Document:

Exhibit 10.6

Exhibit 10.6

	 	 	 
	STATE OF NORTH CAROLINA

	 	AMENDED AND RESTATED

EXECUTIVE

	COUNTY OF MECKLENBURG	 	SEVERANCE AGREEMENT

     THIS AMENDED AND RESTATED EXECUTIVE SEVERANCE AGREEMENT, entered into as of April 24, 2008, by
and between Lance, Inc., a North Carolina corporation, hereinafter referred to as the “Company”,
and Earl D. Leake, hereinafter referred to as “Executive”;

STATEMENT OF PURPOSE

     On November 7, 1997, the Company and Executive entered into an Executive Severance Agreement
(the “Prior Agreement”) pursuant to which the Company continued Executive’s employment as Treasurer
and Assistant Secretary of the Company and provided Executive with certain benefits under the
Lance, Inc. Key Executive Employee Benefit Plan. Executive currently holds the title of Senior
Vice President of Human Resources and holds various other positions with the Company and its
Affiliates. The Prior Agreement provides Executive certain benefits in the event of Executive’s
termination of employment under certain circumstances prior to a Change in Control and in the event
of Executive’s Retirement. The Executive and the Company previously amended the Prior Agreement by
Amendments dated July 26, 2001 and October 21, 2004 to (i) modify the methodology for determining
the “current value” of the retirement benefits payable under the Executive Severance Agreement and
(ii) provide for the funding of a “grantor” trust related to the retirement benefits payable under
the Executive Severance Agreement in certain circumstances following a “Change in Control.”

     The Executive and the Company now desire to amend and restate the Prior Agreement, as
previously amended, for purposes of compliance with Internal Revenue Code Section 409A and the
final regulations issued thereunder.

     NOW, THEREFORE, in consideration of the Statement of Purpose and the terms and provisions of
this Agreement, the parties hereto mutually agree as follows:

     1. Definitions. Capitalized terms used in this Agreement that (i) are not expressly
defined herein and (ii) are defined in the Compensation and Benefits Assurance Agreement shall have
the respective meanings given to those terms in the Compensation and Benefits Assurance Agreement.
In addition, as used herein, the following terms shall have the following meanings:

	 	(a)	 	“Cause” means:

	 	(i)	 	Executive’s failure to devote his
best efforts and substantially full time during normal
business hours to the discharge of the duties and
responsibilities of

 

 

	 	 	 	Executive’s position reasonably assigned to him, other
than during reasonable periods of vacation and other
reasonable leaves of absence commensurate with
Executive’s position and length of service; or

	 
	 	(ii)	 	A material and willful breach of
Executive’s fiduciary duties to the Company and its
stockholders; or

	 
	 	(iii)	 	In connection with the discharge
of Executive’s duties with the Company, one or more material
acts of fraud or dishonesty or gross abuse of authority; or

	 
	 	(iv)	 	Executive’s commission of any
willful act involving moral turpitude which materially and
adversely affects (A) the name and good will of the Company
or (B) the Company’s relationship with its employees,
customers or suppliers; or

	 
	 	(v)	 	Executive’s habitual and
intemperate use of alcohol or drugs to the extent that the
same materially interferes with Executive’s ability to
competently, diligently and substantially perform the duties
of his employment.

	 	(b)	 	“Compensation and Benefits Assurance Agreement” means
that certain Compensation and Benefits Assurance Agreement between Executive
and the Company entered into on November 7, 1997, as amended.

	 
	 	(c)	 	“Current Annual Salary” means the amount of Base
Salary actually paid to Executive during the 52-week year immediately prior to
his Termination of Employment.

	 
	 	(d)	 	“Disability” means the inability, by reason of
physical or mental infirmity or both, of an apparently permanent nature of
Executive to perform satisfactorily the duties then assigned to him or the
duties of any other executive position to which the Board is willing to assign
him; Disability must be determined by the Board and shall be based upon
certification of such Disability by an independent qualified physician or
other credible medical evidence, if available.

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	 	(e)	 	“Payment Period” means the time beginning with the
Period following the Period in which Executive’s Termination of Employment
occurs and ending upon the earlier of (i) the end of the Period during which
occurs the fifteenth anniversary of the date of Executive’s Termination of
Employment or (ii) the last day of the Company’s fiscal year during which
occurs the seventy-fifth anniversary of Executive’s birth.

	 
	 	(f)	 	“Period” means the Company’s accounting period as
hereinafter described. In accordance with the provisions of §441(f) of the
Internal Revenue Code of 1986, as amended, the Company uses a fiscal year
varying from 52 to 53 weeks ending on the last Saturday in December in each
year, which fiscal year consists of 13 accounting periods of 4 weeks each,
except that in a year consisting of 53 weeks, the last accounting period
consists of 5 weeks. In the event that the Company changes its fiscal year
for income tax purposes, the Company shall have the right to alter and adjust
payment dates under Paragraph 3 of this Agreement to coincide with its then
existing accounting period, provided, however, that under no circumstances
shall the Company have the right to adjust such payment dates hereunder to
dates more than 31 days apart.

	 
	 	(g)	 	“Retire” and “Retirement” mean any
Termination of Employment (including on account of death or Disability) on or
after the Retirement Date.

	 
	 	(h)	 	“Retirement Benefit” means a lump sum amount equal to
the “current value” of a stream of periodic payments payable to Executive in
each Period during the Payment Period, such periodic payments determined as
follows:

	 	(i)	 	multiplying Executive’s Current Annual Salary by five (5),
and

	 
	 	(ii)	 	divide said product so obtained by
the number of full Periods during the Payment Period.

