Document:

EXHIBIT 10.11(b)

 

MF ACQUISITION CORPORATION

NONQUALIFIED ROLLOVER COMMON STOCK OPTION AGREEMENT

 

WHEREAS, MF
Acquisition Corporation has entered into an Agreement and Plan of Merger, dated
as of March 16, 2004 (as amended through the date hereof, the “Merger
Agreement”) among Maidenform, Inc., MF Acquisition Corporation, MF Merger
Corporation and Ares Corporate Opportunities Fund, L.P. under which Maidenform, Inc.
will merge with MF Merger Corporation, with Maidenform, Inc. surviving the
merger as a subsidiary of MF Acquisition Corporation (the “Merger”); and

 

WHEREAS, the
Employee (as defined below) holds a nonqualified option to purchase shares of
common stock of Maidenform, Inc. (the “Old Option) and references herein to
the Old Option relate solely to that portion of such option as relate to 14,942.075
shares of common stock of Maidenform, Inc. that may be purchased for $5.73
per share and to which an Option Adjustment Amount of $5.64 per share is related,
and which were granted on November 26, 2001; and

 

WHEREAS,
pursuant to the Merger Agreement, MF Acquisition Corporation is granting the
stock option set forth in this Agreement in substitution for the Old Option;
and

 

WHEREAS,
following the grant of this stock option, the Old Option will be terminated and
have no further force or effect; and

 

WHEREAS, this
Nonqualified Rollover Common Stock Option Agreement has been entered into in
connection with discussions and negotiations regarding the terms and conditions
of Employee’s (as defined below) employment following the Merger.

 

NOW,
THEREFORE, in consideration of the mutual covenants and premises set forth
herein, the parties hereto agree as follows:

 

This
Nonqualified Rollover Common Stock Option Agreement (this “Agreement”) is made
as of May 11, 2004 by and between MF Acquisition Corporation, a Delaware
corporation (the “Corporation”), and Thomas J. Ward (“Employee”).  This option is granted in substitution for
the Old Option, and it is granted pursuant to and is subject to the MF
Acquisition Corporation 2004 Rollover Stock Option Plan (the “Plan”).  The termination of the Old Option will take
effect immediately prior to the Merger and the grant of this stock option shall
be conditioned and effective upon the occurrence of the Merger.  In the event the Merger does not occur, the
Old Option shall continue in effect in accordance with its terms.

 

1.                                       The Corporation
grants Employee an option to purchase the number of shares of Common Stock
described in Annex A at the exercise price and on the terms and conditions
contained in Annex A, this Agreement and the general terms and conditions set
forth in the Plan.  At the time of
exercise of this option, Employee shall also receive an amount of cash equal to
the Option Adjustment Amount per Share described in Annex A for each share of Common
Stock received on exercise.

 

 

2.                                       Employee may
exercise the option, in whole or in part, at any time prior to the expiration
date described in Annex A, except that Employee may not exercise the option for
a fraction of a share of Common Stock (unless the number of shares to be
purchased is the total balance for which the option is then exercisable).  In order to exercise this option Employee
must also exercise his or her option to purchase Preferred Stock granted under
a Nonqualified Rollover Preferred Stock Option Agreement of even date herewith
for a number of shares of Preferred Stock equal to the lesser of (i) the
number of shares of Common Stock for which this option is exercised divided by
55 (subject to any necessary rounding due to the inability to issue fractional
shares) or (ii) the number of shares of Preferred Stock remaining subject
to such option, if any.

 

3.                                       To exercise this
option, Employee shall submit to the Secretary of the Corporation no more than
ten (10) days prior to the effective date of exercise, a notice of
exercise substantially in the form of Annex B, the purchase price for the Common
Stock to be acquired upon exercise and such other information as may be
required from time to time by the Committee administering the Plan in
accordance with the terms of the Plan. 
The purchase price may be paid by certified or bank check, or by such
other method as the Committee may from time to time prescribe.

 

4.                                       By acceptance of
this option, Employee agrees to reimburse the Corporation for any taxes or
other obligations required by any government to be withheld or otherwise
deducted and paid by the Corporation with respect to the issuance or
disposition of the Common Stock subject to the option.  In lieu thereof, the Corporation shall have
the right to withhold the amount of such taxes from any other sums due or to
become due from the Corporation to Employee. 
The Corporation may, in its discretion, hold the stock certificate or
certificates to which Employee is entitled upon the exercise of the option as
security for the payment of such withholding tax liability until cash
sufficient to pay that liability has been accumulated.  Employee shall not have any of the rights of
a shareholder with respect to the Common Stock underlying the option until the
option is exercised and Employee receives the purchased Common Stock.

