Document:

exhibit_10-2.htm

     

     

     

                                                                                                             EXHIBIT 10.2

     

     

    

    EMPLOYMENT
AGREEMENT

    

    This Employment Agreement (this
"Agreement") is entered into as of June   11   ,
2007,
by and between Barden Nevada Gaming, LLC ("Employer" or the “Company”) and
Michael Darley ("Executive").

    

    
      	
              1.  

            	
              Employment.  Employer
      hereby employs Executive, and Executive hereby accepts employment by the
      Employer, as the Vice President and General Manager of Fitz Casino and
      Hotel – Las Vegas and agrees to perform such executive, managerial and
      administrative duties, commensurate with Executive's position, as Employer
      may specify from time to time, during the Specified Term as defined in
      paragraph 2.

            

    

     

    
      	
              2.  

            	
              Effective Date;
      Specified Term.  This Agreement shall be effective as of
      May 1, 2007 (the “Effective Date”).  Subject to earlier
      termination as provided herein, the term of the Executive’s employment
      hereunder shall terminate twenty-four (24) months after the Effective Date
      (the “Specified Term”).  If either party to this Agreement
      chooses not to renew the terms and conditions set forth herein by
      exercising their rights under this paragraph 2, then Executive’s
      employment with Employer may continue on an at-will basis and no
      paragraph, section, duty or obligation appearing in this Agreement shall
      be binding on the parties except paragraphs 6, 7, 8, 9, 14, 15, 16, 17,
      18, 19, 20, and 22.  Notwithstanding the foregoing, the parties
      to this Agreement are free to agree in writing to extend the Specified
      Term or other provisions of this
Agreement.

            

    

     

    
      	
              3.  

            	
              Compensation.

            

    

     

    
      	
              a.  

            	
              Base
      Salary. During the
      Specified Term, in consideration of the performance by Executive of
      Executive's obligations hereunder to Employer, Employer shall pay
      Executive an annual base salary (the "Base Salary") of Two Hundred
      Seventy Thousand Dollars ($270,000.00). The Base Salary shall be payable
      in accordance with the payroll practices of Employer as in effect from
      time to time for Employer's senior executives.  The Base Salary
      shall be reviewed annually, exclusively by Employer, and any increase
      thereto shall be in Employer’s sole
discretion.

            

    

     

    
      	
              b.  

            	
              Bonus
      Compensation.  Executive shall be
      entitled to participate in Employer’s discretionary bonus or incentive
      plan as formulated from time to time by Employer’s Board of Directors in
      its sole discretion, which shall be equal to a target rate of thirty
      percent (30%) of the actual Base Salary that was paid to Executive during
      the bonus plan year and based on the current bonus program in effect at
      that time.

            

    

     

    

    
      
        
           

        

        
          1

          
            

          

        

        
           

        

      

    

    

    

     

    
      	
              c.  

            	
              Executive Benefit
      Programs.  During the Specified Term, Executive shall be
      entitled to participate in all of Employer's benefit plans (the "Plans")
      as are generally made available from time to time to Employer's senior
      executives, subject to the terms and conditions of such plans, and subject
      to Employer's right

            

    

     

    to amend,
terminate or take other similar actions with respect to such
plans.  To the extent such Plans include life insurance, the Company
agrees to provide Executive life insurance on terms and conditions no less
favorable than similarly situated senior executives.  The Executive
shall receive a maximum reimbursement of Five Thousand Dollars ($5,000.00) per
calendar year for un- reimbursed medically necessary expenses incurred in the
same calendar year and submitted in accordance with Company Policy.

     

    
      	
              d.  

            	
              Business Expense
      Reimbursements.  Employer will pay or reimburse Executive
      for all reasonable out-of-pocket expenses, including travel expenses,
      Executive incurs during the Specified Term in the course of performing
      Executive's duties under this Agreement upon timely submission of
      appropriate documentation to Employer, as prescribed from time to time by
      Employer.

            

    

     

    
      	
              e.  

