 

14EX-10.1

 Exhibit 10.1 

INDEMNIFICATION AGREEMENT 

This Indemnification Agreement (“Agreement”) is made and entered into as of [DATE], by and among The Gymboree
Corporation, a Delaware corporation (the “Company”), Giraffe Intermediate B, Inc., a Delaware corporation (“Giraffe B”), Giraffe Intermediate A, Inc., a Delaware corporation (“Giraffe A”), and
Giraffe Holding, Inc., a Delaware corporation (“Holdco” and, together with the Company, Giraffe B and Giraffe A, the “Gymboree Companies” and each a “Gymboree Company”), and [NAME OF
DIRECTOR] (“Indemnitee”). 
 WHEREAS, in light of the litigation costs and risks to directors and officers resulting
from their service to companies, and the desire of the Gymboree Companies to attract and retain qualified individuals to serve as directors and officers, it is reasonable, prudent and necessary for each of the Gymboree Companies to indemnify and
advance expenses on behalf of its and the other Gymboree Companies’ directors and/or officers to the fullest extent permitted by applicable law so that they will serve or continue to serve the Gymboree Companies free from undue concern
regarding such risks; 
 WHEREAS, the Gymboree Companies have requested that Indemnitee serve or continue to serve as a director and/or an
officer of one or more of the Gymboree Companies and may have requested or may in the future request that Indemnitee serve one or more Gymboree Entities (as hereinafter defined) as a director or an officer or in other capacities; 

WHEREAS, one of the conditions that Indemnitee requires in order to serve as a director and/or an officer of one or more of the Gymboree
Companies is that Indemnitee be so indemnified; and 
 WHEREAS, Indemnitee may have certain rights to indemnification, advancement of
expenses and/or insurance provided by one or more of the Designating Stockholders (as hereinafter defined) (or their affiliates), which Indemnitee, the Gymboree Companies and the Designating Stockholders (or their affiliates) intend to be secondary
to the primary obligation of the Gymboree Companies to indemnify Indemnitee as provided herein, with the Gymboree Companies’ acknowledgement of and agreement to the foregoing being a material condition to Indemnitee’s willingness to serve
as a director and/or officer of each of the Gymboree Companies. 
 NOW, THEREFORE, in consideration of the premises and the covenants
contained herein, the Gymboree Companies and Indemnitee do hereby covenant and agree as follows: 
 1. Services by Indemnitee.
Indemnitee agrees to serve or continue to serve, as applicable, as a director and/or an officer of one or more of the Gymboree Companies. Indemnitee may at any time and for any reason resign from such position (subject to any contractual obligation
Indemnitee may have under any other agreement). 

  
 — 1 — 

 2. Indemnification - General. On the terms and subject to the conditions of this
Agreement, the Gymboree Companies shall, to the fullest extent permitted by law, indemnify Indemnitee with respect to, and hold Indemnitee harmless from and against, all losses, damages, liabilities, judgments, fines, penalties, costs, amounts paid
in settlement, ERISA excise taxes, any federal, state, local or foreign taxes imposed on Indemnitee as a result of the actual or deemed receipt of any payments (other than Expenses) under this Agreement, Expenses (as hereinafter defined) and other
amounts that Indemnitee reasonably incurs and that result from or arise in connection with a Proceeding and are by reason of Indemnitee’s Corporate Status (as hereinafter defined) and shall advance Expenses to Indemnitee in connection with any
Proceeding. The obligations of the Gymboree Companies under this Agreement (a) are joint and several obligations of each Gymboree Company, (b) shall continue after such time as Indemnitee ceases to serve as a director or an officer of the
Gymboree Companies or in any other Corporate Status, and (c) include, without limitation, claims for monetary damages against Indemnitee in respect of any actual or alleged liability or other loss of Indemnitee, to the fullest extent permitted
under applicable law (including, if applicable, Section 145 of the Delaware General Corporation Law) as in existence on the date hereof and as amended from time to time. A limitation under law of any Gymboree Company on providing
indemnification or an advance of expenses to Indemnitee shall not limit the indemnification and advancement obligations of any Gymboree Company not so limited. 

3. Proceedings Other Than Proceedings by or in the Right of the Gymboree Companies. Subject to Section 9 and Section 14, if
in connection with or by reason of Indemnitee’s Corporate Status, Indemnitee was, is, or is threatened to be made, a party to or a participant in any Proceeding (as hereinafter defined) other than a Proceeding by or in the right of any of the
Gymboree Companies to procure a judgment in its favor, the Gymboree Companies shall, to the fullest extent permitted by law, indemnify Indemnitee with respect to, and hold Indemnitee harmless from and against, all Expenses, losses, damages,
liabilities, judgments, penalties, fines and, subject to Section 9(b)(iii), amounts paid in settlement (including all interest, assessments and other charges paid or payable in connection with or in respect of such liabilities, judgments,
penalties, fines and amounts paid in settlement) reasonably incurred by Indemnitee or on behalf of Indemnitee in connection with such Proceeding or any claim, issue or matter therein. 

4. Proceedings by or in the Right of the Gymboree Companies. Subject to Section 9, if in connection with or by reason of
Indemnitee’s Corporate Status, Indemnitee was, is, or is threatened to be made, a party to or a participant in any Proceeding by or in the right of any of the Gymboree Companies to procure a judgment in such Gymboree Company’s favor, the
Gymboree Companies shall, to the fullest extent permitted by law, indemnify Indemnitee with respect to, and hold Indemnitee harmless from and against, all Expenses reasonably incurred by Indemnitee or on behalf of Indemnitee in connection with such
Proceeding or any claim, issue or matter therein. 
 5. Mandatory Indemnification in Case of Successful Defense. Notwithstanding any
other provision of this Agreement, to the extent that Indemnitee is, by reason of Indemnitee’s Corporate Status, a party to (or a participant in) and is successful, on the merits or otherwise, in