 

5.                                       If Employee
incurs a Termination of Employment prior to the expiration date, this option
shall remain exercisable until the expiration date described in Annex A.

 

6.                                       This option and
shares purchased on the exercise of this option shall be subject to the terms
of the Stockholders Agreement dated as of May 6, 2004 among the
Corporation and the investors named therein, as the same may be amended from
time to time (the “Stockholders Agreement”). 
This option shall be transferable by Employee as set forth in the
Stockholders Agreement.

 

7.                                       The Corporation
represents and warrants to Employee that the shares subject to this option have
been duly reserved for issuance and upon issuance and payment of the exercise
price, will be duly authorized, validly issued, fully paid and non-assessable,
and free of all liens and encumbrances other than pursuant to the Stockholders
Agreement.

 

8.                                       If the
Corporation, in its sole discretion, shall determine that it is necessary or
desirable, to comply with applicable securities laws and/or corporate law or
otherwise, the certificate

 

2

 

or certificates representing the Common Stock purchased pursuant to the
exercise of the option shall bear an appropriate legend in form and substance,
as determined by the Corporation, giving notice of applicable restrictions on
transfer under or with respect to such laws.

 

9.                                       Employee
covenants and agrees with the Corporation that if, at the time of exercise of
the option, there does not exist a Registration Statement on an appropriate
form under the Securities Act of 1933, as amended (the “Act”), which
Registration Statement shall have become effective and shall include a
prospectus that is current with respect to the Common Stock subject to the
option, then Employee shall execute and deliver a certificate to the
Corporation indicating (i) that he is purchasing the Common Stock for his
own account and not with a view to the resale or distribution thereof, (ii) that
any subsequent offer for sale or sale of any such Common Stock shall be made
either pursuant to (x) a Registration Statement on an appropriate form under
the Act, which Registration Statement shall have become effective and shall be
current with respect to the Common Stock being offered and sold, or (y) a
specific exemption from the registration requirements of the Act and any rules and
regulations thereunder and applicable state securities laws and regulations,
but in claiming such exemption, Employee shall, prior to any offer for sale or
sale of such Common Stock, obtain a favorable written opinion from counsel for
or approved by the Corporation as to the applicability of such exemption and (iii) that
Employee agrees that the certificate or certificates evidencing such Common
Stock shall bear a legend to the effect of the foregoing.

 

10.                                 Employee covenants and
agrees that Employee shall not, without the prior written consent of the
Corporation, sell or otherwise dispose of any shares of stock of the
Corporation during such period (a “Market Stand Off Period”) as the Corporation
or its underwriters shall establish in connection with the filing of a
Registration Statement.  The Market Stand
Off Period shall not exceed one hundred eighty (180) days.  The Market Stand Off Period may be
supplemented or superseded by any additional or conflicting restrictions in the
Stockholders Agreement.

 

11.                                 This Agreement is not
a contract of employment and the terms of Employee’s employment shall not be
affected hereby or by any agreement referred to herein except to the extent
specifically so provided herein or therein. 
Nothing herein shall be construed to impose any obligation on the
Corporation to continue Employee’s employment, and it shall not impose any
obligation on Employee’s part to remain in the employ of the Corporation.

 

12.                                 Employee acknowledges
and agrees that neither the Corporation, its shareholders nor its directors and
officers, has any duty or obligation to disclose to Employee any material
information regarding the business of the Corporation or affecting the value of
the shares before or at the time of a termination of the employment of Employee
by the Corporation, including, without limitation, any information concerning
plans for the Corporation to make a public offering of its securities or to be
acquired by or merged with or into another firm or entity.