            	
              Vacation.  At
      the Effective Date, Executive shall be entitled to four (4) work weeks
      (the equivalent of twenty (20) days) paid vacation to be taken at times
      mutually acceptable to the Employer and Executive; provided, however, that
      Executive shall not be entitled to compensation for any vacation accrued
      but not used in any anniversary year except upon termination of Executives
      employment by Executive With Cause or termination by the Company Without
      Cause.  Unused vacation days cannot be carried forward or banked
      for future years absent express written consent by a duly authorized
      representative of the employer.

            

    

     

    
      	
              4.  

            	
              Extent of
      Services.  Executive agrees
      that the duties and services to be performed by Executive shall be
      performed exclusively for Employer.  Executive further agrees to
      perform such duties in an efficient, trustworthy, lawful, and businesslike
      manner.  Executive agrees not to render to others any service of
      any kind whether or not for compensation, or to engage in any other
      business activity whether or not for compen­sation, that is similar to
      or conflicts with the performance of Executive's duties under this
      Agreement, without the prior written approval of the Board of
      Directors.  Executive agrees to sign an acknowledgement form,
      which states that the Company is Executive’s primary
      Employer.  Additionally, any services performed by Executive
      that are outside the realm of his duties and responsibilities, as the
      Employer’s Vice President and General Manager of Fitz Casino and Hotel –
      Las Vegas, will not be performed on Company time or during Company
      business hours; and such outside services will not be rendered by
      utilizing Company property.

            

    

     

    

    
      
        
           

        

        
          2

          
            

          

        

        
           

        

      

    

    

    

     

    
      	
              5.  

            	
              Policies and
      Procedures.  In addition to the terms herein, Executive
      agrees to be bound by Employer's policies and procedures including drug
      testing and background checks, as they may be established or amended by
      Employer in its sole discretion from time to time.  In the event
      the terms in this Agreement conflict with Employer's policies and
      procedures, the terms herein shall take
  precedence.

            

    

     

    
      	
              6.  

            	
              Licensing
      Requirements.  Executive acknowledges that Employer is
      engaged in a business that is or may be subject to and exists because of
      privileged licenses issued by governmental authorities in Nevada and other
      jurisdictions in which Employer and its parents, subsidiaries, affiliates
      and joint ventures (collectively “Employer Group”) is engaged in or has
      applied to engage in or, during the Specified Term, may apply to engage in
      business.  If requested to do so by Employer or Employer Group,
      Executive shall apply for and obtain any license, qualification, clearance
      or the like that shall be requested or required of Executive by any
      regulatory authority having jurisdiction over Employer or Employer
      Group.  Additionally, Executive shall timely prepare and submit
      to Employer all background information forms and other documents required
      pursuant to The Majestic Star Casino, LLC, Gaming Compliance
      Program.  Any and all costs associated with training and license
      qualifications, clearances or the like shall be paid by the
      Employer.

            

    

     

    
      	
              7.  

            	
              Failure to Satisfy
      Licensing Requirement.  If Executive fails to satisfy any
      licensing requirement referred to in paragraph 6 above, or if any
      governmental authority directs the Employer to terminate any relationship
      it may have with Executive, or if Employer shall determine, in Employer's
      sole and exclusive judgment, that Executive was, is or might be involved
      in, or is about to be involved in, any activity, relationship(s) or
      circumstance that could or does jeopardize the business of Employer or
      Employer's Group, their reputation or such licenses, or if any such
      license is threatened to be, or is, denied, curtailed, suspended or
      revoked, this Agreement may be terminated by Employer and the parties'
      obligations and responsibilities shall be determined by the provisions of
      paragraph 11(a).

            

    

     

    

    
      
        
           

        

        
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              8.  

            	
              Restrictive
      Covenants.

            

    

     

    
      	
              a.  