  
 — 2 — 

 
defense of any Proceeding or any claim, issue or matter therein (including, without limitation, any Proceeding brought by or in the right of any Gymboree Company), the Gymboree Companies shall,
to the fullest extent permitted by law, indemnify Indemnitee with respect to, and hold Indemnitee harmless from and against, all Expenses reasonably incurred by Indemnitee or on behalf of Indemnitee in connection therewith. If Indemnitee is not
wholly successful in defense of such Proceeding but is successful, on the merits or otherwise, as to one or more but less than all claims, issues or matters in such Proceeding, the Gymboree Companies shall, to the fullest extent permitted by law,
indemnify Indemnitee against all Expenses reasonably incurred by Indemnitee or on behalf of Indemnitee in connection with each successfully resolved claim, issue or matter. For purposes of this Section 5 and without limitation, the
termination of any claim, issue or matter in such a Proceeding by dismissal, with or without prejudice, on substantive or procedural grounds, or settlement of any such claim (other than a derivative claim) prior to a final judgment by a court of
competent jurisdiction with respect to such Proceeding, shall be deemed to be a successful result as to such claim, issue or matter; provided, however, that any settlement of any claim, issue or matter in such a Proceeding shall not be
deemed to be a successful result as to such claim, issue or matter if such settlement is effected by Indemnitee without the Gymboree Companies’ prior written consent, which consent shall not be unreasonably withheld. 

6. Partial Indemnification. If Indemnitee is entitled under any provision of this Agreement or otherwise to indemnification by any of
the Gymboree Companies for some or a portion of the Expenses, liabilities, judgments, penalties, fines and amounts paid in settlement (including all interest, assessments and other charges paid or payable in connection with or in respect of such
liabilities, judgments, penalties, fines and amounts paid in settlement) incurred by Indemnitee or on behalf of Indemnitee in connection with a Proceeding or any claim, issue or matter therein, in whole or in part, the Gymboree Companies shall, to
the fullest extent permitted by law, indemnify Indemnitee to the fullest extent to which Indemnitee is entitled to such indemnification. 

7. Indemnification for Additional Expenses Incurred as Witness. 

To the extent that Indemnitee is, by reason of Indemnitee’s Corporate Status, a witness (or is forced or asked to respond to discovery
requests) in any Proceeding to which Indemnitee is not a party, the Gymboree Companies shall, to the fullest extent permitted by law, indemnify Indemnitee with respect to, and hold Indemnitee harmless from and against, and the Gymboree Companies
will advance on an as-incurred basis (as provided in Section 8 of this Agreement), all Expenses reasonably incurred by Indemnitee or on behalf of Indemnitee in connection therewith. 

8. Advancement of Expenses. The Gymboree Companies shall, to the fullest extent permitted by law, pay on a current and as-incurred
basis all Expenses incurred by Indemnitee in connection with any Proceeding in any way connected with, resulting from or relating to Indemnitee’s Corporate Status. Such Expenses shall be paid in advance of the final disposition of such
Proceeding, without regard to whether Indemnitee will ultimately be entitled to be indemnified for such Expenses and without regard to whether an Adverse Determination (as hereinafter defined) has been or may be made. Upon submission of a request
for advancement of 

  
 — 3 — 

 
Expenses pursuant to Section 9(c) of this Agreement, Indemnitee shall be entitled to advancement of Expenses as provided in this Section 8, and such advancement of Expenses
shall continue until such time (if any) as there is a final non-appealable judicial determination that Indemnitee is not entitled to indemnification. Indemnitee shall repay such amounts advanced if and to the extent that it shall ultimately be
determined in a decision by a court of competent jurisdiction from which no appeal can be taken that Indemnitee is not entitled to be indemnified by the Gymboree Companies for such Expenses. Such repayment obligation shall be unsecured and shall not
bear interest. The Gymboree Companies shall not impose on Indemnitee additional conditions to advancement or require from Indemnitee additional undertakings regarding repayment, other than the execution of this Agreement. Indemnitee shall, in all
events, be entitled to advancement of Expenses, without regard to Indemnitee’s ultimate entitlement to indemnification, until the final determination of the Proceeding. 

9. Indemnification Procedures. 

(a) Notice of Proceeding. Indemnitee agrees to notify the Gymboree Companies promptly upon being served with any summons, citation,
subpoena, complaint, indictment, information or other document relating to any Proceeding or matter which may be subject to indemnification or advancement of Expenses hereunder. Any failure by Indemnitee to notify any Gymboree Company will not
relieve the Gymboree Companies of its advancement or indemnification obligations under this Agreement unless, and only to the extent that, the Gymboree Companies can establish that such omission to notify resulted in actual and material prejudice,
and the omission to notify such Gymboree Companies will, in any event, not relieve any Gymboree Company from any liability which it may have to indemnify Indemnitee otherwise than under this Agreement. If, at the time of receipt of any such notice,
the Gymboree Companies have director and officer liability insurance policies in effect, the Gymboree Companies will promptly notify the relevant insurers in accordance with the procedures and requirements of such policies. 

(b) Defense; Settlement. 
 (i)
In any Proceeding involving Indemnitee and also involving a Gymboree Company and/or one or more other directors or officers of any Gymboree Company, Indemnitee shall have the right and obligation to control Indemnitee’s defense of the
Proceeding, or at the sole election of the Indemnitee, to tender control of the defense to any Gymboree Company, which such company shall be entitled to elect whether to accept and assume the defense; provided, however, that if
Indemnitee does not tender control of the defense to any Gymboree Company, Indemnitee shall agree, pursuant to Section 9(b)(ii), below, with such other directors and officers to retain a single law firm (and, if appropriate, one local law
firm), approved by the Company, which approval shall not be unreasonably withheld, delayed or conditioned, to represent Indemnitee and such other director(s) and officer(s) and any Gymboree Company (if mutually agreed by the Indemnitees and any
Gymboree Company), unless (1) Indemnitee (based on advice of legal counsel to Indemnitee) or such law firm reasonably concludes the use of such law firm to represent the Indemnitee and such other director(s) or officer(s) or any Gymboree
Company would present such counsel with an actual or potential 