 

3

 

13.                                 The parties hereto
intend that the substitution of this option for the Old Option will not result
in income tax liability at the time of such substitution and that Employee will
be subject to income tax at ordinary income rates upon exercise of the option
on the excess of the value of the Shares received on exercise plus the Option Adjustment
Amount received over the exercise price. 
If it is determined that income tax is payable upon the substitution, the
Corporation will gross-up Employee in cash, on an after-tax basis, for any net
additional income tax cost (taking into account the time value of money) of Employee
(including any interest and penalties) due to acceleration of the taxable event
to the date of the substitution (taking into account that it would only be an
acceleration of the time of payment of ordinary income tax and also taking into
account any differences in applicable tax rates).  The Corporation’s obligation under the prior
sentence shall terminate immediately following the closing of an initial public
offering of the Common Stock of the Corporation and the expiration of any
Market Stand Off Period resulting therefrom. 
Any gross-up payable hereunder shall be paid to Employee at the time Employee
pays the tax; provided, however, that Employee shall not pay the tax
without the written consent of the Corporation, which consent shall not be
unreasonably withheld, delayed or conditioned. 
If the Corporation does not consent to Employee’s payment of the tax,
the Corporation will be responsible for the reasonable costs (including attorneys
fees) incurred by Employee in disputing the tax, so long as the attorney
representing Employee has been selected by the Corporation or selected by
Employee and approved by the Corporation, which approval shall not be
unreasonably withheld, delayed or conditioned. 
If a gross-up is payable under this Section 13 prior to the time of
exercise of this option, if permissible under applicable law, this Section 13
will be effectuated by a nonrecourse loan from the Corporation to Employee in
the amount of the income tax (plus any interest and penalties) payable by
Employee on the option substitution with respect to this option, which loan
shall be due upon exercise or other settlement of this option, at which time
the net amount finally payable hereunder shall be computed and final settlement
made.

 

14.                                 This option is subject
to adjustment for such dilution events as are provided in, and subject to, the
Plan.

 

15.                                 Employee acknowledges
and agrees that the Old Option has terminated effective immediately prior to
the Merger and Employee shall have no right whatsoever to payments under the
Merger Agreement or the Old Option, that the Old Option shall be of no further
force or effect and that Maidenform, Inc. and all parties to the Merger
Agreement may rely upon such termination having occurred as third party
beneficiaries hereof.  In the event the
Merger does not occur, the Old Option shall continue in effect in accordance
with its terms.

 

16.                                 This Agreement
supersedes any conflicting provisions in the Exchange and Support Agreement
dated March 15, 2004.

 

17.                                 By signing this
Agreement, the holder of this option (the “Holder”) represents, warrants and
agrees that: (i) this option and the underlying securities (collectively,
the “Securities”) are being acquired for Holder’s own account and not with the
view to, or for resale in connection with, any distribution, (2) Holder
acknowledges that he or she is an accredited investor within the meaning of Rule 501
of Regulation D under the Act and has such

 

4

 

knowledge, skill and experience in business, financial and investment
matters that he or she is capable of evaluating the merits, risks and
consequences of an investment in the Securities and is able to bear the
economic risk of loss of this investment; (3) Holder has made such
independent investigation of the Corporation, Maidenform and the transactions
contemplated by the Merger Agreement as he or she deems necessary or advisable
in connection herewith; and (4) the Securities are the subject of material
transfer restrictions.

 

[signature page follows]

 

5

 

By execution
below, the Corporation and Employee accept this option and acknowledge and
agree that this option is granted under and governed by the terms and
conditions of this Nonqualified Rollover Common Stock Option Agreement, Annex A
hereto and the Plan, both of which are hereby made a part of this document.

 

	
   

  	
  MF ACQUISITION CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ Thomas J. Ward

  	
   

  	
  By:

  	
  /s/ David B. Kaplan

  	
   

  
	
  Thomas J. Ward

  	
  Title:

  	
  David B. Kaplan

  President

  	
   

  
					

 

6

 

ANNEX A TO

 

MF ACQUISITION CORPORATION

NONQUALIFIED ROLLOVER COMMON STOCK OPTION AGREEMENT

 

	
  GRANTED
  TO:

  	
   

  	
  Thomas J.
  Ward (“Employee”)

  
	
   

  	
   

  	
   

  
	
  DATE OF
  GRANT:

  	
   

  	
  May 11,
  2004

  
	
   

  	
   

  	
   

  
	
  EXPIRATION
  DATE(a):

  	
   

  	
  November 26,
  2011

  
	
   

  	
   

  	
   

  
	
  NUMBER OF
  UNDERLYING SHARES:

  	
   

  	
  89,143.74
  Shares of Common Stock

  
	
   

  	
   

  	
   

  
	
  TYPE OF
  OPTION:

  	
   

  	
  NonQualified
  Stock Option

  
	
   

  	
   

  	
   

  
	
  EXERCISE
  PRICE:

  	
   

  	
  $0.96 per
  Share

  
	
   

  	
   

  	
   

  
	
  VESTING
  SCHEDULE:

  	
   

  	
  Employee
  shall be vested in, and this option shall be exercisable as to, 100% of the
  Shares subject to this option on the Date of Grant.