            	
              Competition.  Executive
      acknowledges that, in the course of Executive's responsibilities
      hereunder, Executive will form relationships and become acquainted with
      certain confidential and proprietary information as further described
      herein.  Executive further acknowledges that such relationships
      and information are and will remain valuable to the Employer and Employer
      Group and that the restrictions on future employment as set forth herein
      are reasonably necessary in order for Employer and Employer Group to
      remain competitive in the gaming industry.  Except as otherwise
      provided in paragraphs, 11 and 12, Executive agrees that during the period
      of his employment with the Company and for the twelve (12) month period
      following termination of his employment with the Company, for whatever
      reason, he will not become a stockholder, director, officer, employee or
      agent of or consultant to any corporation,  partnership or other
      entity or engage in any business as a sole proprietor in or act as a
      consultant to any such entity or otherwise engage, directly or indirectly,
      in any enterprise, in each case which competes with or has a vendor
      relationship with any business or activity engaged in, or known by
      Executive to be contemplated to be engaged in, by the Company or the
      Employer Group within downtown Las Vegas, Nevada, which is bounded on the
      north by Bonanza, south by Charleston Blvd, on the east by Las Vegas
      blvd., and on the west by Main Street, or within  50 mile radius
      of the Indiana jurisdiction in the Employer Group is engaged in gaming or
      proposes to engage in Gaming; provided, however, that competition shall
      not include the ownership (solely as an investor and without any other
      participation in or contact with the management of the business) of less
      than one percent of the outstanding shares of stock of any corporation
      engaged in any such business, which shares are regularly traded on a
      national securities exchange or in an over-the-counter
      market.  The Company, in its sole discretion, may waive one or
      more of the restrictions set forth in this subparagraph; however, any such
      waiver must be in writing executed by an authorized Company
      representative, and shall be effective only to the extent it is set forth
      in writing.

            

    

     

    
      	
              b.  

            	
              Non-solicitation-Customers:  During
      and after Executive’s employment with Employer, the Executive covenants
      not to:

            

    

     

    
      	
               
      

            	
               i.

            	
              Make
      known to any third party or use other than in the performance of his
      duties the names and addresses of any of the customers of Employer or any
      member of Employer Group, or any other information or data pertaining to
      those customers;

            

    

     

    

    
      
        
           

        

        
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              ii.

            	
              Call
      on, solicit, induce to leave and/or take away, or attempt to call on,
      solicit, induce to leave and/or take away, any of the customers of
      Employer or any member of the Employer Group, either for Executive's own
      account or for any third
party;  and

            

    

     

    
      	
               
      

            	
              iii.

            	
              Call
      on, solicit and/or take away, any potential or prospective customer of
      Employer or any member of the Employer Group, on whom the Executive called
      or with whom Executive became acquainted during employment (either before
      or during the Specified Term), either for Executive's own account or for
      any third party; and

            

    

     

    
      	
               
      

            	
              c.

            	
              Non-Solicitation- Employees and
      Independent Contractors.   For the twelve (12) month
      period immediately following cessation of Executive’s employment with
      Employer for any reason whatsoever, Executive covenants not to approach or
      solicit any employee or independent contractor of Employer or any member
      of the Employer Group with a view towards enticing such person to leave
      the employ or service of Employer or any member of the Employer Group, or
      hire or contract with any employee or independent contractor of Employer
      or any member of the Employer Group, without the prior written consent of
      the Employer, such consent to be within Employer's sole and absolute
      discre­tion.

            

    

     

    
      	
               
      

            	
              d.

            	
              Confidentiality.  Executive
      covenants and agrees that Executive shall not at any time during the
      Specified Term or thereafter, without Employer's prior written consent,
      such consent to be within Employer's sole and absolute discretion,
      disclose or make known to any person or entity outside of the Employer
      Group any Trade Secret (as defined below), or proprietary or other
      confidential information, in any form, concerning Employer or any member
      of the Employer Group, including without limitation, Employer's
      custom­ers, its casino, hotel, and marketing practices and procedures,
      management and employment practices, procedures and policies, or any other
      information regarding Employer or any member of the Employer Group, which
      is not already and generally known to the public through no wrongful act
      of Executive or any other party.  Executive covenants and agrees
      that Executive shall not at any time during the Specified Term or
      thereafter, without the Employer's prior written consent, utilize any such
      Trade Secrets, proprietary or confidential information in any way other
      than in connection with his employment hereunder.  For purposes
      of this Agreement, Trade Secrets is defined as data or information,
      including a formula, pattern, compilation, program, device, method,
      know-how, technique or process, that derives any economic value, present
      or potential, from not being generally known to, and not being readily
      ascertainable by proper means by, other persons who may or could obtain
      any economic value from its disclosure or
use.

