Document:

Exhibit 4.1

 

 

 

 

Articles of Incorporation of ABB Ltd, Zurich

as of December 20, 2010

 

This is a translation of the original German version. In case of any discrepancy, the German version shall prevail.

 

Section 1: Name, Place of Incorporation, Purpose and Duration

 

Article 1

 

Name, Place of Incorporation

 

Under the name

 

ABB Ltd

 

ABB AG

 

ABB SA

 

there exists a corporation with its place of incorporation in Zurich.

 

Article 2

 

Purpose

 

1                  The purpose of the Company is to hold interests in business enterprises, particularly in enterprises active in the areas of industry, trade and services.

 

2                  The Company may acquire, encumber, exploit or sell real estate and intellectual property rights in Switzerland and abroad and may also finance other companies.

 

3                  The Company may engage in all types of transactions and may take all measures that appear appropriate to promote, or that are related to, the purpose of the Company.

 

Article 3

 

Duration

 

The duration of the Company shall be unlimited.

 

Section 2: Share Capital

 

Article 4

 

Share Capital

 

1                  The share capital of the Company is CHF 2,378,045,525.92 and is divided into 2,308,782,064 fully paid registered shares. Each share has a par value of CHF 1.03.

 

2                  Upon resolution of the General Meeting of Shareholders, registered shares may be converted into bearer shares and bearer shares may be converted into registered shares.

 

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Article 4bis

 

Contingent Share Capital

 

1                  The share capital may be increased in an amount not to exceed CHF 216,300,000 through the issuance of up to 210,000,000 fully paid registered shares with a par value of CHF 1.03 per share,

 

a)              up to the amount of CHF 206,000,000 through the exercise of conversion rights and/or warrants granted in connection with the issuance on national or international capital markets of newly or already issued bonds or other financial market instruments by the Company or one of its group companies, and

 

b)             up to the amount of CHF 10,300,000 through the exercise of warrant rights granted to the shareholders by the Company or one of its group companies. The Board of Directors may grant warrant rights not taken up by shareholders for other purposes in the interest of the Company.

 

The pre-emptive rights of the shareholders shall be excluded in connection with the issuance of convertible or warrant-bearing bonds or other financial market instruments or the grant of warrant rights. The then current owners of conversion rights and/or warrants shall be entitled to subscribe for the new shares. The conditions of the conversion rights and/or warrants shall be determined by the Board of Directors.

 

2                  The acquisition of shares through the exercise of conversion rights and/or warrants and each subsequent transfer of the shares shall be subject to the restrictions of art. 5 of these Articles of Incorporation.

 

3                  In connection with the issuance by the Company or one of its group companies of convertible or warrant-bearing bonds or other financial market instruments, the Board of Directors shall be authorized to restrict or deny the advance subscription rights of shareholders if such issuances are for the purpose of financing or refinancing the acquisition of an enterprise, parts of an enterprise, participations or new investments or the issuance on national or international capital markets. If advance subscription rights are denied by the Board of Directors, the following shall apply: the convertible or warrant-bearing bonds or other financial market

 

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instruments shall be issued at the relevant market conditions and the new shares shall be issued pursuant to the relevant market conditions taking into account the share price and/or other comparable instruments having a market price. Conversion rights may be exercised during a maximum 10-year period, and warrants may be exercised during a maximum 7-year period, in each case from the date of the respective issuance. The advance subscription rights of the shareholders may be granted indirectly. 

 

4                  The share capital may be increased in an amount not to exceed CHF 29,723,421.73 through the issuance of up to 28,857,691 fully paid registered shares with a par value of CHF 1.03 per share by the issuance of new shares to employees of the Company and group companies. The pre-emptive and advance subscription rights of the shareholders of the Company shall thereby be excluded. The shares or rights to subscribe for shares shall be issued to employees pursuant to one or more regulations to be issued by the Board of Directors, taking into account performance, functions, levels of responsibility and profitability criteria. Shares or subscription rights may be issued to employees at a price lower than that quoted on the stock exchange.

 

5                  The acquisition of shares within the context of employee share ownership and each subsequent transfer of the shares shall be subject to the restrictions of art. 5 of these Articles of Incorporation.

 

Article 4ter

 

Authorized Share Capital

 

1                  The Board of Directors shall be authorized to increase the share capital in an amount not to exceed CHF 206,000,000 through the issuance of up to 200,000,000 fully paid registered shares with a par value of CHF 1.03 per share by not later than May 5, 2011. Increases in partial amounts shall be permitted.