  
	
   

  	
   

  	
   

  
	
  OPTION
  ADJUSTMENT AMOUNT:

  	
   

  	
  $0.95 per
  Share

  

 

(a)                                  Ten
years from original date of grant of Old Options.

 

 

ANNEX B TO

 

MF ACQUISITION CORPORATION

NONQUALIFIED ROLLOVER COMMON STOCK OPTION AGREEMENT

 

SAMPLE NOTICE OF EXERCISE

 

MF Acquisition
Corporation

c/o Maidenform, Inc.

154 Avenue E

Bayonne, NJ  07002

 

Attn:  Corporate Secretary

 

To the
Corporate Secretary:

 

I hereby
exercise my stock option granted under the Nonqualified Rollover Common Stock Option
Agreement dated May 6, 2004 between MF Acquisition Corporation (the “Corporation”)
and                                
(the “Agreement”) and notify you of my desire to purchase the shares of Common
Stock that have been offered pursuant to the Agreement as described below.

 

I shall pay
for the shares by delivery of a certified or bank check payable to the
Corporation in the amount described below in full payment for such shares plus
all amounts required to be withheld by the Corporation under state, federal or
local law as a result of such exercise or shall provide such documentation as
is satisfactory to the Corporation demonstrating that I am exempt from any
withholding requirement.

 

This notice of
exercise is delivered this          day
of                        
(month)          (year).

 

	
  No. Shares
  to be Acquired

  	
   

  	
  Type of Option

  	
   

  	
  Exercise Price

  	
   

  	
  Total

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Nonqualified

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Estimated Withholding

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Amount Paid

  	
   

  	
   

  	
   

  	
   

  

 

	
  Very truly yours,

  	
  Employee’s Name and Mailing Address

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Employee’s Social Security Number

  
	
  Signature of EmployeeEXHIBIT 10.11(c)

 

MF ACQUISITION CORPORATION

NONQUALIFIED ROLLOVER COMMON STOCK OPTION AGREEMENT

 

WHEREAS, MF Acquisition Corporation has entered into an Agreement and
Plan of Merger, dated as of March 16, 2004 (as amended through the date
hereof, the “Merger Agreement”) among Maidenform, Inc., MF Acquisition
Corporation, MF Merger Corporation and Ares Corporate Opportunities Fund, L.P.
under which Maidenform, Inc. will merge with MF Merger Corporation, with
Maidenform, Inc. surviving the merger as a subsidiary of MF Acquisition
Corporation (the “Merger”); and

 

WHEREAS, the Employee (as defined below) holds a nonqualified option to
purchase shares of common stock of Maidenform, Inc. (the “Old Option) and
references herein to the Old Option relate solely to that portion of such
option as relate to 23,929.88 shares of common stock of Maidenform, Inc. that
may be purchased for $6.04 per share and to which an Option Adjustment Amount
of $5.64 per share is related, and which were granted on January 28, 2002;
and

 

WHEREAS, pursuant to the Merger Agreement, MF Acquisition Corporation
is granting the stock option set forth in this Agreement in substitution for
the Old Option; and

 

WHEREAS, following the grant of this stock option, the Old Option will
be terminated and have no further force or effect; and

 

WHEREAS, this Nonqualified Rollover Common Stock Option Agreement has
been entered into in connection with discussions and negotiations regarding the
terms and conditions of Employee’s (as defined below) employment following the
Merger.

 

NOW, THEREFORE, in consideration of the mutual covenants and premises
set forth herein, the parties hereto agree as follows:

 

This Nonqualified Rollover Common Stock Option Agreement (this “Agreement”)
is made as of May 10, 2004 by and between MF Acquisition Corporation, a
Delaware corporation (the “Corporation”), and Maurice S. Reznik (“Employee”).  This option is granted in substitution for
the Old Option, and it is granted pursuant to and is subject to the MF
Acquisition Corporation 2004 Rollover Stock Option Plan (the “Plan”).  The termination of the Old Option will take
effect immediately prior to the Merger and the grant of this stock option shall
be conditioned and effective upon the occurrence of the Merger.  In the event the Merger does not occur, the
Old Option shall continue in effect in accordance with its terms.