The “current value” of such stream of periodic payments shall be the
present value on the Termination Date of such payments based on the
following assumptions:

	 	(i)	 	Such stream of payments would commence with
the Period following the Period in which the Termination Date occurred
and would continue through the end of the Payment Period;

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	 	(ii)	 	Such present value shall be determined by
using the interest rate equal to the yield on the 10-year United
States Treasury Bond on the Termination Date; and

	 
	 	(iii)	 	Such present value shall be determined
without any discount for mortality.

Notwithstanding the forgoing, in the case of Executive’s Termination of
Employment by reason of his death, the amount of the Retirement Benefit
shall be seventy-five (75%) of the amount determined above.

	 	(i)	 	“Retirement Date” means the earlier of:

	 	(i)	 	the last day of the Company’s
fiscal year during which Executive attains the age of sixty
(60) years (i.e., December 31, 2011);

	 
	 	(ii)	 	the date of Executive’s death
while employed by the Company; or

	 
	 	(iii)	 	the date of Executive’s
Termination of Employment by reason of Executive’s
Disability.

	 	(j)	 	“Severance Multiple” means the lesser of (i) two and
one half (2 1/2) or (ii) the quotient obtained by dividing (A) the number of
full months between Executive’s Termination of Employment and the last day of
the Company’s fiscal year during which Executive will attain the age of sixty
(60) years (i.e., December 31, 2011) by (B) 12.

	 
	 	(k)	 	“Stock
Options” means Executive’s options to purchase shares of the Company’s common stock pursuant to options granted to Executive
by the Company prior to Executive’s Termination of Employment, which options
are otherwise vested in Executive on the date of his Termination of Employment
and remain unexercised upon the expiration of such options in accordance with
their terms upon or subsequent to Executive’s Termination of Employment.

	 
	 	(l)	 	“Termination Date” means the date of Executive’s
Termination of Employment.

	 
	 	(m)	 	“Termination of Employment” means any termination of
employment (as defined in Section 409A of the Code and the

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	 	 	 	Company’s administrative policies, if any) with either the Company or any
successor to the Company that acquires all or substantially all of the
business and/or assets of the Company (whether direct or indirect, by
purchase, merger, consolidation or otherwise); provided, however, no
termination of employment shall be deemed to have occurred by reason of
such an acquisition unless there is either (i) a termination of employment
with both the Company and such successor or (ii) a termination of
employment with the Company and no successive employment by such
successor.

	 
	 	(n)	 	“Value” with reference to Executive’s Stock Options
means the estimated present value of the Stock Options determined on the basis
of a “Black-Scholes” valuation calculation using the price of the shares of
the Company’s common stock and comparable U.S. Treasury Strip Rates with a
term equivalent to the remaining term of the respective Stock Options as
reported in the Wall Street Journal for the date of Executive’s Termination of
Employment, using the dividends paid during the twelve month period
immediately prior to the date of Executive’s Termination of Employment and
using a stock price volatility factor as reflected in the Company’s most
recent proxy statement.

     2. Retirement Benefit.

(a) Retirement Benefit Payment. In the event of Executive’s (i)
Retirement, (ii) Termination of Employment, whether voluntary or involuntary, with
or without Cause, after a Change in Control but prior to Executive’s Retirement
Date, or (iii) involuntary Termination of Employment without Cause prior to the
earlier of a Change in Control or Executive’s Retirement Date, the Company agrees
to pay Executive (or Executive’s beneficiary in the case of his death) a lump sum
payment of the Retirement Benefit within 30 days after the Executive’s Termination
of Employment.

(b) Designation of Beneficiary. Executive may designate a beneficiary to
receive payments payable hereunder after his death by filing with the Company a
beneficiary designation on a form approved by the Company, bearing the name,
address and relationship of the beneficiary, which beneficiary designation form
shall be acknowledged by Executive before a Notary Public or other officer
authorized to administer oaths, and shall be in such other form and shall contain
such other information as shall be satisfactory to the Company. The beneficiary
may be changed by Executive at any time by filing a new beneficiary designation
form with the Company, said new beneficiary designation form to comply with the
provisions of this Paragraph 3(b). If Executive shall not be survived by

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the beneficiary designated in accordance with the provisions herein set forth, then
upon Executive’s death, any and all payments provided for herein shall be made to
Executive’s estate. If Executive shall be survived by the beneficiary designated
as provided herein, and such beneficiary shall die prior to receiving all amounts
payable hereunder to such deceased beneficiary if such beneficiary had lived, then
all remaining amounts that would have been paid to such deceased beneficiary if
living shall be paid to the estate of such deceased beneficiary.

     3. Termination of Employment After a Change in Control and Prior to Retirement.

	 	(a)	 	Benefits Payable. The Company and Executive have
previously entered into the Compensation and Benefits Assurance Agreement. In
no event shall any payments or benefits be made to or provided to Executive
under the terms of this Agreement upon Executive’s Termination of Employment
after a Change in Control and prior to Executive’s Retirement Date except for
the benefits expressly provided for in Paragraph 2 of this Agreement.