 

2                  The subscription and acquisition of the new shares, as well as each subsequent transfer of the shares, shall be subject to the restrictions of art. 5 of these Articles of Incorporation.

 

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3                  The Board of Directors shall determine the date of issue of new shares, the issue price, the type of payment, the conditions for the exercise of pre-emptive rights, and the beginning date for dividend entitlement. In this regard, the Board of Directors may issue new shares by means of a firm underwriting through a banking institution, a syndicate or another third party with a subsequent offer of these shares to the shareholders. The Board of Directors may permit pre-emptive rights that have not been exercised to expire or it may place these rights and/or shares as to which pre-emptive rights have been granted but not exercised, at market conditions or use them for other purposes in the interest of the Company.

 

4                  The Board of Directors is further authorized to restrict or deny the pre-emptive rights of shareholders and allocate such rights to third parties if the shares are to be used:

 

a)              for the acquisition of an enterprise, parts of an enterprise, or participations, or for new investments, or, in case of a share placement, for the financing or refinancing of such transactions; or

 

b)             for the purpose of broadening the shareholder constituency in connection with a listing of shares on domestic or foreign stock exchanges.

 

Article 5

 

Share Register and Restrictions on Registration, Nominees

 

1                  The Company shall maintain a share register listing the surname and first name (in the case of legal entities, the company name) and address of the holders and usufructuaries of the registered shares. 

 

2                  Acquirors of registered shares shall be registered upon request in the share register as shareholders with the right to vote, provided that they expressly declare that they acquired the registered shares in their own name and for their own account. 

 

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3                  If persons fail to expressly declare in their registration applications that they hold the shares for their own account (the “Nominees”), the Board of Directors shall enter such persons in the share register with the right to vote, provided that the Nominee has entered into an agreement with the Board of Directors concerning his status and is subject to a recognized bank or financial market supervision.

 

4                  After hearing the registered shareholder or Nominee, the Board of Directors may cancel registrations in the share register, retroactive to the date of registration, if such registrations were made based on incorrect information. The relevant shareholder or Nominee shall be informed immediately as to the cancellation.

 

5                  The Board of Directors shall regulate the details and issue the instructions necessary for compliance with the preceding provisions. In special cases, it may grant exemptions from the rule concerning Nominees. The Board of Directors may delegate its duties.

 

6                  Notwithstanding paras. 2–4 of this article, acquirors of registered shares may be registered in the share register with Värdepappers- centralen VPC AB (“VPC”) in accordance with Swedish law.

 

Article 6

 

Share Certificates and Intermediated Securities

 

1                  The Company may issue its registered shares in the form of single certificates, global certificates and uncertificated securities. Under the conditions set forth by statutory law, the Company may convert its registered shares from one form into another form at any time and without the approval of the shareholders. The Company shall bear the cost of any such conversion.

 

2                  If registered shares are issued in the form of single certificates or global certificates, they shall bear the signatures of two members of the Board of Directors. These signatures may be facsimile signatures.

 

3                  The shareholder has no right to demand a conversion of the form of the registered shares. Each shareholder may, however, at any time request a written confirmation from the Company of the registered shares held by such shareholder, as reflected in the share register.

 

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4                  Intermediated securities based on registered shares of the Company cannot be transferred by way of assignment. A security interest in any such intermediated securities also cannot be granted by way of assignment.

 

5                  Uncertificated registered shares registered with Euroclear Sweden AB may be pledged in accordance with Swedish law.

 

Article 7

 

Exercise of Rights

 

1                  The Company shall only accept one representative per share.

 

2                  The right to vote and rights relating thereto under a registered share may be exercised vis-à-vis the Company only by a share-holder, usufructuary or Nominee registered in the share register with the right to vote.

 

Article 8

 

Dividend Access Facility

 

1                  The Company has established a dividend access facility under which shareholders who are resident in Sweden have the option to be registered with VPC as holders of a total of up to 600,004,716 registered shares of the Company, with suspended dividend entitlement. The claim to dividends against the Company on such registered shares shall be suspended as long as such registered shares are registered with VPC. In lieu thereof, on each such registered share, an amount equivalent to the dividend resolved on a registered share of the Company shall be paid in Swedish kronor by ABB Norden Holding AB based on the dividend entitlement on a preference share.

 

2                  In deciding on the appropriation of dividends, the General Meeting of Shareholders shall take into account that the Company will pay dividends only on shares that do not participate in the dividend access facility.