 

1.                                       The Corporation
grants Employee an option to purchase the number of shares of Common Stock
described in Annex A at the exercise price and on the terms and conditions
contained in Annex A, this Agreement and the general terms and conditions set
forth in the Plan.  At the time of
exercise of this option, Employee shall also receive an amount of cash equal to
the Option Adjustment Amount per Share described in Annex A for each share of
Common Stock received on exercise.

 

 

2.                                       Employee may
exercise the option, in whole or in part, at any time prior to the expiration
date described in Annex A, except that Employee may not exercise the option for
a fraction of a share of Common Stock (unless the number of shares to be
purchased is the total balance for which the option is then exercisable).  In order to exercise this option Employee
must also exercise his or her option to purchase Preferred Stock granted under
a Nonqualified Rollover Preferred Stock Option Agreement of even date herewith
for a number of shares of Preferred Stock equal to the lesser of (i) the
number of shares of Common Stock for which this option is exercised divided by
55 (subject to any necessary rounding due to the inability to issue fractional
shares) or (ii) the number of shares of Preferred Stock remaining subject
to such option, if any.

 

3.                                       To exercise this
option, Employee shall submit to the Secretary of the Corporation no more than
ten (10) days prior to the effective date of exercise, a notice of exercise
substantially in the form of Annex B, the purchase price for the Common
Stock to be acquired upon exercise and such other information as may be
required from time to time by the Committee administering the Plan in
accordance with the terms of the Plan. 
The purchase price may be paid by certified or bank check, or by such
other method as the Committee may from time to time prescribe.

 

4.                                       By acceptance of
this option, Employee agrees to reimburse the Corporation for any taxes or
other obligations required by any government to be withheld or otherwise
deducted and paid by the Corporation with respect to the issuance or
disposition of the Common Stock subject to the option.  In lieu thereof, the Corporation shall have
the right to withhold the amount of such taxes from any other sums due or to
become due from the Corporation to Employee. 
The Corporation may, in its discretion, hold the stock certificate or
certificates to which Employee is entitled upon the exercise of the option as
security for the payment of such withholding tax liability until cash
sufficient to pay that liability has been accumulated.  Employee shall not have any of the rights of
a shareholder with respect to the Common Stock underlying the option until the
option is exercised and Employee receives the purchased Common Stock.

 

5.                                       If Employee
incurs a Termination of Employment prior to the expiration date, this option
shall remain exercisable until the expiration date described in Annex A.

 

6.                                       This option and
shares purchased on the exercise of this option shall be subject to the terms
of the Stockholders Agreement dated as of May 6, 2004 among the
Corporation and the investors named therein, as the same may be amended from
time to time (the “Stockholders Agreement”). 
This option shall be transferable by Employee as set forth in the
Stockholders Agreement.

 

7.                                       The Corporation
represents and warrants to Employee that the shares subject to this option have
been duly reserved for issuance and upon issuance and payment of the exercise
price, will be duly authorized, validly issued, fully paid and non-assessable,
and free of all liens and encumbrances other than pursuant to the Stockholders
Agreement.

 

8.                                       If the
Corporation, in its sole discretion, shall determine that it is necessary or
desirable, to comply with applicable securities laws and/or corporate law or
otherwise, the certificate

 

2

 

or certificates representing the Common Stock purchased pursuant to the
exercise of the option shall bear an appropriate legend in form and substance,
as determined by the Corporation, giving notice of applicable restrictions on
transfer under or with respect to such laws.

