Document:

Non-Disclosure, Non-Solicitation & Non-Competition Agreement dated 11/16/2009

 Exhibit 10.13 

 

 

 NON-DISCLOSURE, NON-SOLICITATION AND NON-COMPETITION 

In consideration of your promotion to EVP – Direct and continued employment with or provision of services to J. Crew Group, Inc. and
its affiliates (collectively, the “Company”) and for other good and valuable consideration described below, receipt of which is hereby acknowledged, you agree as follows: 

1. Agreement Not to Disclose Confidential Information. In the course of your employment with or provision of services to
the Company, you have and will have acquired and have had access to confidential or proprietary information about the Company, including but not limited to, trade secrets, methods, models, passwords, access to computer files, financial information
and records, computer software programs, agreements and/or contracts between the Company and its vendors and suppliers, the Company’s merchandising, marketing and/or creative policies, practices, concepts, strategies, and methods of operations,
inventory, pricing and price change strategies, possible new product lines, future merchandise designs, patterns, fabrication or fit information, internal policies, pricing policies and procedures, cost estimates, employee lists, training manuals,
financial or business projections, unannounced financial data such as sales, earnings or capital requirements, possible mergers, acquisitions or joint ventures and information about or received from vendors and other companies with which the Company
does business. The foregoing shall be collectively referred to as “Confidential Information.” You are aware that the Confidential Information is not readily available to the public. You agree that during your employment or provision of
services and for a period of three (3) years thereafter, you will keep confidential and not disclose the Confidential Information to anyone or use it for your own benefit or for the benefit of others, except in performing your duties as our
employee or agent. You agree that this restriction shall apply whether or not any such information is marked “confidential.” 
 All memoranda, disks, files, notes, records or other documents, whether in electronic form or hard copy (collectively, the “material”) compiled by you or made available to you during your
employment (whether or not the material contains confidential information) are the property of the Company and shall be delivered to the Company on the termination of your employment or at any other time upon request. Except in connection with your
employment, you agree that you will not make or retain copies or excerpts of the material. 
 2. Agreement Not to Engage in
Unfair Competition. You agree that your position with the Company requires and will continue to require the performance of services which are special, unique, extraordinary and of an intellectual and/or artistic character and places you in a
position of confidence and trust with the Company. You further acknowledge that the rendering of services to the Company necessarily requires the disclosure of confidential information and trade secrets of the Company. You agree that in the course
of your employment with or rendering of services to the Company, you will develop a personal acquaintanceship and relationship with the vendors and other business associates of the Company and knowledge of their affairs and requirements.
Consequently, you agree that it is reasonable and necessary for the protection of 

  
 770 Broadway
New York NY 10003 Tel 212 209 2500 Fax 212 209 2666 

 
the goodwill and business of the Company that you make the covenants contained herein. Accordingly, you agree that while you are in the Company’s employ and for the period of twelve months
after the termination of your employment, for any reason whatsoever, you shall not directly or indirectly, except on behalf of the Company: 
 (a) render services to or accept employment, either directly as an employee or owner, or indirectly, as a paid or unpaid consultant or independent contractor of any entity identified on Schedule A
hereto (as may be updated by the Company from time to time); or 
 (b) employ as an employee or retain as a
consultant any person who is then or at any time during the preceding twelve months was an employee of or consultant to the Company, or persuade or attempt to persuade any employee of or consultant to the Company to leave the employ of the Company
or to become employed as an employee or retained as a consultant by anyone other than the Company. 
 3. Annual Bonuses and
Signing Bonus. As additional consideration for you entering into this Agreement and agreeing to the covenants contained herein, the Company will provide you with the following: 