 

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Section 3: Corporate Bodies

 

A. General Meeting of Shareholders

 

Article 9

 

Competence

 

The General Meeting of Shareholders is the supreme body of the Company.

 

Article 10

 

Ordinary General Meetings

 

The Ordinary General Meeting of Shareholders shall be held each year within six months after the close of the fiscal year of the Company; the business report and the Auditors’ report, together with the Group Auditors’ report, shall be made available for inspection by the shareholders at the place of incorporation of the Company by no later than twenty days prior to the meeting. Each shareholder is entitled to request immediate delivery of a copy of these documents. Shareholders will be notified of this in writing.

 

Article 11

 

Extraordinary General Meetings

 

1                  Extraordinary General Meetings of Shareholders shall be held when deemed necessary by the Board of Directors or the Auditors.

 

2                  Furthermore, Extraordinary General Meetings of Shareholders shall be convened upon resolution of a General Meeting of Shareholders or if this is requested by one or more shareholders who represent an aggregate of at least one-tenth of the share capital and who submit a petition signed by such shareholder(s), specifying the items for the agenda and the proposals.

 

Article 12

 

Notice of General Meetings

 

1                  Notice of General Meetings of Shareholders shall be given by the Board of Directors or, if necessary, by the Auditors, by no later than twenty days prior to the meeting date. Notice of the meeting shall be given by way of an announcement appearing once in the official publication organ of the Company. Shareholders may also

 

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be informed by ordinary mail. Liquidators and representatives of bondholders shall also be entitled to call a General Meeting of Shareholders.

 

2                  The notice of a meeting shall state the items on the agenda and the proposals of the Board of Directors and of the shareholders who demanded that a General Meeting of Shareholders be held or that an item be included on the agenda and, in case of elections, the names of the nominated candidates.

 

Article 13

 

Agenda

 

1                  One or more shareholders whose combined shareholdings represent an aggregate par value of at least CHF 412,000 may demand that an item be included on the agenda of a General Meeting of Shareholders. Such inclusion must be requested in writing at least forty days prior to the meeting and shall specify the agenda items and proposals of such shareholder(s).

 

2                  No resolutions may be passed at a General Meeting of Shareholders concerning agenda items for which proper notice was not given. This provision shall not apply, however, to proposals made during a General Meeting of Shareholders to convene an Extraordinary General Meeting of Shareholders or to initiate a special audit.

 

3                  No previous notification shall be required for proposals concerning items included on the agenda and for debates as to which no vote is taken.

 

Article 14

 

Presiding Officer, Minutes, Vote Counters

 

1                  The General Meeting of Shareholders shall be held at the place of incorporation of the Company, unless the Board of Directors decides otherwise. The Chairman of the Board or, in his absence, a Vice-Chairman or any other Member appointed by the Board, shall take the chair.

 

2                  The presiding officer shall appoint the secretary and the vote counters. The minutes shall be signed by the presiding officer and the secretary.

 

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3                  The presiding officer shall have all powers and authority necessary to ensure the orderly and undisturbed conduct of the General Meeting of Shareholders.

 

Article 15

 

Proxies

 

1                  The Board of Directors shall issue procedural rules regarding participation in and representation at the General Meeting of Shareholders.

 

2                  A shareholder may be represented only by his legal representative, another shareholder with the right to vote, a corporate body (Organvertreter), an independent proxy (unabhängiger Stimmrechts-vertreter), or a depositary (Depotvertreter). All shares held by one shareholder may be represented by only one representative.

 

Article 16

 

Voting Rights

 

Subject to art. 5 para. 2 of these Articles of Incorporation, each share shall grant the right to one vote.

 

Article 17

 

Resolutions, Elections

 

1                  Unless otherwise required by law, the General Meeting of Shareholders shall pass resolutions and decide elections upon an absolute majority of the votes represented.

 

2                  Resolutions and elections shall be decided by a show of hands, unless a secret ballot is resolved by the General Meeting of Share-holders or is ordered by the presiding officer. The presiding officer may also arrange for resolutions and elections to be carried out by electronic means. Resolutions and elections carried out by electronic means are deemed to have the same effect as secret ballots.

 

3                  The presiding officer may at any time order that an election or resolution decided by a show of hands be repeated through a secret ballot if, in his view, the results of the vote are in doubt. In this case, the preceding decision by a show of hands shall be deemed to have not occurred.