            

    

     

    

    
      
        
           

        

        
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              e.

            	
              Third Party
      Information.  Executive acknowledges that Employer and
      other members of the Employer Group have received and in the future will
      receive from third parties their confidential or proprietary information
      subject to a duty to maintain the confidentiality of such information and
      to use it only for certain limited purposes.  Executive will
      hold all such confidential or proprietary information in the strictest
      confidence and will not disclose it to any person or entity or to use it
      except as necessary in carrying out Executive's duties hereunder
      consistent with Employer's (or such other member of the Employer Group's)
      agreement with such third party.

            

    

     

    
      	
               
      

            	
              f.

            	
              Employer's
      Property.  Executive hereby confirms that Trade Secrets,
      proprietary or confidential information and all information concerning
      Employer or Employer Group’s customers, goods, services or facilities
      owned, operated or managed by Employer constitute Employer's exclusive
      property (regard­less of whether Executive possessed or claims to have
      possessed such information prior to the date hereof).  Executive
      agrees that upon termination of employ­ment, Executive shall promptly
      return to the Employer all documents, papers, notes, notebooks,
      memo­randa, computer disks, and any other similar repositories of
      information (regardless of whether Executive possessed such information
      prior to the date hereof) containing or relating in any way to the Trade
      Secrets or proprietary or confidential information of each member of the
      Employer Group, including but not limited to, the documents referred to in
      paragraph 9(c).  Such repositories of information also include
      but are not limited to any so-called personal files or other personal data
      compilations in any form, which in any manner contain any Trade Secrets or
      proprietary or confidential information of Employer or any member of the
      Employer Group.

            

    

     

    
      	
               
      

            	
              g.

            	
              Notice to
      Employer.  Executive agrees to notify Employer
      immediately of any employers for whom Executive works or provides services
      (whether or not for remuneration to Executive or a third party) during the
      Specified Term or within the Restrictive
Period.

            

    

     

    
      	
               
      

            	
              9.

            	
              Representations.  Executive hereby
      represents, warrants and agrees with Employer
  that:

            

    

     

    
      	
              a.  

            	
              The
      covenants and agreements contained in paragraphs 4 and 8 above are
      reasonable, appropriate and suitable in their geographic scope, duration
      and content; the Employer's agreement to employ the Executive and a
      portion of the compensation and consideration to be paid to Executive
      hereunder is separate and partial consideration for such covenants and
      agreements; the Executive shall not, directly or indirectly, raise any
      issue of the reasonableness, appropriateness and suitability of the
      geographic scope, duration or content of such covenants and agreements in
      any proceeding to enforce such covenants and agreements; and such covenants
      and agreements shall survive the termina­tion of this Agreement, in
      accordance with their terms;

            

    

     

    

    
      
        
           

        

        
          6

          
            

          

        

        
           

        

      

    

    

    
      	
               
      

            	
              b.

            	
              The
      enforcement of any remedy under this Agreement will not prevent Executive
      from earning a livelihood, because Executive's past work history and
      abilities are such that Executive can reasonably expect to find work in
      other areas and lines of business;

            

    

     

    
      	
               
      

            	
              c.

            	
              The
      covenants and agreements stated in paragraphs 4, 6, 7 and 8 above are
      essential for the Employer's reasonable
  protection;

            

    

     

    
      	
               
      

            	
              d.

            	
              Employer
      has reasonably relied on these covenants and agreements by Executive;
      and

            

    

     

    
      	
               
      

            	
              e.

            	
              Executive
      has the full right to enter into this Agreement and by entering into and
      performance of this Agreement will not violate or conflict with any
      arrangements or agreements Executive may have or agreed to have with any
      other person or entity.

            

    

     

    
      	
               
      

            	
              f.