(a) You will continue to have the opportunity to earn an annual bonus(es) under the Company’s bonus plan. Starting
with FY 2010, provided that both the Company achieves certain performance objectives (which will be determined by the Company in each fiscal year in accordance with the Company’s bonus plan) and you achieve your performance goals, you will be
eligible to receive an annual bonus with a target of 50% of your base salary, up to a maximum bonus of 100% of your base salary. Such annual bonus(es) will be paid only if you are actively employed by the Company and not in breach of this Agreement
on the date(s) of actual payment(s). 
 (b) A one-time bonus payment of $50,000 (less all authorized or required
payroll withholdings and payroll deductions) (“Bonus Payment”) payable within thirty days after you execute and return this Agreement; provided that you will be required to immediately pay back a pro-rata portion of such Bonus
Payment in the event you voluntarily terminate your employment with the Company or your employment is terminated by the Company for Cause, as defined below, within one year after the date of this Agreement. The pro-ration shall be determined based
on the number of full months having elapsed from the date of this Agreement to your last date of employment, divided by twelve. 
 (c) Subject to the approval of the Compensation Committee of the Board of Directors, a restricted stock grant of 10,000 shares of the Company’s common stock (the “Restricted Stock
Grant”). The Restricted Stock Grant shall vest 50% on the third anniversary of the grant date and 50% on the fourth anniversary of the grant date. The Restricted Stock Grant shall be subject to and governed by the terms and conditions of
the Company’s 2008 Amended and Restated Equity Incentive Plan and shall be evidenced by a separate restricted stock agreement. 

  
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 4. Termination Without Cause. Should your employment be
(a) terminated by the Company without “Cause,” as defined below; and (b) the Company does not consent to waive any of the post-employment restrictions contained in paragraph 2(a) above, and (c) you execute and deliver to
Company an irrevocable Separation Agreement and Release, within 60 days after your termination of employment (and any payment that constitutes non-qualified deferred compensation under Section 409 A of the Internal Revenue Code of 1986, as
amended and any regulations thereunder (the “Code”) that otherwise would be made within such 60-day period pursuant to this paragraph shall be paid at the expiration of such 60-day period), in a form acceptable to the Company, the Company
will pay you a severance payment equal to (i) a lump sum amount equal to the product of (x) the annual bonus, if any, that you would have earned based on the actual achievement of the applicable performance objectives in the fiscal year
which includes the date of your termination of employment had your employment not been terminated and (y) a fraction, the numerator of which is the number of days in the fiscal year that includes the date of your termination through the date of
such termination and the denominator of which is 365, payable when bonuses are generally paid to employees of the Company, but in no event later than the 15th day of the third month following the end of the year with respect to which such bonus was earned; (ii) twelve
(12) months of your then-current base salary, to be paid, less all applicable deductions, according to the Company’s normal payroll practices for a period coextensive with the restricted period (twelve months); and (iii) during the
restricted period, reimbursement for out-of-pocket COBRA payments paid by you to continue your group health benefits, provided you submit relevant supporting documentation to the Company evidencing such payments. Notwithstanding anything herein to
the contrary, however, your right to receive the foregoing payments (collectively, the “Salary Continuation Payments”) shall terminate effective immediately upon the date that you become employed by another entity as an employee,
consultant or otherwise, and you agree to notify the Executive Vice-President of Human Resources in writing prior to the effective date of any such employment. If you fail to so notify the Executive Vice-President of Human Resources, (a) you
will forfeit your right to receive the Salary Continuation Payments described above (to the extent the Salary Continuation Payments were not theretofore paid) and (b) the Company shall be entitled to recover any Salary Continuation Payments
already made to you or on your behalf. 
 Notwithstanding the foregoing paragraph, in the event your employment is terminated by
the Company without Cause, and you are a “specified employee” within the meaning of Section 409A of Code (as determined in accordance with the methodology established by the Company as in effect on the date of your termination), and
the Salary Continuation Payments described above to be paid within the first six months following such date (the “Initial Payment Period”) exceed the amount referenced in Treas. Regs. Section 1.409A-l(b)(9)(iii)(A) (the
“Limit”), then: (i) any portion of the Salary Continuation Payments that are payable during the Initial Payment Period that does not exceed the Limit shall be paid at the times set forth above; (ii) any portion of the
Salary Continuation Payments that are a “short-term deferral” within the meaning of Treas. Regs. Section 1.409A-l(b)(4)(i) shall be paid at the times set forth above; (iii) any portion of the Salary Continuation Payments that
exceeds the Limit and are not a “short-term deferral” (and would have been payable during the Initial Payment Period but for the Limit) shall be paid on the first business day after the six-month anniversary of the Termination Date or, if
earlier, on the date of your death; and (iv) any portion of the Salary Continuation Payments that are payable after the Initial Payment Period shall be paid at the times set forth above. It is intended that each