  
 — 4 — 

 
conflict of interest that is reasonably likely to occur or other significant divergence of interest, or (2) any such representation by such counsel would be precluded under the applicable
standards of professional conduct then prevailing, in which case the Indemnitee shall be entitled to retain separate counsel (but not more than one law firm plus, if applicable, local counsel) at the Gymboree Companies’ expense; provided, that
the fewest number of counsels necessary to avoid conflicts of interest shall be used. In any Proceeding involving Indemnitee but not also involving any Gymboree Company and/or one or more other directors or officers of any Gymboree Company,
Indemnitee shall have the right and obligation to control Indemnitee’s defense of the Proceeding, Indemnitee shall be entitled to retain separate counsel (but not more than one law firm plus, if applicable, local counsel) approved by the
Company, which approval shall not be unreasonably withheld, at the Gymboree Companies’ expense, provided, however, that Indemnitee may, at the sole election of the Indemnitee, tender control of the defense to any Gymboree Company,
which such company shall be entitled to elect whether to accept and assume the defense. After notice from any Gymboree Company to Indemnitee of its election to accept and assume the defense, the Gymboree Companies will not be liable to Indemnitee
under this Agreement for any attorneys’ fees or costs subsequently incurred by Indemnitee in connection with Indemnitee’s defense except to the extent that Indemnitee (based on advice of legal counsel to Indemnitee) reasonably concludes
the use of the same law firm to represent the Indemnitee and such other director(s) or officer(s) or any Gymboree Company would present such counsel with an actual or potential conflict of interest (including but not limited to, legal defenses
available to Indemnitee that are not available to other director(s) or officer(s)) that is reasonably likely to occur or other significant divergence of interest such that individual counsel is warranted. 

(ii) In the event Indemnitee does not tender control of the defense to any Gymboree Company, Indemnitee shall reasonably cooperate with such
other directors and officers to choose a single law firm to represent them. If there is a disagreement between Indemnitee and such other directors or officers as to which law firm shall be selected and no one (based on advice of legal counsel to
such person) has reasonably concluded that there is an actual or potential conflict of interest (including but not limited to, legal defenses available to Indemnitee that are not available to other director(s) or officer(s)) such that individual
counsel is warranted, the Designating Stockholder shall select the law firm, subject to approval by the Company, which approval shall not be unreasonably withheld, delayed or conditioned. 

(iii) In the event that: 

(a) defense of a matter is tendered to any Gymboree Company, such Indemnitee will cooperate in the defense of any such matter,
including providing to the Gymboree Companies and such counsel, upon reasonable advance request any documentation or information which is not privileged or otherwise protected from disclosure and which is reasonably available to Indemnitee and
reasonably necessary to such defense, and Gymboree Company shall not, without the prior written consent of Indemnitee, settle any Proceeding in any manner that would: (i) impose any fine or other obligation on Indemnitee, including an admission

  
 — 5 — 

 
of culpability on behalf of Indemnitee or (ii) not include a full release of Indemnitee from all liability in respect of such action, suit or proceeding, which release shall be in form and
substance reasonably satisfactory to Indemnitee. 
 (b)any Indemnitee controls his, her or their own defense, the Gymboree
Companies shall not be liable for any settlement effected without their prior written consent, which consent shall not be unreasonably withheld, conditioned, or delayed; and provided, further, that the Gymboree Companies shall not have any
obligation hereunder to any Indemnitee if and to the extent that a court of competent jurisdiction shall ultimately determine, and such determination shall have become final, that the indemnification of such Indemnitee in the manner contemplated
hereby is prohibited by applicable legal requirements. 
 (c) Request for Advancement; Request for Indemnification. 

(i) To obtain advancement of Expenses under this Agreement, Indemnitee shall submit to the Gymboree Companies a written request therefor,
together with such invoices or other supporting information as may be reasonably requested by the Gymboree Companies and reasonably available to Indemnitee, and, only to the extent required by applicable law which cannot be waived, an unsecured
written undertaking to repay amounts advanced. The Gymboree Companies shall make advance payment of Expenses to Indemnitee no later than ten (10) business days after receipt of the written request for advancement (and each subsequent request
for advancement) by Indemnitee. 
 (ii) To obtain indemnification under this Agreement, at any time before or after submission of a request
for advancement of Expenses pursuant to Section 9(c)(i) of this Agreement, Indemnitee may submit a written request for indemnification hereunder, which request shall include such documentation and information reasonably available to Indemnitee
and reasonably necessary to determine whether and to what extent Indemnitee is entitled to indemnification. The time at which Indemnitee submits a written request for indemnification shall be determined by Indemnitee in Indemnitee’s sole
discretion. Once Indemnitee submits such a written request for indemnification (and only at such time that Indemnitee submits such a written request for indemnification), a Determination (as hereinafter defined) shall thereafter be made, as provided
in and only to the extent required by Section 9(d) of this Agreement. In no event shall a Determination be made, or required to be made, as a condition to or otherwise in connection with any advancement of Expenses pursuant to
Section 8 and Section 9(c)(i) of this Agreement. 
 (d) Determination. The Gymboree Companies agree that
Indemnitee shall be indemnified to the fullest extent permitted by law and that a Determination shall be required in connection with such indemnification only if required by applicable law. In no event shall a Determination be required in connection
with indemnification for Expenses pursuant to Section 7 of this Agreement or incurred in connection with any Proceeding or portion thereof with respect 