	 
	 	(b)	 	Funding of Grantor Trust. Upon the occurrence of a
Change in Control, in order to provide a source of payment of the benefits
payable under Paragraph 2, the Company shall fund an irrevocable “grantor”
trust maintained pursuant to a trust agreement with an institutional trustee
selected by the Company. The amount funded by the Company shall equal the
“current value” of the retirement benefits determined as of the date of the
Change in Control pursuant to the provisions of Paragraph 1(h) above

     4. Involuntary Termination of Employment Prior to a Change in Control or Executive’s
Retirement Date. In the event of Executive’s involuntary Termination of Employment without
Cause prior to the earlier of a Change in Control or Executive’s Retirement Date, the Company
agrees to pay to or provide Executive with the following:

	 	(a)	 	A single cash payment in an amount equal to the Severance
Multiple multiplied by the sum of (i) the highest Base Salary paid to
Executive during his employment by the Company plus (ii) the Executive’s
then-current target bonus opportunity (stated in terms of a percentage of Base
Salary) established under the Company’s Annual Corporate Performance Incentive
Plan for Officers (or any successor plan thereto), if any, in effect on the
Termination Date, which payment shall be made within thirty (30) days after
the Termination Date.

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	 	(b)	 	Payment of the benefits expressly provided for in Paragraph 2
of this Agreement.

	 
	 	(c)	 	A single cash payment in an amount equal to Executive’s
unpaid Base Salary, accrued vacation pay, unreimbursed business expenses, and
all other items earned by and owed to Executive through the Termination Date.

	 
	 	(d)	 	A single cash payment in an amount equal to the greater of
(i) the Executive’s then-current target bonus opportunity (stated in terms of
a percentage of Base Salary) established under the Company’s Annual Corporate
Performance Incentive Plan for Officers (or any successor plan thereto), if
any, for the incentive plan year in which the Termination Date occurs,
adjusted on a pro-rata basis based on the number of days Executive was
actually employed during such incentive plan year or (ii) the actual bonus
earned through the Termination Date under the Company’s Annual Corporate
Performance Incentive Plan for Officers (or any successor plan thereto), if
any, based on the then-current level of goal achievement; which payment shall
be made at the same time as the payments are made to the Company’s other
employees under the Company’s Annual Corporate Performance Incentive Plan for
Officers (or any successor plan thereto), if any, for the incentive plan year
during which the Termination Date occurs.

	 
	 	(e)	 	Conveyance of possession and title to the Company-owned
automobile, if any, used by Executive in connection with his employment
immediately prior to the Termination Date within thirty (30) days after such
Termination Date.

	 
	 	(f)	 	A single cash payment of the Value of the Stock Options,
which payment shall be paid within ten (10) days following the expiration of
such Stock Options.

	 
	 	(g)	 	Medical Insurance coverage for Executive until Executive
reaches the age of sixty (60) (July 24, 2011) or his earlier death under such
terms and conditions as are most closely comparable to the “Plan B” or HMO
coverage option provided Executive under the Company’s Group Medical Benefits
Plan on the Termination Date and as shall be thereafter customarily provided
by the Company to the Company’s executives from time to time during such
period. During this period, Executive shall be entitled to obtain at
Executive’s expense such optional coverages, such as dental coverage and
family/dependent medical coverage, under the Company’s Group Medical Benefits
Plan as are available for the Company’s employees generally. After age sixty
(60) Executive

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	 	 	 	may elect to obtain at Executive’s expense coverage as a “retiree” under
such Group Medical Benefits Plan, if any, as may be then available to the
Company’s retired executives. Commencing with the end of the Executive’s
COBRA period and until the Executive reaches age sixty (60), for each
month that such coverage is in place, Executive will recognize taxable
income equal to the difference between the premium actually paid by the
Executive and the premium that would be paid by a similarly situated COBRA
participant.

	 
	 	(h)	 	Life Insurance, accidental death and dismemberment insurance
and disability insurance for Executive until Executive reaches age sixty (60)
(July 24, 2011) or his earlier death under such terms and conditions that are
reasonably comparable to the coverages provided Executive under the Company’s
plans for such insurance on the Termination Date and as shall be thereafter
customarily provided by the Company to Company’s executives from time to time
during such period.

	 
	 	(i)	 	Indemnification of Executive from any claims asserted against
Executive arising out of the prior performance of Executive’s duties with the
Company or its Affiliates to the same extent as the Company indemnifies
retired officers or directors of the Company.

	 
	 	(j)	 	Payment of Executive’s vested interest under the Company
sponsored qualified profit sharing and 401(k) Plans when and as provided in,
and otherwise subject to, the terms, provisions and conditions of said Plans,
and nothing in this Agreement shall modify or override the terms, provisions
and conditions of such Plans.

	 
	 	(k)	 	At no expense to Executive, standard outplacement services
for Executive from a nationally recognized outplacement firm of Executive’s
selection, for a period of up to two (2) years from the Termination Date.
However, such services shall be at the Company’s expense to a maximum amount
not to exceed twenty percent (20%) of the Executive’s Base Salary as of the
Termination Date. In no event shall reimbursement for eligible outplacement
expenses be made to the Executive later than the end of the third calendar
year following the year of the Termination Date.

     5. Other Termination of Employment. Except as otherwise expressly provided to the
contrary in the Compensation and Benefits Assurance Agreement and in Paragraph 2 of this Agreement,
Executive shall not be entitled to any payments or benefits upon his Termination of Employment in
the following events:

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	 	(a)	 	Executive’s voluntary Termination of Employment prior to his
Retirement Date, or

	 
	 	(b)	 	Executive’s involuntary Termination of Employment for Cause
prior to his Retirement Date, or

	 
	 	(c)	 	Executive’s Termination of Employment, whether voluntary or
involuntary, with or without Cause, prior to his Retirement Date and following
a Change in Control.