  
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installment, if any, of the payments and benefits, if any, provided to you under this Section 3 shall be treated as a separate “payment” for purposes of Section 409A of the
Code. 
 For purposes of this agreement, “Cause” means (i) you have acted in bad faith and to the detriment of
the Company; (ii) you have refused or failed to act in accordance with any specific lawful direction or order of supervisory personnel; (iii) you have exhibited in regard to your employment unfitness or unavailability for service,
misconduct, dishonesty, habitual neglect, incompetence, or have committed an act of embezzlement, fraud or theft with respect to the property of the Company; (iv) you have abused alcohol or drugs on the job or in a manner which affects your
job; (v) you have been found guilty of or have plead nolo contendere to the commission of a crime involving dishonesty, breach of trust, or physical or emotional harm to any person; (vi) you have breached any material term of this
Agreement or of any Company policy; and/or (vii) your death or disability (such that you cannot perform the essential functions of the job, with or without accommodation). No payment will be required if the Company elects in its sole discretion
to waive the post-termination restrictions on your employment contained in paragraph 2(a) herein or if the conditions set forth in this paragraph are otherwise not met. 
 5. Termination With Cause or Resignation of Employment. If the Company terminates your employment and such termination is for “Cause,” as defined above, or if you resign your
employment for any reason, then the Company shall pay you all wages due through the termination date. In the event of termination for Cause or your resignation, the Company will not pay any severance, and the restrictions contained in paragraph 2(a)
above will remain in full force and effect unless waived by the Company. 
 6. Term. The term of this agreement shall be
three (3) years, beginning on the date signed by you, as set forth below, and terminating on the third anniversary of such date. At the Company’s request upon or in advance of the termination of this agreement, you will enter into
discussions to extend the terms of this agreement or negotiate in good faith an agreement of similar effect. 
 Notwithstanding
the foregoing, in the event that your employment terminates prior to the third anniversary, you shall remain subject to the post-termination restrictions contained in Sections 1 and 2 hereof and shall be entitled to the severance payment contained
in Section 4 hereof provided that the terms and conditions applicable thereto have been satisfied. 
 7. Injunctive
Relief. You agree that any actual or threatened breach by you of the covenants set forth in paragraphs 1 and 2 of this agreement would result in irreparable harm to the Company for which monetary damages alone would be an insufficient remedy.
Thus, although nothing in this paragraph will prohibit the Company from pursuing any remedies available to it against you under applicable law (which shall be cumulative with those remedies set forth herein), you specifically agree that, in the
event of any threatened or actual breach of this agreement by you, the Company shall be entitled to a temporary restraining order and, thereafter, a preliminary and permanent injunction and other equitable relief including, without limitation, an
equitable accounting of earnings, profits, and other benefits, from a court of competent jurisdiction, as well as reimbursement from you for any attorneys’ fees and other costs incurred by the Company in obtaining such relief. No specification
in this agreement of any legal or equitable remedy shall be construed as a waiver or prohibition against pursuing any 