 

4                  If the first ballot fails to result in an election and more than one candidate is standing for election, the presiding officer shall order a second ballot in which a relative majority shall be decisive.

 

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Article 18

 

Specific Powers of the General Meeting

 

The following powers shall be vested exclusively in the General Meeting of Shareholders: 

 

a)              adoption and amendment of the Articles of Incorporation; 

 

b)             election of the members of the Board of Directors, the Auditors, the Group Auditors and the Special Auditors;

 

c)              approval of the annual report and the consolidated financial statements;

 

d)             approval of the annual financial statements and deciding on the allocation of profits shown on the balance sheet, in particular with regard to dividends;

 

e)              granting discharge to the members of the Board of Directors and the persons entrusted with management;

 

f)                passing resolutions as to all matters reserved to the authority of the General Meeting by law or under these Articles of Incorporation or that are submitted to the General Meeting by the Board of Directors, subject to art. 716a Swiss Code of Obligations.

 

Article 19

 

Special Quorum

 

The approval of at least two-thirds of the votes represented shall be required for resolutions of the General Meeting of Shareholders with respect to:

 

a)              a modification of the purpose of the Company;

 

b)             the creation of shares with increased voting powers;

 

c)              restrictions on the transfer of registered shares and the removal of such restrictions;

 

d)             restrictions on the exercise of the right to vote and the removal of such restrictions;

 

e)              an authorized or conditional increase in share capital;

 

f)                an increase in share capital through the conversion of capital surplus, through an in-kind contribution or in exchange for an acquisition of property, and a grant of special benefits;

 

g)             the restriction or denial of pre-emptive rights;

 

h)             a transfer of the place of incorporation of the Company;

 

i)                 the dissolution of the Company.

 

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B. Board of Directors

 

Article 20

 

Number of Directors

 

The Board of Directors shall consist of no less than 7 and no more than 13 members.

 

Article 21

 

Term of Office

 

1                  The term of office of the members of the Board of Directors shall be one year. In this regard, one year shall mean the period between two Ordinary General Meetings of Shareholders.

 

2                  Members of the Board of Directors whose terms of office have expired shall be immediately eligible for re-election.

 

Article 22

 

Organization of the Board, Remuneration

 

1                  The Board of Directors shall elect from among its members one Chairman. It shall appoint a secretary who need not be a member of the Board.

 

2                  The members of the Board of Directors shall be entitled to the reimbursement of all expenses incurred in the interests of the Company, as well as remuneration for their services that is appropriate in view of their functions and responsibilities. The amount of the remuneration shall be fixed by the Board of Directors or a committee of the Board of Directors.

 

Article 23

 

Convening of Meetings

 

The Chairman shall convene meetings of the Board of Directors if and when the need arises or whenever a member or the chief executive officer so requests in writing.

 

Article 24

 

Resolutions

 

1                  In order to pass resolutions, at least a majority of the members of the Board of Directors must be present. No attendance quorum shall be required for resolutions of the Board of Directors providing for the confirmation of capital increases or for the amendment of the Articles of Incorporation in connection therewith.

 

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2                  Resolutions of the Board of Directors shall be adopted upon a majority of the votes cast. In the event of a tie, the Chairman shall have the casting vote.

 

3                  Resolutions may be passed by way of circulation (in writing), provided that no member requests oral deliberation.

 

Article 25

 

Specific Powers of the Board

 

1                  The Board of Directors has, in particular, the following nondele-gable and inalienable duties:

 

a)              the ultimate direction of the business of the Company and the issuance of the necessary instructions;

 

b)             the determination of the organization of the Company;

 

c)              the administration of accounting, financial control and financial planning;

 

d)             the appointment and removal of the persons entrusted with management and representation of the Company;

 

e)              the ultimate supervision of the persons entrusted with management of the Company, specifically in view of their compliance with law, these Articles of Incorporation, the regulations and directives;

 

f)                the preparation of business reports, the preparations for the General Meetings of Shareholders and the implementation of the resolutions adopted by the General Meetings of Share- holders;

 

g)             the adoption of resolutions concerning an increase in share capital to the extent that such power is vested in the Board of Directors (art. 651 para. 4 Swiss Code of Obligations) and of resolutions concerning the confirmation of capital increases and corresponding amendments to the Articles of Incorporation, as well as making the required report on the capital increase;

 

h)             the examination of the professional qualifications of the qualified auditors;

 

i)                 notification of the court if liabilities exceed assets.