     6. Mitigation. In no event shall Executive be obligated to seek other employment or
take any other action by way of mitigation of the amounts payable to Executive under any of the
provisions of this Agreement, nor shall the amount of any payment hereunder be reduced by any
compensation earned by Executive as a result of employment by another employer.

     7. ADEA Waiver. Executive understands that the severance benefits provided in
Paragraph 4 will decline as Executive approaches the age of sixty (60) years and will be eliminated
at the end of the Company’s fiscal year during which Executive attains the age of sixty (60) years.
Moreover, the Compensation and Benefits Assurance Agreement may be terminated by the Company at
the end of the Company’s fiscal year during which Executive attains the age of sixty (60) years.
If such reduction and/or elimination of benefits are construed to violate the Age Discrimination in
Employment Act of 1967, as amended, Executive does hereby release and waive any claim he may have
by reason of such violation. Executive acknowledges that this Agreement and the Compensation and
Benefits Agreement provide new consideration which he was not previously entitled to receive, that
he has consulted an attorney before executing the agreements, and that he has been given up to
twenty-one (21) days within which to consider the agreements. This Agreement will not become
effective or enforceable until seven (7) days following Executive’s execution of this Agreement,
and Executive may revoke this Agreement at any time during such seven-day period by delivering (or
causing to be delivered) to the principal office of the Company a notice of his revocation of this
Agreement. The execution of the Compensation and Benefits Assurance Agreement is in part
consideration for and an integral part of this Agreement, and therefore, any such revocation of
this Agreement will also constitute a revocation and cancellation of the Compensation and Benefits
Assurance Agreement.

     8. Legal Fees and Expenses. The Company shall pay all legal fees, costs of
litigation, prejudgment interest, and other expenses (“Legal Expenses”) which are incurred in good
faith by Executive as a result of the Company’s refusal to provide the benefits to which Executive
becomes entitled under this Agreement, or as a result of the Company’s (or any third party’s)
contesting the validity, enforceability, or interpretation of this Agreement, or as a result of any
conflict between the parties pertaining to this Agreement; provided, however, in no event shall the
Company be required to pay any such expenses if it is finally determined that Executive’s
Termination of Employment

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was for Cause. In no event will any payments to Executive under this Section 8 be paid later than
the end of the calendar year following the year in which the expense was incurred.

     9. Applicable Law. This Agreement is made and executed with the intention that the
construction, interpretation and validity hereof shall be determined in accordance with and
governed by the laws of the State of North Carolina.

     10. Binding Effect. This Agreement shall be binding upon and inure to the benefit of
the Company, its successors and assigns. This Agreement shall be binding upon and inure to the
benefit of Executive, his heirs, executors and administrators.

     11. Entire Agreement. This Agreement constitutes the entire agreement between the
parties with respect to the subject matter hereof and supersedes and cancels all prior or
contemporaneous oral or written agreements and understandings between them with respect to the
subject matter hereof.

     12. Compliance with Section 409A of the Internal Revenue Code. This Agreement is
intended to comply with Section 409A of the Internal Revenue Code, to the extent applicable.
Notwithstanding any provisions herein to the contrary, this Agreement shall be interpreted,
operated, and administered consistent with this intent. In that regard, any payments required by
this Agreement in connection with the Executive’s termination of employment shall not be made
earlier than six (6) months after the date of termination to the extent required by Code Section
409A(a)(2)(B)(i).

     IN WITNESS WHEREOF, the Company has caused this Amended and Restated Executive Severance
Agreement to be signed by its duly authorized officers and its corporate seal to be hereunto
affixed, and Executive has hereunto set his hand and seal, all as of the day and year first above
written.

	 	 	 	 	 	 	 	 	 
	[CORPORATE SEAL]	 	 	 	Lance, Inc.	 	 
	 
	 	 	 	 	 	 	 	 
	ATTEST:

	 	 	 	By
	 	s/ David V. Singer	 	 
	 

	 	 	 	 	 	 	 	 
	
s/ R. D. Puckett

	 	 	 	 	 	David V. Singer

President	 	 
	
Secretary
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	s/ Earl D. Leake	 SEAL] 	 
	 	 	 	 	 	 	 
	 	 	 	 	Earl D. Leake	 	 

10Ex-10.1 Indemnification Agreement with John J. Mah

Exhibit 10.1

INDEMNIFICATION AGREEMENT

     THIS INDEMNIFICATION AGREEMENT (this “Agreement”) is made and entered into this 21st day of
July, 2008, by and between John J. Mahoney (the “Indemnified Party”) and CHICO’S FAS, INC., a
Florida corporation (the “Corporation”).

WITNESSETH

     WHEREAS, it is essential to the Corporation to retain and attract as Directors and/or
Executive Officers the most capable persons available; and

     WHEREAS, the substantial increase in corporate litigation subjects directors and officers to
expensive litigation risks at the same time that the availability of directors’ and officers’
liability insurance has been severely limited; and

     WHEREAS, in addition, the statutory indemnification provisions of the Florida Business
Corporation Act and Article VII of the bylaws of the Corporation (the “Article”) expressly provide
that they are non-exclusive; and

     WHEREAS, the Indemnified Party does not regard the protection available under the Article and
insurance, if any, as adequate in the present circumstances, and considers it necessary and
desirable to his service as a Director and/or Executive Officer to have adequate protection, and
the Corporation desires the Indemnified Party to serve in such capacity and have such protection;
and

     WHEREAS, the Florida Business Corporation Act and the Article provide that indemnification of
Directors and Executive Officers of the Corporation may be authorized by agreement, and thereby
contemplates that contracts of this nature may be entered into between the Corporation and the
Indemnified Party with respect to indemnification of the Indemnified Party as a Director and/or
Executive Officer of the Corporation.