  
 — 6 — 

 
to which Indemnitee has been successful on the merits or otherwise and no determination as to entitlement of Indemnitee to indemnification under this Agreement shall be required to be made prior
to the final disposition of any Proceeding. Any decision that a Determination is required by law in connection with any other indemnification of Indemnitee, and any such Determination, shall be made within thirty (30) days after receipt of
Indemnitee’s written request for indemnification pursuant to Section 9(c)(ii) and, if no Change in Control has occurred, such Determination shall be made (i) by a majority vote of the Disinterested Directors (as hereinafter
defined), even though less than a quorum, (ii) by a committee of Disinterested Directors designated by a majority vote of the Disinterested Directors, even though less than a quorum or (iii) if there are no such Disinterested Directors, by
Independent Counsel in a written opinion to the Gymboree Companies and copied to Indemnitee. If a Change in Control shall have occurred, (A) if the Indemnitee so requests in writing, by a majority vote of the Disinterested Directors, even if
less than a quorum or (B) otherwise, by Independent Counsel in a written opinion to the Gymboree Companies and copied to Indemnitee. If a Determination is made that Indemnitee is entitled to indemnification, payment to Indemnitee shall be made
within ten (10) business days after such Determination. Indemnitee shall reasonably cooperate with the person, persons or entity making such determination with respect to Indemnitee’s entitlement to indemnification, including providing to
such person, persons or entity upon reasonable advance request any documentation or information which is not privileged or otherwise protected from disclosure and which is reasonably available to Indemnitee and reasonably necessary to such
Determination. Any Expenses incurred by Indemnitee in so cooperating with the Disinterested Directors or Independent Counsel, as the case may be, making such determination shall be advanced and borne by the Gymboree Companies (irrespective of the
Determination as to Indemnitee’s entitlement to indemnification) and each Gymboree Company is liable to indemnify and hold Indemnitee harmless therefrom. If the person, persons or entity empowered or selected under this Section 9(d)
to determine whether Indemnitee is entitled to indemnification shall not have made a determination within thirty (30) days after receipt by the Gymboree Companies of the request therefor, the requisite determination of entitlement to
indemnification shall, to the fullest extent not prohibited by law, be deemed to have been made and Indemnitee shall be entitled to such indemnification, absent (1) a misstatement by Indemnitee of a material fact, or an omission of a material
fact necessary to make Indemnitee’s statement not materially misleading, in connection with the request for indemnification, or (2) a prohibition of such indemnification under applicable law; provided, however, that such
thirty (30) day period may be extended for a reasonable time, not to exceed an additional thirty(30) days, if the person, persons or entity making the determination with respect to entitlement to indemnification in good faith requires such
additional time for the obtaining or evaluating of documentation and/or information relating thereto; and provided, further, that the foregoing provisions of this Section 9(d) shall not apply if the determination of
entitlement to indemnification is to be made by Independent Counsel pursuant to Section 9(e). 
 (e) Independent Counsel.
In the event the Determination is to be made by Independent Counsel pursuant to Section 9(d) of this Agreement, the Independent Counsel shall be selected as provided in this Section 9(e). The Independent Counsel shall be
selected by the Board of Directors on behalf of the Gymboree Companies, subject to the remaining provisions of this Section 9(e), and the Gymboree Companies shall give written notice to Indemnitee, advising

  
 — 7 — 

 
Indemnitee of the identity of the Independent Counsel so selected. Indemnitee may, within twenty (20) days after such written notice of selection shall have been received, deliver to the
Gymboree Companies a written objection to such selection; provided, however, that such objection may be asserted only on the ground that the Independent Counsel so selected does not meet the requirements of “Independent
Counsel” as defined in Section 15 of this Agreement, and the objection shall set forth with particularity the factual basis of such assertion. Absent a proper and timely objection, the person so selected by the Board of Directors
shall act as Independent Counsel. If a written objection is so made and substantiated, the Independent Counsel so selected may not serve as Independent Counsel unless and until such objection is withdrawn or a court of competent jurisdiction has
determined that such objection is without merit. If, within ten (10) days after submission by Indemnitee of a written request for indemnification pursuant to Section 9(c)(ii) of this Agreement and the Board of Directors’
selection of Independent Counsel, no Independent Counsel shall have been selected and not objected to, either the Gymboree Companies or Indemnitee may petition a court of competent jurisdiction for resolution of any objection which shall have been
made by Indemnitee to the Board of Directors’ selection of Independent Counsel and/or for the appointment as Independent Counsel of a person selected by the court or by such other person as the court shall designate, and the person with respect
to whom all objections are so resolved or the person so appointed shall act as Independent Counsel under Section 9(d) of this Agreement. Upon the due commencement of any judicial proceeding or arbitration pursuant to
Section 9(f) of this Agreement, Independent Counsel shall be discharged and relieved of any further responsibility in such capacity (subject to the applicable standards of professional conduct then prevailing). Any expenses incurred by
or in connection with the appointment of Independent Counsel shall be borne by the Gymboree Companies (irrespective of the Determination of Indemnitee’s entitlement to indemnification) and not by Indemnitee. 

(f) Consequences of Determination; Remedies of Indemnitee. The Gymboree Companies shall be bound by and shall have no right to
challenge a Favorable Determination made pursuant to Section 9 of this Agreement. If an Adverse Determination is made pursuant to Section 9 of this Agreement, or if for any other reason the Gymboree Companies do not make
timely indemnification payments or advances of Expenses, Indemnitee shall have the right to commence a Proceeding before a court of competent jurisdiction to challenge such Adverse Determination and/or to require the Gymboree Companies to make such
payments or advances (and the Company shall have the right to defend its position in such Proceeding and to appeal any adverse judgment in such Proceeding). Indemnitee shall be entitled to be indemnified for all Expenses incurred in connection with
such a Proceeding and to have such Expenses advanced by the Company in accordance with Section 8 of this Agreement (unless a court of competent jurisdiction determines that each of the material assertions made by Indemnitee in such
Proceeding was not made in good faith or was frivolous). If Indemnitee fails to challenge an Adverse Determination within twenty (20) business days, or if Indemnitee challenges an Adverse Determination and such Adverse Determination has been
upheld by a final judgment of a court of competent jurisdiction from which no appeal can be taken, then, to the extent and only to the extent required by such Adverse Determination or final judgment, the Gymboree Companies shall not be obligated to
indemnify Indemnitee under this Agreement. 