  
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other legal or equitable remedies in the event of a threatened or actual breach of this agreement by you. 
 8. Severability. If any provision of this agreement, or any part thereof, is found to be invalid or unenforceable, the same shall not affect the remaining provisions, which shall be given full
effect, without regard to the invalid portions. Moreover, if any one or more of the provisions contained in this agreement shall be held to be excessively broad as to duration, scope, activity or subject, such provisions shall be construed by
limiting and reducing them so as to be enforceable to the maximum extent with applicable law. 
 9. At-Will Employment.
This agreement is limited to the foregoing terms and shall not be construed to create any relationship between you and the Company other than at-will employment for all purposes. This agreement supersedes all agreements concerning the subject
matter hereof. 
 10. Governing Law. The terms of this agreement and all rights and obligations of the parties thereto
including its enforcement shall be interpreted and governed by the laws of the state of New York. 
 11. Section 409A of
the Code. If any provision of this agreement (or any award of compensation or benefits provided under this agreement) would cause you to incur any additional tax or interest under Section 409 A of the Code, the Company and you shall
reasonably cooperate to reform such provision to comply with 409A and the Company agrees to maintain, to the maximum extent practicable without violating 409A of the Code, the original intent and economic benefit to you of the applicable provision;
provided that nothing herein shall require the Company to provide you with any gross-up for any tax, interest or penalty incurred by you under Section 409A of the Code. 

 

									
	AGREED TO AND ACCEPTED:	 		 	
					
	Signature:	 	/s/ Trish Donnelly	 		 	Print Name:	 	Trish Donnelly
		 	Trish Donnelly	 		 		 	
					
	Date:	 	11/16/2009	 		 		 	

  
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 SCHEDULE A TO NON-DISCLOSURE, 

NON-SOLICITATION AND NON-COMPETITION AGREEMENT 
 Unless waived in writing by the Company, the post-termination restrictions on employment contained in paragraph 2(a) above shall apply to employment with the following entities, as well as their parent
and subsidiary companies: 
 Aeropostale 
 Abercrombie & Fitch brands 
 American Eagle brands 

Ann Taylor 
 Coach 

Gap brands 
 Kate Spade 

Limited brands 
 Liz Claiborne Brands 

LVMH 
 Ralph Lauren brands 

Theory 
 Tommy Hilfiger 

Tory Burch 
 Urban Outfitters brands 

Any retail apparel start-up operated by one of the above companies 

  
 6exhibit_10-1.htm

EXHIBIT 10.1

Date: October 13, 2010

 

 

 

Mr. Paul Farn, Group CEO

Innovative Software Direct Plc

 

Re: Letter of Intent

 

 

Dear Mr. Farn:

 

This Letter of Intent sets forth the principal business points for the proposed acquisition by IA Global, Inc. (“Acquirer”) of PowerDial Systems Ltd, a VOIP Provider (“Systems”) and PowerDial Services Ltd, a VOIP Provider (“Services” and together with Systems, the “Companies”) from Innovative Software Direct Plc, a Registered UK-based Public Company (“Seller”), subject to negotiation of definitive agreements between Acquirer and Seller covering the terms set forth below and other customary provisions for transactions of this kind.

 

1.           Acquisition. On the terms and conditions set forth below, Acquirer will acquire all of the outstanding capital stock of the Companies owned by Seller in exchange for 2.4 million shares of Acquirer common stock valued at US$1.00 per share (the “Shares”). The Shares shall not be registered and shall not have registration rights associated with them. The Shares shall be restricted in accordance with the applicable resale regulations of the Securities and Exchange Commission.

 

(a)           A lock-up agreement for six months on the Shares;

 

(b)           If the Seller increases EBIDTA by $250,000 for a total greater than $1,900,000 of EBIDTA either via merger or organic growth by the end of financial year 2011, Acquirer will issue an additional 500,000 shares of Acquirer common stock. The Shares shall not be registered and shall not have registration rights associated with them. The Shares shall be restricted in accordance with the applicable resale regulations of the Securities and Exchange Commission. If the Seller has been able to meet the stated earnings requirements listed above, these additional restricted shares will be issued by March 31, 2012.