     NOW THEREFORE, in consideration of the premises and the mutual covenants and agreements
contained in this Agreement, it is hereby agreed as follows:

     1. INDEMNIFICATION GENERALLY.

          (a) Grant of Indemnity. (i) Subject to and upon the terms and conditions of this
Agreement, the Corporation shall indemnify and hold harmless the Indemnified party in respect of
any and all costs, claims, losses, damages and expenses which may be incurred or suffered by the
Indemnified Party as a result of or arising out of prosecuting, defending, settling or
investigating:

          (1) any threatened, pending, or completed claim, demand, inquiry, investigation,
action , suit or proceeding, whether formal or informal or brought by or in the right
of the Corporation or otherwise and whether of a civil, criminal, administrative or
investigative nature, in which the Indemnified Party may be or may have been involved
as a party or otherwise, arising out of the fact that the Indemnified Party is or was
a director, officer, employee, independent contractor or stockholder of the
Corporation or any of its “Affiliates” (as such term is defined in the rules and
regulations promulgated by the Securities and Exchange Commission under the
Securities Act of 1933), or served as a director, officer, employee,

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independent contractor or stockholder in or for any person, firm, partnership,
corporation or other entity at the request of the Corporation (including without
limitation service in any capacity for or in connection with any employee benefit
plan maintained by the Corporation or on behalf of the Corporation’s employees);

          (2) any attempt (regardless of its success) by any person to charge or cause the
Indemnified Party to be charged with wrongdoing or with financial responsibility for
damages arising out of or incurred in connection with the matters indemnified against
in this Agreement; or

          (3) any expense, interest, assessment, fine, tax, judgment or settlement payment
arising out of or incident to any of the matters indemnified against in this
Agreement including reasonable fees and disbursements of legal counsel, experts,
accountants, consultants and investigators (before and at trial and in appellate
proceedings).

          (ii) The obligation of the Corporation under this Agreement is not conditioned in any way on
any attempt by the Indemnified Party to collect from an insurer any amount under a liability
insurance policy.

          (iii) In no case shall any indemnification be provided under this Agreement to the Indemnified
Party by the Corporation in:

          (1) Any action or proceeding brought by or in the name or interest of the
Indemnified Party against the Corporation; or

          (2) Any action or proceeding brought by the Corporation against the Indemnified
Party, which action is initiated at the direction of the Board of Directors of the
Corporation.

     (b) Claims for Indemnification. (i) Whenever any claims shall arise for
indemnification under this Agreement, the Indemnified Party shall notify the Corporation promptly
and in any event within 30 days after the Indemnified Party has actual knowledge of the facts
constituting the basis for such claim. The notice shall specify all facts known to the Indemnified
Party giving rise to such indemnification right and the amount or an estimate of the amount of
liability (including estimated expenses) arising therefrom.

          (ii) Any indemnification under this Agreement shall be made no later than 30 days after
receipt by the Corporation of the written notification specified in Section 1(b)(i), unless a
determination is made within such 30 day period by (X) the Board of Directors by a majority vote of
a quorum consisting of directors who were not parties to the mater described in the notice of (Y)
independent legal counsel, agreed to by the Corporation, in a written opinion (which counsel shall
be appointed if such a quorum is not obtainable), that the Indemnified Party has not met the
relevant standards for indemnification under this Agreement.

     (c) Rights to Defend or Settle; Third Party Claims, etc. (i) If the facts giving
rise to any indemnification right under this Agreement shall involve any actual or threatened claim
or demand against the Indemnified Party, or any possible claim by the Indemnified Party against any
third party, such claim shall be referred to as a “Third Party Claim.” If the Corporation

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provides the Indemnified Party with an agreement in writing in form and substance satisfactory
to the Indemnified Party and his counsel, agreeing to indemnify, defend or prosecute and hold the
Indemnified Party harmless from all costs and liability arising from any Third Party Claim (an
“Agreement of Indemnity”), and demonstrating to the satisfaction of the Indemnified Party the
financial wherewithal to accomplish such indemnification, the Corporation may at its own expense
undertake full responsibility for the defense or prosecution of such Third Party Claim. The
Corporation may contest or settle any such Third Party Claim for money damages on such terms and
conditions as it deems appropriate but shall be obligated to consult in good faith with the
Indemnified Party and not to contest or settle any Third Party Claim involving injunctive or
equitable relief against or affecting the Indemnified Party of his properties or assets without the
prior written consent of the Indemnified Party, such consent not to be withheld unreasonably. The
Indemnified Party may participate at his own expense and with his own counsel in defense or
prosecution of a Third Party Claim pursuant to this Section 1(c)(i), and such participation shall
not relieve the Corporation of its obligation to indemnify the Indemnified Party under this
Agreement.

          (ii) If the Corporation fails to deliver a satisfactory Agreement of Indemnity and evidence of
financial wherewithal within 10 days after receipt of notice pursuant to Section 1(b), the
Indemnified Party may contest or settle the Third Party Claim on such terms as it sees fit but
shall not reach a settlement with respect to the payment of money damages without consulting in
good faith with the Corporation. The Corporation may participate at its own expense and with its
own counsel in defense or prosecution of a Third Party Claim pursuant to this Section 1(c)(ii), but
any such participation shall not relieve the Corporation of its obligations to indemnify the
Indemnified Party under this Agreement. All expenses (including attorneys’ fees) incurred in
defending or prosecuting any Third Party Claim shall be paid promptly by the Corporation as the
suit or other matter is proceeding, upon the submission of bills therefore or other satisfactory
evidence of such expenditures during the pendency of any matter as to which indemnification is
available under this Agreement. The failure to make such payments within 10 days after submission
of evidence of those expenses shall constitute a breach of a material obligation of the Corporation
under this Agreement.