 

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2                  In addition, the Board of Directors may pass resolutions with respect to all matters that are not reserved to the authority of the General Meeting of Shareholders by law or under these Articles of Incorporation.

 

Article 26

 

Delegation of Powers

 

Subject to art. 25 of these Articles of Incorporation, the Board of Directors may delegate management of the Company in whole or in part to individual directors or to third persons (Executive Committee) pursuant to regulations governing the internal organization.

 

Article 27

 

Signature Power

 

The due and valid representation of the Company by members of the Board of Directors or other persons shall be set forth in regulations governing the internal organization.

 

C. Auditors

 

Article 28

 

Term, Powers and Duties

 

1                  The Auditors, which shall be elected by the General Meeting of Shareholders each year, shall have the powers and duties vested in them by law.

 

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Section 4: Annual Financial Statements, Consolidated Financial Statements and Profit Allocation

 

Article 29

 

Fiscal Year, Business Report

 

1                  The fiscal year shall close as of December 31 of each year, closing for the first time on December 31, 1999. 

 

2                  For each fiscal year, the Board of Directors shall prepare a business report including the annual financial statements (consisting of the profit and loss statements, balance sheet and notes to the financial statements), the annual report and the consolidated financial statements.

 

Article 30

 

Allocation of Profit Shown on the Balance Sheet, Reserves

 

1                  The profit shown on the balance sheet shall be allocated by the General Meeting of Shareholders within the limits set by applicable law. The Board of Directors shall submit its proposals to the General Meeting of Shareholders.

 

2                  Further reserves may be taken in addition to the reserves required by law.

 

3                  Dividends that have not been collected within five years after their expiry date shall pass to the Company and be allocated to the general reserves.

 

Section 5: Announcements, Communications

 

Article 31

 

Announcements, Communications

 

1                  The official publication organ of the Company shall be the Swiss Official Gazette of Commerce.

 

2                  To the extent that personal notification is not mandated by law, all communications to the shareholders shall be deemed valid if published in the Swiss Official Gazette of Commerce. Written communications by the Company to its shareholders shall be sent by ordinary mail to the last address of the shareholder or authorized recipient entered in the share register.

 

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ABB Ltd

P. O. Box

CH-8050 Zurich

Telephone + 41 (0)43 317 71 11

Telefax      + 41 (0)43 317 44 20

www.abb.comExhibit 10.1

 

SEVERANCE AGREEMENT
 BETWEEN
 CHRISTOPHER & BANKS CORPORATION
 AND
 LARRY BARENBAUM

 

THIS AGREEMENT is to be effective as of January 10, 2011 (the “Effective Date”), by and between Christopher & Banks Corporation, a corporation duly organized and existing under the laws of the State of Delaware (the “Corporation”) and Larry Barenbaum (“Executive”).

 

PREAMBLE

 

Executive has been offered and has accepted the position of President and Chief Executive Officer (“CEO”) and his employment in that capacity commenced January 10, 2011.  Therefore based upon the mutual promises contained in this Agreement and other consideration, the parties have agreed to execute this Agreement containing the following terms and conditions:

 

ARTICLE 1
 EMPLOYMENT

 

1.1           The Corporation hereby employs Executive, and Executive agrees to be employed by the Corporation as CEO, and Executive agrees to perform such duties as are customarily incident to such position and such other duties which may be assigned to Executive from time to time by the Board of Directors (“Board”) of the Corporation or the Chair of the Board.

 

ARTICLE 2
 AT-WILL EMPLOYMENT

 

2.1           Executive acknowledges that employment with the Corporation is on an at-will basis.

 

ARTICLE 3
 DUTIES

 

3.1           Executive agrees to devote Executive’s full time and effort, to the best of Executive’s ability, to carry out the duties of CEO for the profit, benefit and advantage of the business of the Corporation.  Executive shall report directly to the Board.

 

ARTICLE 4
 COOPERATION

 

4.1           During Executive’s employment and for one (1) year thereafter, Executive agrees to cooperate fully with the Corporation, including its attorneys or accountants, in connection with any potential or actual litigation, other real or potential disputes, internal investigations or government investigations, which directly or indirectly involves the Company.  Executive agrees to appear as a witness voluntarily upon the Corporation’s request regardless of whether served with a subpoena and be available to attend depositions, court proceedings, consultations or

 

 

meetings regarding investigations, litigation or potential litigation as requested by the Corporation.  With respect to the one (1) year period following the cessation of Executive’s employment, the Company acknowledges that these cooperation obligations, if exercised, will impose on Executive’s time and could likely interfere with other commitments Executive may have in the future.  Consequently, the Company shall attempt to schedule such depositions, court proceedings, consultations or meetings in coordination with Executive’s schedule and to allow Executive to participate telephonically as appropriate but Executive recognizes that scheduling of certain court proceedings, including depositions and trials, may be beyond the Company’s control and that for some matters or proceedings Executive’s physical presence may be required.