  
 — 8 — 

 (g) Presumptions; Burden and Standard of Proof. The parties intend and agree that, to the
extent permitted by law, in connection with any Determination with respect to Indemnitee’s entitlement to indemnification hereunder by any person, including a court: 

(i) it will be presumed that Indemnitee is entitled to indemnification under this Agreement (notwithstanding any Adverse Determination), and
the Gymboree Entities or any other person or entity challenging such right will have the burden of proof to overcome that presumption in connection with the making by any person, persons or entity of any determination contrary to that presumption;

 (ii) the termination of any action, suit or proceeding by judgment, order, settlement, conviction, or upon a plea of
nolo contendere or its equivalent, shall not, of itself, create a presumption that Indemnitee did not act in good faith and in a manner which Indemnitee reasonably believed to be in or not opposed to the best interests of the applicable
Gymboree Entity, and, with respect to any criminal action or proceeding, had reasonable cause to believe that Indemnitee’s conduct was unlawful; 

(iii) Indemnitee will be deemed to have acted in good faith if Indemnitee’s action is based on the records or books of account of the
applicable Gymboree Entity, including financial statements, or on information supplied to Indemnitee by the officers, employees, or committees of the board of directors of the applicable Gymboree Entity, or on the advice of legal counsel or other
advisors (including financial advisors and accountants) for the applicable Gymboree Entity to the extent Indemnitee reasonably believes such matters are within the general scope of services (i.e., legal, tax, financial advice, etc.) provided by or
competence of such person or on information or records given in reports made to the applicable Gymboree Entity by an independent certified public accountant or by an appraiser or other expert or advisor selected by the applicable Gymboree Entity;
and 
 (iv) the knowledge and/or actions, or failure to act, of any director, officer, agent or employee of any of the Gymboree Entities or
relevant enterprises will not be imputed to Indemnitee in a manner that limits or otherwise adversely affects Indemnitee’s rights hereunder. 

The provisions of this Section 9(g) shall not be deemed to be exclusive or to limit in any way the other circumstances in which
Indemnitee may be deemed to have met the applicable standard of conduct set forth in this Agreement. 
 10. Remedies of Indemnitee.

 (a) In the event that (i) an Adverse Determination is made pursuant to Section 9(d) of this Agreement,
(ii) advancement of Expenses is not timely made pursuant to Section 8 and Section 9(c)(i) of this Agreement, (iii) no determination of entitlement to indemnification shall have been made pursuant to
Section 9(d) of this Agreement within thirty (30) days after receipt by the Gymboree Companies of the request for indemnification, (iv) payment of indemnification is not made pursuant to Section 5, or 7 of
this Agreement within ten (10)

  
 — 9 — 

 
business days after receipt by the Gymboree Companies of a written request therefor, (v) payment of indemnification pursuant to Section 3, 4 or 6 of this Agreement is not
made within ten (10) business days after a determination has been made that Indemnitee is entitled to indemnification, or (vi) in the event that the Gymboree Companies or any other person takes or threatens to take any action to declare
this Agreement void or unenforceable, or institutes any litigation or other action or Proceeding designed to deny, or to recover from, Indemnitee the benefits provided or intended to be provided to Indemnitee hereunder, Indemnitee shall be entitled
to an adjudication by a court of his entitlement to such indemnification or advancement of Expenses. Alternatively, Indemnitee, at his option, may seek an award in arbitration to be conducted by a single arbitrator pursuant to the Commercial
Arbitration Rules of the American Arbitration Association. The Gymboree Companies shall not oppose Indemnitee’s right to seek any such adjudication or award in arbitration. 

(b) In the event that an Adverse Determination shall have been made pursuant to Section 9(d) of this Agreement, any judicial
proceeding or arbitration commenced pursuant to this Section 10 shall be conducted in all respects as a de novo trial, or arbitration, on the merits, in which (i) Indemnitee shall not be prejudiced by reason of that
Adverse Determination, and (ii) the Gymboree Companies shall bear the burden of establishing that Indemnitee is not entitled to indemnification. 

(c) If a Favorable Determination shall have been made pursuant to Section 9(d) of this Agreement, the Gymboree Companies shall be
bound by such determination in any judicial proceeding or arbitration commenced pursuant to this Section 10, absent (i) a misstatement by Indemnitee of a material fact, or an omission of a material fact necessary to make
Indemnitee’s statement not materially misleading, in connection with the request for indemnification, or (ii) a prohibition of such indemnification under applicable law. 

(d) The Gymboree Companies shall, to the fullest extent not prohibited by law, be precluded from asserting in any judicial proceeding or
arbitration commenced pursuant to this Section 10 that the procedures and presumptions of this Agreement are not valid, binding and enforceable and shall stipulate in any such court or before any such arbitrator that the Gymboree
Companies are bound by all the provisions of this Agreement. 
 11. Insurance; Subrogation; Other Rights of Recovery, etc. 

(a) Each Gymboree Company shall use its commercially reasonable efforts to purchase and maintain a policy or policies of insurance with
reputable insurance companies with A.M. Best ratings of “A” or better, providing Indemnitee with coverage for any liability asserted against, and incurred by, Indemnitee or on Indemnitee’s behalf by reason of Indemnitee’s
Corporate Status, or arising out of Indemnitee’s status as such, whether or not any such Gymboree Company would have the power to indemnify Indemnitee against such liability. Furthermore, each Gymboree Company shall take all reasonable action
to cause such insurers to pay, on behalf of Indemnitee, all amounts payable as a result of such action, suit, proceeding or other claim in accordance with the terms of such policy. Such Gymboree Company shall use commercially reasonable efforts to
continue to provide such insurance coverage to Indemnitee for a period of six (6) years after Indemnitee ceases to serve as a director or an officer or in any other Corporate Status. 

  
 — 10 — 

 (b) Each of the Gymboree Companies hereby unconditionally and irrevocably waives, relinquishes
and releases, and covenants and agrees not to exercise (and to cause each of the other Gymboree Entities not to exercise), any rights that such Gymboree Company may now have or hereafter acquire against any Designating Stockholder (or former
Designating Stockholder) that arise from or relate to the existence, payment, performance or enforcement of the Gymboree Companies’ obligations under this Agreement or under any other indemnification agreement (whether pursuant to contract,
by-laws or charter) with any person or entity, including, without limitation, any right of subrogation (whether pursuant to contract or common law), reimbursement, exoneration, contribution or indemnification, or to be held harmless, and any right
to participate in any claim or remedy of Indemnitee against any Designating Stockholder (or former Designating Stockholder), whether or not such claim, remedy or right arises in equity or under contract, statute or common law, including, without
limitation, the right to take or receive from any Designating Stockholder (or former Designating Stockholder), directly or indirectly, in cash or other property or by set-off or in any other manner, payment or security on account of such claim,
remedy or right. 
 (c) No Gymboree Company shall be liable to pay or advance to Indemnitee any amounts otherwise indemnifiable under this
Agreement or under any other indemnification agreement if, and to the extent that, Indemnitee has otherwise actually received such payment under any insurance policy, contract, agreement or otherwise; provided, however, that
(i) the Gymboree Companies hereby agree that they are the indemnitors of first resort under this Agreement and under any other indemnification agreement included in the Gymboree Companies’ bylaws or charter are primary and any obligation
of any Designating Stockholder (or any affiliate thereof other than an Gymboree Company) to provide advancement or indemnification for the same Expenses, liabilities, judgments, penalties, fines and amounts paid in settlement (including all
interest, assessments and other charges paid or payable in connection with or in respect of such Expenses, liabilities, judgments, penalties, fines and amounts paid in settlement) incurred by Indemnitee are secondary), and (ii) if any
Designating Stockholder (or any affiliate thereof other than a Gymboree Entity) pays or causes to be paid, for any reason, any amounts otherwise indemnifiable hereunder or under any other indemnification agreement included in the Gymboree
Companies’ bylaws or charter , then (x) such Designating Stockholder (or such affiliate, as the case may be) shall be fully subrogated to all rights of Indemnitee with respect to such payment and (y) the Gymboree Companies shall fully
indemnify, reimburse and hold harmless such Designating Stockholder (or such other affiliate) for all such payments actually made by such Designating Stockholder (or such other affiliate). 