 

(c)            With the assistance of certain affiliates of Seller and their investor network, the Acquirer will issue in a private placement up to US$2 million of additional Acquirer common stock post merger. These shares will be issued with attendant registration rights via a PIPE transaction. The post merger board of the acquirer will address the pricing and the terms of sale of the additional shares and approval of the acquisitions below. The funds received by Acquirer in the foregoing financing will be used to acquire 100% interest in VOIP, IT, telecom and software companies, subject to IAGI board of directors approval;

 

(d)           Acquirer may use up to 10% of the funds raised in the foregoing financings for legal, general, and administrative costs incurred by Acquirer in connection with the referenced transactions;

 

 

  

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(e)           Approval of Acquirer and Seller board of directors and, if necessary Acquirer and Seller shareholders and any applicable governmental or regulatory agencies is required;

(f)           Acquirer must have completed and be satisfied in its sole discretion with due diligence of the Companies and any associated entities;

(g)           An agreement by Acquirer to hire Mr. Paul Farn under an employment contract acceptable to both parties;

(h)           Agreements on a dual AIM listing plan and discounted due diligence support for European acquisitions;

(i)            Customary negative covenants by the Company, including a prohibition on issuance of new shares, options or warrants by the Company;

 

(j)            Appointment to the Acquirer board of directors of Douglas Johnson-Poensgen and Clive Sawkins or any other 2 directors acceptable to both parties;

(k)           Appointment of current ISD Board to a newly-formed Advisory Board which will be involved in M&A consultation and general oversight of VOIP, IT and telecoms operations.

 

2. Definitive Agreements. The parties will endeavor to negotiate definitive agreements containing the terms set forth in this letter of intent and negotiate other appropriate terms, representations, warranties and covenants. The initial drafts of the definitive agreements will be prepared by Acquirer’s counsel.

 

3. Exclusive Negotiations.

 

(a)            Seller agrees that during the “Exclusivity Period” (as defined below) neither it nor the Companies will, directly or indirectly, through any other, director, affiliate or agent of Seller or Companies or otherwise, solicit, initiate, entertain or encourage any proposal or offer from any third party relating to (in a single or series of related transactions) any merger or consolidation of Companies, dissolution of Companies or the acquisition of any assets of or any equity interests in Companies outside the ordinary course of business (each of which shall be considered an “Acquisition”); nor will Seller, Companies or their affiliates participate in any negotiations regarding, or furnish to any person any information with respect to, or otherwise cooperate with, facilitate or encourage any effort or attempt by any person to do or seek an Acquisition. Seller shall immediately cease and cause to be terminated all such contacts or negotiations with third parties. As used herein the term “Exclusivity Period” shall mean that time period beginning on the date of this letter of intent and ending on the termination of this letter of intent.

 

 

  

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(b)           If Sellers or the Company shall receive an unsolicited written offer relating to an Acquisition as described in paragraph 3(a), Sellers shall promptly notify Acquirer of such offer and keep Acquirer informed of the status thereof.

 

4.           Conduct of Business. From and after this date until termination of this letter of intent, Seller agrees that the Companies will conduct their respective businesses only in the ordinary course of business and consistent with past practice and will not incur any obligations or indebtedness or undertake any extraordinary transactions with regard to the business or assets without the prior written consent of the Acquirer. Seller specifically agrees that Seller and the Companies shall use commercial reasonable efforts to preserve intact the business organization of both Companies, to keep available the services of their current key employees and to preserve the good will of those having business relationships with the Companies or their businesses and that the Companies shall not sell or transfer any assets, accounts or change vendors.

 

5.           Confidentiality; Access. Pursuant to the terms of the Confidentiality Agreement previously executed between Acquirer and Seller, and until this letter of intent is terminated as provided below, Seller shall provide Acquirer and its representatives full access at reasonable times to the properties, books and records of Company, for purpose of conducting such investigations, appraisals or audits as Acquirer deems reasonably necessary or advisable under the circumstances. Acquirer agrees to keep the information it obtains in such investigation strictly confidential to the extent provided in the Confidentiality Agreement.