 

4.2           During the time you are receiving severance or any other form of payment from the Company, you will not be entitled to any additional compensation for your efforts, assistance and/or cooperation pursuant to this section.  If you are no longer receiving severance or any other form of payment, then the Company agrees to compensate you for your time incurred under this Article 4 at a rate of $250.00 per hour for actual time spent attending such depositions, consultations or meetings.  The Company agrees to reimburse Executive for the out-of-pocket expenditures actually and reasonably incurred by Executive in connection with the performance of services contemplated by this Article 4, including hotel accommodations, coach airfare, transportation and meals consistent with the Company’s generally applicable expense reimbursement policies at such time.  It is expressly understood by the parties that the payment or reimbursement of expenses by the Company to Executive under this Article 4 shall be in exchange for Executive’s time and is not intended or understood to be dependent upon the character or content of any information Executive discloses in good faith in any such proceedings, meetings or consultations.

 

ARTICLE 5
 DEFINITIONS

 

5.1           “Cause” shall mean (i) any fraud, misappropriation or embezzlement by Executive in connection with the business of the Corporation and its subsidiaries and affiliates (such entities together with the Corporation collectively referred to as the “Company”), (ii) any conviction of (including any plea of guilty or no contest to) a felony or a gross misdemeanor by Executive, (iii) any gross neglect or persistent neglect by Executive to perform the duties assigned to Executive or any other act that can be reasonably expected to cause substantial economic or reputational injury to the Company (iv) any material breach of Articles 4, 6 or 7 of this Agreement; or (v) any material violation of the Company’s written policies, procedures or codes of conduct.  Provided further that in connection with clauses (iii) — (v), Executive shall first have received a written notice from the Corporation’s Board Chair that summarizes and reasonably describes the manner in which Executive has persistently neglected his duties, engaged in an act reasonably expected to cause substantial harm, materially breached Articles 4, 6 or 7 of the Agreement, or materially violated a Company policy, procedure or Code of Conduct (the “Event”) and, to the extent the Event is capable of being cured, Executive shall have fourteen (14) days to cure the same, but the Corporation is not required to give written notice of nor shall Executive have a period to cure the same or any similar failure which was the subject of an earlier written notice to Executive under this Article 5.1.

 

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5.2           “Confidential Information” means any information that is not generally known outside the Company, including trade secrets, and that is proprietary to the Company, relating to any phase of the Company’s existing or reasonably foreseeable business which is disclosed or conveyed to Executive during Executive’s employment by the Corporation including information conceived, discovered or developed by Executive.  Confidential Information includes, but is not limited to, business plans; strategic plans and initiatives; financial statements and projections; new store plans or locations; payroll and personnel records; marketing materials and plans; product designs; supplier information; customer information; customer lists; project lists; price information and cost information; or other information that is designated by the Company as “Confidential” or other similar designation.

 

ARTICLE 6
 NONCOMPETITION AND NONSOLICITATION

 

6.1           During Executive’s employment, Executive will not plan, organize or engage in any business competitive with any product or service marketed or planned for marketing by the Corporation or conspire with others to do so.

 

6.2           During Executive’s employment and for a period of one year after termination of Executive’s employment with the Corporation for any reason and by either party, whether voluntary or involuntary, Executive will not solicit, entice, or induce (or attempt to do so, directly or indirectly) any employee of the Company to leave or terminate his or her employment with the Company for employment elsewhere.  This Article 6.2 shall apply to the then-current employees of the Company and any individual who was employed by the Company at any time in the ninety (90) day period immediately prior to Executive’s last day of employment with the Corporation.