(d) The Gymboree Companies’ obligation to indemnify or advance Expenses hereunder to Indemnitee in respect of or relating to
Indemnitee’s service at the request of any of the Gymboree Companies as a director, officer, employee, fiduciary, trustee, representative, partner or agent of any other Gymboree Entity shall be reduced by any amount Indemnitee has actually
received as payment of indemnification or advancement of Expenses from such other Gymboree Entity, except to the extent that such indemnification payments and advance payment 

  
 — 11 — 

 
of Expenses when taken together with any such amount actually received from other Gymboree Entities or under director and officer insurance policies maintained by one or more Gymboree Entities
are inadequate to fully pay all costs, Expenses or other items to the full extent that Indemnitee is otherwise entitled to indemnification or other payment hereunder. 

(e) Except as provided in Sections 11(b), 11(c) and 11(d) of this Agreement, the rights to indemnification and advancement of Expenses as
provided by this Agreement shall not be deemed exclusive of any other rights to which Indemnitee may at any time, whenever conferred or arising, be entitled under applicable law, under the Gymboree Entities’ Certificates of Incorporation or
By-Laws, or under any other agreement including the Agreement and Plan of Merger, dated as of October 11, 2010, by and among Gymboree and Giraffe Holding, Inc. (“Parent”) and Giraffe Acquisition Corporation, a wholly owned subsidiary
of Parent, vote of stockholders or resolution of directors of any Gymboree Entity, or otherwise. Indemnitee’s rights under this Agreement are present contractual rights that fully vest upon Indemnitee’s first service as a director or an
officer of any of the Gymboree Companies. The Parties hereby agree that Sections 11(b), 11(c) and 11(d) of this Agreement shall be deemed exclusive and shall be deemed to modify, amend and clarify any right to indemnification or advancement provided
to Indemnitee under any other contract, agreement or document with any Gymboree Entity. 
 (f) No amendment, alteration or repeal of this
Agreement or of any provision hereof shall limit or restrict any right of Indemnitee under this Agreement in respect of any action taken or omitted by such Indemnitee in Indemnitee’s Corporate Status prior to such amendment, alteration or
repeal. To the extent that a change in the General Corporation Law of the State of Delaware (or other applicable law), whether by statute or judicial decision, permits greater indemnification or advancement of Expenses than would be afforded
currently under the Gymboree Entities’ Certificates of Incorporation or By-Laws and this Agreement, it is the intent of the parties hereto that Indemnitee enjoy by this Agreement the greater benefits so afforded by such change. The assertion or
employment of any right or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other right or remedy. 

(g) In the event of payment to Indemnitee under this Agreement, the Gymboree Companies shall be subrogated to the extent of such payment to
all of the rights of contribution or recovery of Indemnitee against other persons, and Indemnitee shall execute all papers required and shall do everything that may be necessary to secure such rights, including the execution of such documents
necessary to enable the Gymboree Companies effectively to bring suit to enforce such rights; provided, however, that in no event shall any Gymboree Company be entitled to seek (through subrogation, contribution or otherwise) recovery from any
Designating Stockholder as a result of payment hereunder. 
 12. Employment Rights; Successors; Third Party Beneficiaries. 

(a) This Agreement shall not be deemed an employment contract between the Gymboree Companies and Indemnitee. This Agreement shall continue in
force as provided above after Indemnitee has ceased to serve as a director and/or an officer of the Gymboree Companies or any other Corporate Status. 

  
 — 12 — 

 (b) This Agreement shall be binding upon each of the Gymboree Companies and their successors and
assigns and shall inure to the benefit of Indemnitee and Indemnitee’s heirs, executors and administrators. If any of the Gymboree Companies or any of their respective successors or assigns shall (i) consolidate with or merge into any other
corporation or entity and shall not be the continuing or surviving corporation or entity of such consolidation or merger or (ii) transfer all or substantially all of its properties and assets to any individual, corporation or other entity,
then, and in each such case, proper provisions shall be made so that the successors and assigns of the Gymboree Companies shall assume all of the obligations set forth in this Agreement. 

(c) The Designating Stockholders are express third party beneficiaries of this Agreement, are entitled to rely upon this Agreement, and may
specifically enforce the Gymboree Companies’ obligations hereunder (including but not limited to the obligations specified in Section 11 of this Agreement) as though a party hereunder. 

13. Severability. If any provision or provisions of this Agreement shall be held to be invalid, illegal or unenforceable for any reason
whatsoever: (a) the validity, legality and enforceability of the remaining provisions of this Agreement (including without limitation, each portion of any Section of this Agreement containing any such provision held to be invalid, illegal or
unenforceable, that is not itself invalid, illegal or unenforceable) shall not in any way be affected or impaired thereby; (b) such provision or provisions shall be deemed reformed to the extent necessary to conform to applicable law and to
give the maximum effect to the intent of the parties hereto; and (c) to the fullest extent possible, the provisions of this Agreement (including, without limitation, each portion of any Section of this Agreement containing any such provision
held to be invalid, illegal or unenforceable, that is not itself invalid, illegal or unenforceable) shall be construed so as to give effect to the intent manifested thereby. 