 

6.           Publicity. The parties agree to keep this letter of intent and the proposed transactions and agreements (including drafts of such agreements) strictly secret and confidential until such time as they mutually agree that a public announcement shall be made, provided that if in the written opinion of counsel for either of the parties public disclosure is required under the federal securities laws, then the consent of the other party shall not be required. In all events, the parties shall consult with each other and use all reasonable efforts to agree on the content and manner of any of any disclosure permitted or required under this section. The provisions of this paragraph shall terminate upon termination of this letter as provided below.

 

7.           Effect and Enforceability of Letter. This letter of intent constitutes merely an outline of the principal intended terms of the proposed transaction to facilitate the negotiation and preparation of definitive agreements. Neither this letter of intent nor any negotiations or understandings prior to the execution of definitive agreements is intended to be nor shall such constitute a binding and legally enforceable agreement of the parties hereto, except for paragraphs 3, 4, 5, 6, 7, 8, 9, 11, 12 and 13 (the “Binding Provisions”). Each party covenants not to institute or participate in any proceeding seeking to establish a contrary interpretation.

 

 

 

 

  

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8.           Injunctive Relief. It is understood and agreed that money damages would not be a sufficient remedy for any breach of the enforceable provisions of this letter of intent by either party hereto and that the parties shall be entitled to equitable relief, including injunction and specific performance, as a remedy for any such breach. Such remedies shall not be deemed to be the exclusive remedies for a breach by either party of the enforceable provisions of this letter of intent, but shall be in addition to all other remedies available at law or equity to the non-breaching party. In the event of litigation relating to this letter of intent, if a court of competent jurisdiction determines that any party has breached the enforceable provisions of this letter of intent, then such party shall pay to the other the reasonable legal fees and disbursements incurred in connection with litigation relating thereto, including any appeal there from.

 

9.           Termination; Effectiveness. The Binding Provisions will automatically terminate on October 31, 2010 (unless extended by written consent of the parties), and may be terminated earlier upon written notice by mutual agreement of the parties. Upon termination of the Binding Provisions, the parties will have no further obligations hereunder, except as stated in paragraphs 5, 6, 9, 11, 12 and 13 of this letter of intent, which shall survive and shall not terminate.

 

10.            Closing. Acquirer and Seller will endeavor to close and consummate the transactions contemplated herein on or before October 31, 2010.

 

11.            Costs. The Parties will be responsible for and bear all of their respective costs and expenses (including any broker’s, finder’s or investment banking fees and the expenses of its representatives) incurred at any time in connection with pursuing or consummating the possible transactions contemplated herein.

 

12.            Termination of Prior Agreements; Integration. The binding provisions of this letter of intent constitute the full and complete agreement of Acquirer and Seller with respect to the subject matter contained in this letter of intent and there are no further or other agreements or understandings, written or oral, in effect between Acquirer and Seller relating to such subject matter except as expressly referred to herein.

 

13.            Governing Law. This letter of intent shall be governed, construed and interpreted in accordance with the laws of the State of California, without giving effect to principles of conflicts of law.

 

[Signature Page Follows]

 

 

 

 

 

 

 

  

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If the foregoing correctly reflects our mutual intentions as a basis for proceeding toward negotiation of definitive agreements, please so signify by executing and returning to us the enclosed duplicate copy of this letter of intent.

 

                                                               Sincerely,

 

	
  

	
/s/ Brian Hoekstra_______________

	
  

	
Brian Hoekstra

	
  

	
Chief Executive Officer

	
  

	
IA Global, Inc.

 

Date: October 13, 2010

 

AGREED AND ACCEPTED:

 

Innovative Software Direct Plc

 

/s/ Paul Farn__________________

 

By: Paul Farn

 

Group Chief Executive Officer

 

Date: October 13, 2010

 

PowerDial Systems and Powerdial Services Ltd

 

/s/ Paul Farn__________________

 

By: Paul Farn

 

Group Chief Executive Officer

 

Date: October 13, 2010

 

 

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