 

6.3           During Executive’s employment and for a period of one year after termination of Executive’s employment with the Corporation for any reason and by either party, whether voluntary or involuntary, Executive will not solicit, engage, or induce (or attempt to do so, directly or indirectly) any supplier, sales agent or buying agent of the Company to commence work on behalf of or to establish a relationship with a Competitor.  The post termination obligations of this Article 6.3 shall apply to the suppliers, sales agents, and buying agents of the Company as of the date of Executive’s termination and at any time in the one (1) year period immediately prior to Executive’s termination date.  For purposes of this Article 6.3, “Competitor” is defined as The Cato Corporation; Talbots, Inc.; Chico’s FAS, Inc.; Coldwater Creek, Inc.; Dress Barn, Inc.; Charming Shoppes, Inc.; New York and Company; or Ann Taylor and shall also include all divisions, subsidiaries, affiliates and successors in interest of the stores or legal entities identified in this Article 6.3.

 

6.4           If Executive is involuntarily terminated by the Corporation within twenty-four (24) months following the Effective Date other than for Cause, the Corporation shall pay Executive $250,000 over a six (6) month period, paid according to the Corporation’s normal payroll schedule and practices and subject to applicable withholdings, deductions, and tax reporting requirement, provided that Executive as of or following such termination executes and does not rescind a general release of claims as prepared by the Corporation and in favor of the Company.  If, however, Executive shall secure or has secured other employment, self-employment or a

 

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consulting position during the fourth through sixth month of the six (6) month severance period, the severance amount payable to or on behalf of Executive shall be offset and reduced by such other cash compensation earned and/or paid or payable to Executive through such employment, self-employment or consulting arrangements during the fourth through sixth month severance period. Executive agrees to immediately notify the Corporation of the amount of compensation earned or to be earned by him through such employment, self-employment or consulting during the severance period hereunder.  Further, in the absence of an applicable government subsidy with respect to COBRA coverage and provided that Executive timely elects COBRA, the Corporation shall continue to pay for the six (6) months following Executive’s termination the employer portion of the premiums for health and dental insurance coverage under the Company’s group health and dental insurance plans.  Executive will continue to be responsible to pay his portion of the premiums, if any, for such insurance coverage during this period.  The Corporation will discontinue payments under this Article 6.4 if, and at such time, Executive (i) is covered or eligible to be covered under the health and/or dental insurance policy of a new employer, or (ii) ceases to participate, for whatever reason, in the Company’s group insurance plans.  By his signature below, Executive acknowledges and agrees that the Company may modify or terminate its group insurance plans at any time and that Executive shall have the same right to participate in the Company’s group insurance plans only as is provided on an equivalent basis to the Company’s employees.  Executive further agrees to promptly provide the Corporation notice if he becomes covered or eligible to be covered under the health and/or dental insurance policy of a new employer.  In the event there is a government subsidy with respect to COBRA for which the Corporation and/or Executive is eligible at time of Executive’s termination, then such subsidy shall take precedence and be controlling and the Corporation shall not be obligated to pay the employer portion of premiums as described above but only to comply with the subsidy criteria.

 

ARTICLE 7
 CONFIDENTIAL INFORMATION AND TRADE DOCUMENTS

 

7.1           Except in the course of performing his duties for and on behalf of the Company, Executive will not directly or indirectly divulge, either during or after the term of Executive’s employment, or until such information becomes generally known, to any person not authorized by the Company to receive or use it, any Confidential Information for any purpose whatsoever.

 

7.2           All documents or other tangible property relating in any way to the business of the Company which are conceived by Executive or come into Executive’s possession during Executive’s employment shall be and remain the exclusive property of the Corporation and Executive agrees to return all such documents and tangible property to the Corporation upon termination of Executive’s employment or at such earlier time as the Corporation may request of Executive in writing.

 

ARTICLE 8
 JUDICIAL CONSTRUCTION

 

8.1           Executive believes and acknowledges that the provisions contained in this Agreement, including the covenants contained in Articles 6 and 7 of this Agreement, are fair and reasonable.  Nonetheless, it is agreed that if a court finds any of these provisions to be invalid in

 

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whole or in part, such finding shall not invalidate the covenants, nor the Agreement in its entirety, but rather the covenants shall be construed and/or bluelined, reformed or rewritten by the court as if the most restrictive covenants permissible under applicable law were contained herein.

 

ARTICLE 9
 RIGHT TO INJUNCTIVE RELIEF

 

9.1           Executive acknowledges that a breach by Executive of any of the terms of Articles 6 and 7 of this Agreement will render irreparable harm to the Corporation or its related entities.  Accordingly, the Corporation shall therefore be entitled to any and all equitable relief, including, but not limited to, injunctive relief, and to any other remedy that may be available under any applicable law or agreement between the parties, and to recover from Executive all costs of litigation including, but not limited to, attorneys’ fees and court costs.