14. Exception to Right of Indemnification or Advancement of Expenses. Notwithstanding any other provision of this Agreement and except
as may otherwise be agreed by any Gymboree Company, Indemnitee shall not be entitled to indemnification or advancement of Expenses under this Agreement with respect to (A) any Proceeding brought by Indemnitee (other than a Proceeding by
Indemnitee (i) by way of defense or counterclaim or other similar portion of a Proceeding, (ii) to enforce Indemnitee’s rights under this Agreement or (iii) to enforce any other rights of Indemnitee to indemnification,
advancement or contribution from the Gymboree Companies under any other contract, by-laws or charter or under statute or other law, including any rights under Section 145 of the Delaware General Corporation Law), unless the bringing of such
Proceeding or making of such claim shall have been approved by the Board of Directors of the applicable Gymboree Company or (B) any Proceeding if a final non-appealable adjudication in such Proceeding by a court of competent jurisdiction
determines that such indemnification is prohibited by applicable law. 
 15. Definitions. For purposes of this Agreement: 

(a) “Beneficial Owner” has the meaning given to the term “beneficial owner” in Rule 13d-3 under the Securities
Exchange Act of 1934, as amended. 

  
 — 13 — 

 (b) “Board of Directors” means the board of directors of the Company. 

(c) “By-laws” means (i) in the case of any Gymboree Company, its by-laws and (ii) in the case of any other entity,
its by-laws or similar governing document, in each case, as such governing document is amended from time to time. 
 (d)
“Certificate of Incorporation” means, (i) in the case of any Gymboree Company, its certificate of incorporation, (ii) in the case of any other entity, its certificate of incorporation, articles of incorporation or similar
constituting document, in each case, as such constituting document is amended from time to time. 
 (e) “Change in Control”
means the date on which the Designating Stockholder ceases to be the Beneficial Owner of more than 50% of the Voting Securities. 
 (f)
“Corporate Status” describes the status of a person by reason of such person’s past, present or future service as a director, officer, employee, fiduciary, trustee, or agent of any of the Gymboree Companies (including, without
limitation, one who serves at the request of any of the Gymboree Companies as a director, officer, employee, fiduciary, trustee or agent of any other Gymboree Entity). 

(g) “Designating Stockholder” means Bain Capital Investors LLC and its associated entities (including funds, holding
companies and advisors), and any insurer of the foregoing, in each case so long as an individual designated (directly or indirectly) by Bain Capital Investors LLC and its associated entities (as provided by the Company’s Certificate of
Incorporation, By-laws and Stockholders Agreement) serves or has served as a director and/or officer of any Gymboree Entity. 
 (h)
“Determination” means a determination that either (i) there is a reasonable basis for the conclusion that indemnification of Indemnitee is proper in the circumstances because Indemnitee met a/the particular standard(s) of
conduct (a “Favorable Determination”) or (ii) there is no reasonable basis for the conclusion that indemnification of Indemnitee is proper in the circumstances because Indemnitee did not meet a/the particular standard(s) of
conduct (an “Adverse Determination”). An Adverse Determination shall include the decision that a Determination was required in connection with indemnification and the decision as to the applicable standard of conduct. 

(i) “Disinterested Director” means a director of the Company (or, if a Determination is necessary with respect to any
Gymboree Company other than the Company, a director of such Gymboree Company) who is not and was not a party to the Proceeding in respect of which indemnification is sought by Indemnitee and does not otherwise have an interest materially adverse to
any interest of Indemnitee. 
 (j) “Expenses” shall mean all direct and indirect costs, fees and expenses of any type or
nature whatsoever and shall specifically include, without limitation, all reasonable attorneys’ fees, retainers, court costs, transcript costs, fees and costs of experts, witness fees and costs, travel expenses, duplicating costs, printing and
binding costs, telephone charges, postage, 

  
 — 14 — 

 
delivery service fees, any federal, state, local or foreign taxes imposed on Indemnitee as a result of the actual or deemed receipt of any payments of the foregoing fees and costs under this
Agreement, and all other disbursements or expenses of the types customarily incurred in connection with prosecuting, defending, preparing to prosecute or defend, investigating, being or preparing to be a witness, in, or otherwise participating in, a
Proceeding or an appeal resulting from a Proceeding, including, but not limited to, the premium for appeal bonds, attachment bonds or similar bonds and all interest, assessments and other charges paid or payable in connection with or in respect of
any such Expenses, and shall also specifically include, without limitation, all reasonable attorneys’ fees and all other expenses incurred by or on behalf of Indemnitee in connection with preparing and submitting any requests or statements for
indemnification, advancement, contribution or any other right provided by this Agreement. Expenses, however, shall not include amounts of judgments or fines against Indemnitee or amounts paid in settlement by Indemnitee or ERISA excise taxes, or any
federal state, local or foreign taxes imposed on Indemnitee as a result of the actual or deemed receipt of any judgment or settlement payments under this Agreement. 

(k) “Gymboree Entity” means any Gymboree Company, any of their respective subsidiaries and any other corporation,
partnership, limited liability company, joint venture, trust, employee benefit plan or other enterprise with respect to which Indemnitee serves as a director, officer, employee, partner, representative, fiduciary, trustee, or agent, or in any
similar capacity, at the request of any Gymboree Company. 
 (l) “Independent Counsel” means, at any time, any law firm, or
a member of a law firm, that (a) is experienced in matters of corporation law and (b) is not, at such time, or has not been in the five years prior to such time, retained to represent: (1) any Gymboree Entity or Indemnitee or the
Designated Stockholder in any matter material to any of them (other than with respect to matters concerning Indemnitee under this Agreement, or of other indemnitees under similar indemnification agreements), or (2) any other party to the
Proceeding giving rise to a claim for indemnification hereunder. Notwithstanding the foregoing, the term “Independent Counsel” shall not include any person who, under the applicable standards of professional conduct then prevailing, would
have a conflict of interest in representing either the Gymboree Companies or Indemnitee in an action to determine Indemnitee’s rights under this Agreement. 