 

9.                                       Employee
covenants and agrees with the Corporation that if, at the time of exercise of
the option, there does not exist a Registration Statement on an appropriate
form under the Securities Act of 1933, as amended (the “Act”), which
Registration Statement shall have become effective and shall include a
prospectus that is current with respect to the Common Stock subject to the
option, then Employee shall execute and deliver a certificate to the
Corporation indicating (i) that he is purchasing the Common Stock for his own
account and not with a view to the resale or distribution thereof, (ii) that
any subsequent offer for sale or sale of any such Common Stock shall be made
either pursuant to (x) a Registration Statement on an appropriate form under
the Act, which Registration Statement shall have become effective and shall be
current with respect to the Common Stock being offered and sold, or (y) a
specific exemption from the registration requirements of the Act and any rules
and regulations thereunder and applicable state securities laws and
regulations, but in claiming such exemption, Employee shall, prior to any offer
for sale or sale of such Common Stock, obtain a favorable written opinion from
counsel for or approved by the Corporation as to the applicability of such
exemption and (iii) that Employee agrees that the certificate or certificates
evidencing such Common Stock shall bear a legend to the effect of the
foregoing.

 

10.                                 Employee covenants and
agrees that Employee shall not, without the prior written consent of the
Corporation, sell or otherwise dispose of any shares of stock of the
Corporation during such period (a “Market Stand Off Period”) as the Corporation
or its underwriters shall establish in connection with the filing of a
Registration Statement.  The Market Stand
Off Period shall not exceed one hundred eighty (180) days.  The Market Stand Off Period may be
supplemented or superseded by any additional or conflicting restrictions in the
Stockholders Agreement.

 

11.                                 This Agreement is not
a contract of employment and the terms of Employee’s employment shall not be
affected hereby or by any agreement referred to herein except to the extent
specifically so provided herein or therein. 
Nothing herein shall be construed to impose any obligation on the Corporation
to continue Employee’s employment, and it shall not impose any obligation on
Employee’s part to remain in the employ of the Corporation.

 

12.                                 Employee acknowledges
and agrees that neither the Corporation, its shareholders nor its directors and
officers, has any duty or obligation to disclose to Employee any material
information regarding the business of the Corporation or affecting the value of
the shares before or at the time of a termination of the employment of Employee
by the Corporation, including, without limitation, any information concerning
plans for the Corporation to make a public offering of its securities or to be
acquired by or merged with or into another firm or entity.

 

3

 

13.                                 The parties hereto
intend that the substitution of this option for the Old Option will not result
in income tax liability at the time of such substitution and that Employee will
be subject to income tax at ordinary income rates upon exercise of the option
on the excess of the value of the Shares received on exercise plus the Option
Adjustment Amount received over the exercise price.  If it is determined that income tax is
payable upon the substitution, the Corporation will gross-up Employee in cash,
on an after-tax basis, for any net additional income tax cost (taking into
account the time value of money) of Employee (including any interest and
penalties) due to acceleration of the taxable event to the date of the
substitution (taking into account that it would only be an acceleration of the
time of payment of ordinary income tax and also taking into account any
differences in applicable tax rates). 
The Corporation’s obligation under the prior sentence shall terminate
immediately following the closing of an initial public offering of the Common
Stock of the Corporation and the expiration of any Market Stand Off Period
resulting therefrom.  Any gross-up
payable hereunder shall be paid to Employee at the time Employee pays the tax; provided,
however, that Employee shall not pay the tax without the written consent of
the Corporation, which consent shall not be unreasonably withheld or
delayed.  If a gross-up is payable under
this Section 13 prior to the time of exercise of this option, it is
intended that, if permissible under applicable law, this Section 13 will
be effectuated by a nonrecourse loan from the Corporation to Employee in the
amount of the income tax (plus any interest and penalties) payable by Employee
on the option substitution with respect to this option, which loan shall be due
upon exercise or other settlement of this option, at which time the net amount
finally payable hereunder shall be computed and final settlement made.

 

14.                                 This option is subject
to adjustment for such dilution events as are provided in, and subject to, the
Plan.

 

15.                                 Employee acknowledges
and agrees that the Old Option has terminated effective immediately prior to
the Merger and Employee shall have no right whatsoever to payments under the
Merger Agreement or the Old Option, that the Old Option shall be of no further
force or effect and that Maidenform, Inc. and all parties to the Merger
Agreement may rely upon such termination having occurred as third party
beneficiaries hereof.  In the event the
Merger does not occur, the Old Option shall continue in effect in accordance
with its terms.

 

16.                                 This Agreement
supersedes any conflicting provisions in the Exchange and Support Agreement
dated March 15, 2004.