 

ARTICLE 10
 ASSIGNMENT

 

10.1         Executive consents to and the Corporation shall have the right to assign this Agreement to its successors or assigns.  Additionally, Executive consents to and the Corporation shall have the right to assign this Agreement to any subsidiary, and all covenants or agreements hereunder shall inure to the benefit of and be enforceable by or against its successors or assigns.

 

10.2         For purposes of Article 10.1 and the possible assignment of this Agreement, the terms “successors” and “assigns” shall include any corporation which buys all or substantially all of the Corporation’s assets, or a controlling portion of its stock, or with which it merges or consolidates.

 

ARTICLE 11
 FAILURE TO DEMAND PERFORMANCE AND WAIVER

 

11.1         The Corporation’s failure to demand strict performance and compliance with any part of this Agreement during Executive’s employment or promptly demand Executive’s strict performance and compliance following Executive’s termination of employment shall not be deemed to be a waiver of the Corporation’s rights under this Agreement or by operation of law.  Any express waiver by either party of a breach of any provision of this Agreement shall not operate as or be construed as a waiver of any subsequent breach thereof.

 

ARTICLE 12
 GOVERNING LAW

 

12.1         The parties acknowledge that the Corporation’s principal place of business is located in the State of Minnesota.  The parties hereby agree that this Agreement shall be construed in accordance with the internal laws of the State of Minnesota without giving effect to any choice or conflict of law provision or rule that would cause the application of the laws of any jurisdiction other than the State of Minnesota.  Executive and the Corporation agree to submit to the exclusive jurisdiction of, and venue in, the courts of the State of Minnesota, County of

 

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Hennepin, or of the Federal District Court of Minnesota with respect to the enforcement of or of any dispute arising out of or relating to this Agreement.

 

ARTICLE 13
 SURVIVAL

 

13.1         The parties agree that Articles 6 and 7 of this Agreement, and those provisions necessary for the enforcement of Articles 6 and 7 of this Agreement, shall survive termination of this Agreement and termination of Executive’s employment for any reason.

 

ARTICLE 14
 UNDERSTANDINGS

 

14.1         Executive hereby acknowledges that (a) this Agreement constitutes good and valuable consideration in exchange for the restrictive covenants contained in Articles 6 and 7 of this Agreement, (b) Executive has carefully considered the restrictions contained in this Agreement and determined that they are reasonable; and (c) the restrictions in this Agreement will not unduly restrict Executive in securing other employment or earning a livelihood in the event of Executive’s termination from the Corporation.

 

14.2         By signing below, Executive authorizes the Corporation to notify third parties (including, but not limited to, Executive’s actual or potential future employers) of Articles 6 and 7 of this Agreement, and those provisions necessary for the enforcement of Articles 6 and 7 of this Agreement, and Executive’s responsibilities thereunder and Executive shall be promptly provided copies of or included as a recipient on any such notice.

 

14.3         Executive represents and warrants to the Corporation that Executive is not under, or bound to be under in the future, any obligation to any person, firm, or corporation that is or would be inconsistent or in conflict with this Agreement or would prevent, limit, or impair in any way the performance by Executive of Executive’s obligations hereunder.

 

14.4         The Company and Executive acknowledge that the Compensation Committee (“Committee”) has previously requested that Company management develop a formal severance policy for all executives, which is to include, among other things, a clawback provision and that, in conjunction with this request, a new form of severance agreement may be approved by the Committee.  In such event, Company and Executive agree that the new form of severance agreement shall replace this agreement; provided, however, the severance amount to be paid to Executive under such Agreement shall not be less than $250,000.

 

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IN WITNESS WHEREOF, the Corporation has hereunto signed its name and Executive hereunder has signed Executive’s name, all as of the day and year written below.

 

	
 
    	
 
    	
 
    	
 
    	
CHRISTOPHER &   BANKS CORPORATION
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Date:
    	
January   31, 2011
    	
 
    	
 
    	
By:
    	
/s/   Luke R. Komarek
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
/s/ Sandra Lyn Miller
    	
 
    	
 
    	
 
    	
Its:
    	
Senior   Vice President and General Counsel
    
	
Witness
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
LARRY   BARENBAUM
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Date:
    	
January   31, 2011
    	
 
    	
 
    	
/s/ Larry   Barenbaum
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
/s/ Ellen A. Sanko
    	
 
    	
 
    	
 
    	
 
    
	
Witness
    	
 
    	
 
    	
 
    	
 
    
							

 

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