          (iii) If by reason of any Third Party Claim a lien, attachment, garnishment or execution is
placed upon any of the property or assets of the Indemnified Party, the Corporation shall promptly
furnish a satisfactory indemnity bond to obtain the prompt release of such lien, attachment,
garnishment or execution.

          (iv) The Indemnified Party shall cooperate in the defense of any Third Party Claim which is
controlled by the Corporation, but the Indemnified Party shall continue to be entitled to
indemnification and reimbursement for all costs and expenses incurred by him in connection
therewith as provided in this Agreement.

     (d) Cooperation. The parties to this Agreement shall execute such powers of attorney
as may be necessary or appropriate to permit participation of counsel selected by any party hereto
and, as may be reasonably related to any such claim or action, shall provide to the counsel,
accountants and other representatives of each party access during normal business hours to all
properties, personnel, books, records, contracts, commitments and all other business records of
such other party and will furnish to such other party copies of all such documents as may be
reasonably requested (certified, if requested).

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     (e) Choice of Counsel. In all matters as to which indemnification is available to the
Indemnified Party under this Agreement, the Indemnified Party shall be free to choose and retain
counsel, provided the Indemnified Party shall secure the prior written consent of the Corporation
as to such selection, which consent shall not be unreasonably withheld.

     (f) Consultation. If the Indemnified Party desires to retain the services of an
attorney prior to the determination by the Corporation as to whether it will undertake the defense
or prosecution of the Third Party Claim as provided in Section 1(c), the Indemnified Party shall
notify the Corporation of such desire in the notice delivered pursuant to Section 1(b)(i), and such
notice shall identify the counsel to be retained. The Corporation shall then have 10 days within
which to advise the Indemnified Party whether it will assume the defense or prosecution of the
Third Party Claim in accordance with Section 1(c)(i). If the Indemnified Party does not receive an
affirmative response within such 10-day period, he shall be free to retain counsel of his choice,
and the indemnity provided in Section 1(a) shall apply to the reasonable fees and disbursements of
such counsel incurred after the expiration of such 10-day period. Any fees or disbursements
incurred prior to the expiration of such 10-day period shall not be covered by the indemnity of
Section 1(a).

     (g) Repayment. (i) Notwithstanding the other provisions of this Agreement to the
contrary, if the Corporation has incurred any cost, damage or expense under this Agreement paid to
or for the benefit of the Indemnified Party and it is determined by a court of competent
jurisdiction from which no appeal may be taken that the Indemnified Party’s actions or omissions
constitute “Nonindemnifiable Conduct” as that term is defined in Section 1(g)(ii), the Indemnified
Party shall and does hereby undertake in such circumstances to reimburse the Corporation for any
and all such amounts previously paid to or for the benefit of the Indemnified Party.

          (ii) For these purposes, “Nonindemnifiable Conduct” shall mean actions or omissions of the
Indemnified Party material to the cause of action to which the indemnification under this Agreement
related is determined to involve:

          (1) a violation of the criminal law, unless the Indemnified Party had reasonable
cause to believe his conduct was lawful and had no reasonable cause to believe his
conduct was unlawful;

          (2) a transaction in which the Indemnified Party derived an improper personal
benefit;

          (3) if the Indemnified Party is a director of the Corporation, a circumstance
under which the liability provisions of Section 607.0834 (or any successor or similar
statute) are applicable;

          (4) willful misconduct or a conscious disregard for the best interests of the
Corporation (when indemnification is sought in a proceeding by or in the right of the
Corporation to procure a judgment in favor of the Corporation or when indemnification
is sought in a proceeding by or in the right of a stockholder); or

          (5) conduct pursuant to then applicable law that prohibits such indemnification.

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     2. TERM.

          This Agreement shall be effective upon its execution by all parties and shall continue in full
force and effect until the date seven years after the date of this Agreement, or seven years after
the termination of the Indemnified Party’s employment or term of office, whichever is later,
provided that such term shall be extended by any period of time during which the Corporation is in
breach of a material obligation to the Indemnified Party, plus ninety days. Such term shall also
be extended with respect to each Third Party Claim then pending and as to which notice under
Section 1(b) has theretofore been given by the Indemnified Party to the Corporation, and this
Agreement shall continue to be applicable to each such Third Party Claim.

     3. REPRESENTATIONS AND AGREEMENTS OF THE CORPORATION.

          (a) Authority. The Corporation represents, covenants and agrees that it has the
corporate power and authority to enter into this Agreement and to carry out its obligations under
this Agreement. The execution, delivery and performance of this Agreement and the consummation of
the transactions contemplated by this Agreement have been duly authorized by the Board of Directors
of the Corporation. This Agreement is a valid and binding obligation of the Corporation and is
enforceable against the Corporation in accordance with its terms.

          (b) Noncontestability. The Corporation represents, covenants and agrees that it will
not initiate, and that it will use its best efforts to cause any of its Affiliates not to initiate,
any action, suit or proceeding challenging the validity or enforceability of this Agreement.

          (c) Good Faith Judgment. The Corporation represents, covenants and agrees that it will
exercise good faith judgment in determining the entitlement of the Indemnified Party to
indemnification under this Agreement.