 

17.                                 By signing this
Agreement, the holder of this option (the “Holder”) represents, warrants and
agrees that: (i) this option and the underlying securities (collectively, the “Securities”)
are being acquired for Holder’s own account and not with the view to, or for
resale in connection with, any distribution, (2) Holder acknowledges that he or
she is an accredited investor within the meaning of Rule 501 of Regulation D
under the Act and has such knowledge, skill and experience in business,
financial and investment matters that he or she is capable of evaluating the
merits, risks and consequences of an investment in the Securities and is able
to bear the economic risk of loss of this investment; (3) Holder has made such
independent investigation of the Corporation, Maidenform and the transactions

 

4

 

contemplated by the Merger Agreement as he or she deems necessary or
advisable in connection herewith; and (4) the Securities are the subject of
material transfer restrictions.

 

[signature page follows]

 

5

 

By execution below, the Corporation and Employee accept this option and
acknowledge and agree that this option is granted under and governed by the
terms and conditions of this Nonqualified Rollover Common Stock Option
Agreement, Annex A hereto and the Plan, both of which are hereby made a part of
this document.

 

	
   

  	
  MF ACQUISITION CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ Maurice S. Reznik

  	
   

  	
  By:

  	
  /s/ David B. Kaplan

  	
   

  
	
  Maurice S. Reznik

  	
  Title:

  	
  David B. Kaplan

  President

  	
   

  
					

 

6

 

ANNEX A TO

 

MF ACQUISITION CORPORATION

NONQUALIFIED ROLLOVER COMMON STOCK OPTION AGREEMENT

 

	
  GRANTED
  TO:

  	
   

  	
  Maurice S.
  Reznik (“Employee”)

  
	
   

  	
   

  	
   

  
	
  DATE OF
  GRANT:

  	
   

  	
  May 11, 2004

  
	
   

  	
   

  	
   

  
	
  EXPIRATION
  DATE(a):

  	
   

  	
  January 28,
  2012

  
	
   

  	
   

  	
   

  
	
  NUMBER OF
  UNDERLYING SHARES:

  	
   

  	
  142,764.57
  Shares of Common Stock

  
	
   

  	
   

  	
   

  
	
  TYPE OF
  OPTION:

  	
   

  	
  NonQualified
  Stock Option

  
	
   

  	
   

  	
   

  
	
  EXERCISE
  PRICE:

  	
   

  	
  $1.01 per
  Share

  
	
   

  	
   

  	
   

  
	
  VESTING
  SCHEDULE:

  	
   

  	
  Employee
  shall be vested in, and this option shall be exercisable as to, 100% of the
  Shares subject to this option on the Date of Grant.

  
	
   

  	
   

  	
   

  
	
  OPTION
  ADJUSTMENT AMOUNT:

  	
   

  	
  $0.95 per
  Share

  

 

(a)                                  Ten
years from original date of grant of Old Options.

 

 

ANNEX B TO

 

MF ACQUISITION CORPORATION

NONQUALIFIED ROLLOVER COMMON STOCK OPTION AGREEMENT

 

SAMPLE NOTICE OF EXERCISE

 

MF Acquisition
Corporation

c/o Maidenform, Inc.

154 Avenue E

Bayonne, NJ  07002

 

Attn:  Corporate Secretary

 

To the
Corporate Secretary:

 

I hereby
exercise my stock option granted under the Nonqualified Rollover Common Stock
Option Agreement dated May 6, 2004 between MF Acquisition Corporation (the
“Corporation”) and                              
(the “Agreement”) and notify you of my desire to purchase the shares of Common
Stock that have been offered pursuant to the Agreement as described below.

 

I shall pay
for the shares by delivery of a certified or bank check payable to the
Corporation in the amount described below in full payment for such shares plus
all amounts required to be withheld by the Corporation under state, federal or
local law as a result of such exercise or shall provide such documentation as
is satisfactory to the Corporation demonstrating that I am exempt from any
withholding requirement.

 

This notice of
exercise is delivered this            day
of                        (month)              (year).

 

	
  No. Shares to be Acquired

  	
   

  	
  Type of Option

  	
   

  	
  Exercise Price

  	
   

  	
  Total

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Nonqualified

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Estimated Withholding

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Amount
  Paid

  	
   

  	
   

  	
   

  	
   

  

 

	
  Very truly
  yours,

  	
  Employee’s
  Name and Mailing Address

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Employee’s
  Social Security Number

  	
   

  
	
  Signature of
  Employee

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00086-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00086-of-00352.parquet"}]]