(m) “Proceeding” includes any actual, threatened, pending or completed action, suit, arbitration, alternate dispute
resolution mechanism, investigation (formal or informal), inquiry, administrative hearing or any other actual, threatened, pending or completed proceeding, whether brought by or in the right of any Gymboree Company or otherwise and whether civil,
criminal, administrative or investigative in nature, in which Indemnitee was, is, may be or will be involved as a party, witness or otherwise, by reason of Indemnitee’s Corporate Status or by reason of any action taken by Indemnitee or of any
inaction on Indemnitee’s part while acting as director, officer, employee, fiduciary, trustee or agent of any Gymboree Entity (in each case whether or not he is acting or serving in any such capacity or has such status at the time any liability
or expense is incurred for which indemnification or advancement of Expenses can be provided under this Agreement). If Indemnitee believes in good faith that a given situation may lead to or culminate in the institution of a Proceeding, this shall be
considered a Proceeding under this paragraph. 

  
 — 15 — 

 (n) “Stockholders Agreement” means the Amended and Restated Stockholders
Agreement dated as of December 23, 2011 by and among the Gymboree Companies and certain of the stockholders of the Company, as amended from time to time. 

(o) “Voting Securities” means any securities of Holdco that vote generally in the election of directors. 

16. Construction. Whenever required by the context, as used in this Agreement the singular number shall include the plural, the plural
shall include the singular, and all words herein in any gender shall be deemed to include (as appropriate) the masculine, feminine and neuter genders. 

17. Reliance. The Gymboree Companies expressly confirm and agree that they have entered into this Agreement and assumed the obligations
imposed on each of them hereby in order to induce Indemnitee to serve as a director and/or an officer of one or more of the Gymboree Companies, and the Gymboree Companies acknowledge that Indemnitee is relying upon this Agreement in serving as a
director and/or an officer of one or more of the Gymboree Companies. 
 18. Modification and Waiver. No supplement, modification or
amendment of this Agreement shall be binding unless executed in a writing identified as such by all of the parties hereto. Except as otherwise expressly provided herein, the rights of a party hereunder (including the right to enforce the obligations
hereunder of the other parties) may be waived only with the written consent of such party, and no waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provisions hereof (whether or not similar)
nor shall such waiver constitute a continuing waiver. 

  
 — 16 — 

 19. Notice Mechanics. All notices, requests, demands or other communications hereunder
shall be in writing and shall be deemed to have been duly given if (i) delivered by hand and receipted for by the party to whom said notice or other communication shall have been directed, or (ii) mailed by certified or registered mail
with postage prepaid, on the third business day after the date on which it is so mailed: 
 (a) If to Indemnitee to: 

[DIRECTOR CONTACT INFORMATION] 

with a copy to: 
 (b) If to any
Gymboree Company, to: 
 The Gymboree Corporation 

500 Howard Street 
 San
Francisco, California 94105 
 Attn: General Counsel 
  

			
	with a copy to:		Ropes & Gray LLP
			Three Embarcadero Center
			San Francisco, CA 94111-4006
			Attn: Thomas Holden

 or to such other address as may have been furnished (in the manner prescribed above) as follows: (x) in the case of a
change in address for notices to Indemnitee, furnished by Indemnitee to the Gymboree Companies and (y) in the case of a change in address for notices to any Gymboree Company, furnished by the Gymboree Companies to Indemnitee. 

20. Contribution. To the fullest extent permissible under applicable law, if the indemnification provided for in this Agreement is
unavailable to Indemnitee for any reason whatsoever, the Gymboree Companies, in lieu of indemnifying Indemnitee, shall contribute to the amount incurred by Indemnitee, whether for judgments, fines, penalties, excise taxes, amounts paid or to be paid
in settlement and/or for reasonably incurred Expenses, in connection with any claim relating to an indemnifiable event under this Agreement, in such proportion as is deemed fair and reasonable in light of all of the circumstances of such Proceeding
in order to reflect (a) the relative benefits received by the Gymboree Companies and Indemnitee as a result of the event(s) and/or transaction(s) giving cause to such Proceeding; and/or (b) the relative fault of the Gymboree Companies (and
their other directors, officers, employees and agents) and Indemnitee in connection with such event(s) and/or transaction(s). 

  
 — 17 — 

 21. Governing Law; Submission to Jurisdiction; Appointment of Agent for Service of
Process. This Agreement and the legal relations among the parties shall, to the fullest extent permitted by law, be governed by, and construed and enforced in accordance with, the laws of the State of Delaware, without regard to its conflict of
laws rules. The Gymboree Companies and Indemnitee hereby irrevocably and unconditionally (a) agree that any action or proceeding arising out of or in connection with this Agreement shall be brought only in the Court of Chancery of the State of
Delaware (the “Delaware Court”), and not in any other state or federal court in the United States of America or any court in any other country, (b) consent to submit to the exclusive jurisdiction of the Delaware Court for
purposes of any action or proceeding arising out of or in connection with this Agreement, (c) waive any objection to the laying of venue of any such action or proceeding in the Delaware Court and (d) waive, and agree not to plead or to
make, any claim that any such action or proceeding brought in the Delaware Court has been brought in an improper or otherwise inconvenient forum. 

22. Headings. The headings of the paragraphs of this Agreement are inserted for convenience only and shall not be deemed to constitute
part of this Agreement or to affect the construction thereof. 
 23. Counterparts. This Agreement may be executed in one or more
counterparts, each of which shall for all purposes be deemed to be an original but all of which together shall constitute one and the same Agreement. 

[Remainder of Page Intentionally Blank] 

  
 — 18 — 

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the day and year first
above written. 
  

					
	Company:		THE GYMBOREE CORPORATION
			
			By:		  

			Name:		
			Title:		
		
	Holdco:		GIRAFFE HOLDING, INC.
			
			By:		  

			Name:		
			Title:		
		
	Giraffe A:		GIRAFFE INTERMEDIATE A, INC.
			
			By:		  

			Name:		
			Title:		
		
	Giraffe B:		GIRAFFE INTERMEDIATE B, INC.
			
			By:		  

			Name:		
			Title:		
		
	Indemnitee:		  

			Name: [NAME OF DIRECTOR]

  
 -19-

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