     4. RELATIONSHIP OF THIS AGREEMENT TO OTHER INDEMNITIES.

          (a) Nonexclusivity. (i) This Agreement and all rights granted to the Indemnified
Party under this Agreement are in addition to and are not deemed to be exclusive with or of any
other rights that may be available to the Indemnified Party under any Articles of Incorporation,
bylaw, statute, agreement, or otherwise.

               (ii) The rights, duties and obligations of the Corporation and the Indemnified Party under
this Agreement do no limit, diminish or supersede the rights, duties and obligations of the
Corporation and the Indemnified Party with respect to the indemnification afforded to the
Indemnified Party under any liability insurance, the Florida Business Corporation Act, or under the
bylaws or the Articles of Incorporation of the Corporation. In addition, the Indemnified Party’s
rights under this Agreement will not be limited or diminished in any respect by any amendment to
the bylaws or the Articles of Incorporation of the Corporation.

          (b) Availability, Contribution, etc. (i) The availability or nonavailability of
indemnification by way of insurance policy, Articles of Incorporation, bylaw, vote of stockholders,
or otherwise from the Corporation to the Indemnified Party shall not affect the right of the
Indemnified Party to indemnification under this Agreement, provided that all rights under this
Agreement shall be subject to applicable statutory provisions in effect from time to time.

5

 

               (ii) Any funds received by the Indemnified Party by way of indemnification or payment from any
source other than from the Corporation under this Agreement shall reduce any amount otherwise
payable to the Indemnified Party under this Agreement.

               (iii) If the Indemnified Party is entitled under any provision of this Agreement to
indemnification by the Corporation for some claims, issues or matters, but not as to other claims,
issues or matters, or for some or a portion of the expenses, judgments, fines or penalties actually
and reasonably incurred by him or amounts actually and reasonably paid in settlement by him in the
investigation, defense, appeal or settlement of any matter for which indemnification is sought
under this Agreement, but not for the total amount thereof, the Corporation shall nevertheless
indemnify the Indemnified Party for the portion of such claims, issues or matters or expenses,
judgments, fines, penalties or amounts paid in settlement to which the Indemnified Party is
entitled.

               (iv) If for any reason a court of competent jurisdiction from which no appeal can be taken
rules than the indemnity provided under this Agreement is unavailable, or if for any reason the
indemnity under this Agreement is insufficient to hold the Indemnified Party harmless as provided
in this Agreement, then in either event, the Corporation shall contribute to the amounts paid or
payable by the Indemnified Party in such proportion as equitably reflects the relative benefits
received by, and fault of the Indemnified Party and the Corporation and its Affiliates.

          (c) Allowance for Compliance with SEC Requirements. The Indemnified Party acknowledges
that the Securities and Exchange Commission (“SEC”) has expressed the opinion that indemnification
of directors and officers from liabilities under the Securities Act of 1933 (the “1933 Act”) is
against public policy as expressed in the 1933 Act and, is therefore, unenforceable. The
Indemnified Party hereby agrees that it will not be a breach of this Agreement for the Corporation
to undertake with the SEC in connection with the registration for sale of any stock or other
securities of the Corporation from time to time that, in the event a claim for indemnification
against such liabilities (other than the payment by the Corporation of expenses incurred or paid by
a director of officer of the Corporation in the successful defense of any action, suit or
proceeding) is asserted in connection with such stock or other securities being registered, the
Corporation will, unless in the opinion of its counsel the matter has been settled by controlling
precedent, submit to a court of competent jurisdiction on the question of whether or not such
indemnification by it is against public policy as expressed in the 1933 Act and will be governed by
the final adjudication of such issue. The Indemnified Party further agrees that such submission to
a court of competent jurisdiction shall not be a breach of this Agreement.

     5. MISCELLANEOUS.

          (a) Notices. All notices, requests, demands and other communications which are
required or may be given under this Agreement shall be in writing and shall be deemed to have been
duly given when received if personally delivered; when transmitted if transmitted by telecopy,
electronic telephone line facsimile transmission or other similar electronic or digital
transmission method; the day after it is sent, if sent by recognized expedited delivery service;
and five days after it is sent, if mailed, first class mail, postage prepaid. In each case notice
shall be sent to:

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          If to the Indemnified Party:

John J. Mahoney

Staples

500 Staples Drive

Framingham, MA 01702

          If to the Corporation:

Chico’s FAS, Inc.

11215 Metro Parkway

Fort Myers, FL 33966

or to such other address as either party may have specified in writing to the other using the
procedures specified above in this Section 5(a).

          (b) Construction and Interpretation. (i) This Agreement shall be construed pursuant
to and governed by the substantive laws of the State of Florida (and any provision of Florida law
shall not apply if the law of a state or jurisdiction other than Florida would otherwise apply).

               (ii) The headings of the various sections in this Agreement are inserted for the convenience
of the parties and shall not affect the meaning, construction or interpretation of this Agreement.

               (iii) Any provision of this Agreement which is determined by a court of competent jurisdiction
to be prohibited, unenforceable or not authorized in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such prohibition, unenforceability or
non-authorization without invalidating the remaining provisions hereof or affecting the validity,
enforceability or legality of such provision in any other jurisdiction. In any such case, such
determination shall not affect any other provision of this Agreement, and the remaining provisions
of this Agreement shall remain in full force and effect. If any provision or term of this
Agreement is susceptible to two or more constructions or interpretations, one or more of which
would render the provision or term void or unenforceable, the parties agree that a construction or
interpretation which renders the term or provision valid shall be favorable.

               (iv) As used in this Agreement, (1) the word “including” is always without limitation; (2) the
words in the singular number include words of the plural number and vice versa; and (3) the word
“person” includes a trust, corporation, association, partnership, joint venture, business trust,
unincorporated organization, limited liability company, government, public body or authority and
any governmental agency or department as well as a natural person.

          (c) Entire Agreement. This Agreement constitutes the entire Agreement, and supersedes
all prior agreements and understandings, oral and written, among the parties to this Agreement with
respect to the subject matter hereof.

          (d) Specific Enforcement. (i) The parties agree and acknowledge that in the event
of a breach by the Corporation of its obligation promptly to indemnify the Indemnified Party as
provided in this Agreement, or breach of any other material provision of this Agreement, damages at
law will be an insufficient remedy to the Indemnified Party. Accordingly, the parties agree that,
in addition to any other remedies or rights that may be available to the Indemnified
Party, the Indemnified Party shall also be entitled, upon application to a court of competent
jurisdiction, to obtain temporary or permanent injunctions to compel specific performance of the
obligations of the Corporation under this Agreement.

7

 

               (ii) There shall exist in such action a rebuttable presumption that the Indemnified Party has
met the applicable standard(s) of conduct and is therefore entitled to indemnification pursuant to
this Agreement, and the burden of proving that the relevant standards have not been met by the
Indemnified Party shall be on the Corporation. Neither the failure of the corporation (including
its Board of Directors or independent legal counsel) prior to the commencement of such action to
have made a determination that indemnification is proper in the circumstances because the
Indemnified Party has met the applicable standard of conduct, nor an actual determination by the
Corporation (including its Board of Directors or independent legal counsel) that the Indemnified
Party has not met such applicable standard of conduct, shall (X) constitute a defense to the
action, (Y) create a presumption that the Indemnified Party has not met the applicable standard of
conduct, or (Z) otherwise alter the presumption in favor of the Indemnified Party referred to in
the preceding sentence.

          (e) Cost of Enforcement; Interest. (i) If the Indemnified party engages the
services of an attorney or any other third party or in any way initiates legal action to enforce
his rights under this Agreement, including but not limited to the collection of monies due from the
Corporation to the Indemnified Party, the prevailing party shall be entitled to recover all
reasonable costs and expenses (including reasonable attorneys’ fees before and at trial and in
appellate proceedings). Should the Indemnified Party prevail, such costs and expenses shall be in
addition to monies otherwise due him under this Agreement.

               (ii) If any monies shall be due the Indemnified Party from the Corporation under this
Agreement and shall not be paid within 30 days from the date of written request for payment,
interest shall accrue on such unpaid amount at the rate of 2% per annum in excess of the prime rate
announced from time to time by Bank of America, or such lower rate as may be required to comply
with applicable law from the date when due until it is paid in full.

          (f) Application to Third Parties, Etc. Nothing in this Agreement, whether express or
implied, is intended or should be construed to confer upon, or to grant to, any person, except the
Corporation, the Indemnified Party and their respective heirs, assignees and successors, any claim,
right or remedy under or because of this Agreement or in any provision of it. This Agreement shall
be binding upon and inure to the benefit of the successors in interest and assigns, heirs and
personal representatives, as the case may be, of the parties, including any successor corporation
resulting from a merger, consolidation, recapitalization, reorganization, sale of all or
substantially all of the assets of the Corporation, or any other transaction resulting in the
successor corporation assuming the liabilities of the Corporation under this Agreement (by
operation of law, or otherwise).

          (g) Further Assurances. The parties to this Agreement will execute and deliver, or
cause to be executed and delivered, such additional or further documents, agreements or instruments
and shall cooperate with one another in all respects for the purpose of carrying out the
transactions contemplated by this Agreement.

8

 

          (h) Venue; Process. The parties to this Agreement agree that jurisdiction and venue
in any action brought pursuant to this Agreement to enforce its terms or otherwise with
respect to the relationships between the parties shall properly lie in the Circuit Court of the
Twentieth Judicial Circuit of the State of Florida in and for Lee County or in the United States
District Court for the Middle District of Florida, Tampa Division. Such jurisdiction and venue are
merely permissive; jurisdiction and venue shall also continue to lie in any court where
jurisdiction and venue would otherwise be proper. The parties agree that they will not object
that any action commenced in the foregoing jurisdictions is commenced in a forum non conveniens.
The parties further agree that the mailing by certified or registered mail, return receipt
requested, of any process required by any such court shall constitute valid and lawful service of
process against them, without the necessity for service by any other means provided by statute or
rule of court.

          (i) Counterparts. This Agreement may be executed in any number of counterparts, each
of which shall be considered an original, but all of which together shall constitute one and the
same instrument.

          (j) Waiver and Delay. No waiver or delay in enforcing the terms of this Agreement
shall be construed as a waiver of any subsequent breach. No action taken by the Indemnified Party
shall constitute a waiver of his rights under this Agreement.

     IN WITNESS WHEREOF, the parties have executed this Agreement on the date first above written.

	 	 	 	 	 
	 	CHICO’S FAS, INC.

 	 
	 	By:  	/s/ Scott A. Edmonds
 	 
	 	 	Scott A. Edmonds 	 
	 	 	Chief Executive Officer and President 	 
	 

	 	 	 
	WITNESSES:
	 	 
	 
	 	 
	/s/ Sandy Rhodes
	 	 
	 

	 	 
	 
	 	 
	/s/ Patricia Hausle
	 	 
	 

	 	 

9

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