            	
              Executive
      acknowledges and warrants to Employer the receipt and sufficiency of
      separate consideration for the assignment by Employer of Employer's rights
      and Executive's obligation under paragraph
8.

            

    

     

    Notwithstanding
paragraph 19, Executive agrees that in the event of Executive's breach or
threatened breach of any covenants and agreements set forth in paragraphs 4 and
8 above, Employer may seek to enforce such covenants and agreements in court
through any equitable remedy, including specific performance or injunction,
without waiving any claim for damages.  In any such event, Executive
waives any claim that the Employer has an adequate remedy at law or for the
posting of a bond.

     

    
      	
              10.  

            	
              Termination for
      Death.  Executive's employment hereunder shall terminate
      upon Executive's death.  In the event of Executive's death,
      Executive (or Executive's estate)  shall have no right to
      receive any compensation or benefit hereunder or otherwise from Employer
      or any member of the Employer Group on and after the effective date of
      termination of employment other than: (1) unpaid Base Salary earned to the
      date of termination of employment (which shall be paid on Employer's next
      scheduled payroll date); (2) any earned but unpaid Bonus Compensation
      under paragraph 3(b) prorated for the period of employment during the
      applicable bonus period;  (3) business expense reimbursement
      pursuant to paragraph 3(d); (4) benefits provided pursuant to paragraph
      3(c), subject to the terms and conditions applicable thereto; (5) the
      equivalent of sixty (60) days Base Salary together with two months COBRA
      payment for Executive’s then-insured dependents at the Employer’s expense;
      and, (6) any earned and unpaid
vacation.

            

    

     

    

    
      
        
           

        

        
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              11.  

            	
              Termination by
      Employer

            

    

     

    
      	
              a.  

            	
              For
      Cause.  Employer may terminate Executive's employment
      hereunder for Cause (as defined below) at any time.  If Employer
      terminates Executive's employment for Cause, Executive shall have no right
      to receive any compensation or benefits hereunder or otherwise from
      Employer or any member of the Employer Group on and after the effective
      date of termination of employment other than:   (1) unpaid
      Base Salary earned to the date of termination of employment (which shall
      be paid on Employer's next scheduled payroll date); (2) business expense
      reimbursement pursuant to paragraph 3(d); and (3) benefits provided
      pursuant to paragraph 3(c), subject to the terms and conditions applicable
      thereto.  For purposes of this paragraph 11, Cause is defined as
      Executive's:  (i) failure to abide by Employer’s policies and
      procedures; (ii) misconduct, gross negligence, insubordination, or
      inattention to Employer’s business; (iii) failure to perform the duties
      required of Executive up to the standards established by the Executive
      Vice President/Chief Operating Officer, or other material breach of this
      Agreement; or, (iv) failure or inability to satisfy the requirements
      stated in paragraphs 6,  7,  and
      8 above.  Should Employer believe that cause exists to terminate
      Executive, Employer agrees to provide written notice to Executive of the
      specific items identified as cause and afford Executive a period of thirty
      (30) business days from receipt of the written notice to remedy the
      deficiencies to Employer's satisfaction.  If, at the conclusion
      of the cure period, Employer determines Executive has not satisfactorily
      remedied the deficiency, Employer shall notify Executive who shall be
      immediately terminated.  Nothing in this paragraph 11 precludes
      Employer from immediately terminating Executive's employment if Executive
      is convicted of felonious criminal conduct; physically aggressive conduct
      toward any co-worker, patron, vendor or customer of Employer; illegal drug
      use; or based upon any gaming authority's demand that Employer do
      so.

            

    

     

    

    
      
        
           

        

        
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                b.  

              	
                Without
      Cause.  Employer may terminate Executive at any time
      during the Specified Term upon thirty (30) days’ written notice, or, in
      the Employer’s sole discretion, the equivalent of thirty (30) days’ Base
      Salary in lieu of notice.  In addition to any amount due in lieu
      of notice, should Employer terminate Executive’s employment without cause,
      then Executive shall have no right to receive any compensation or benefits
      hereunder or otherwise from Employer or any member of the Employer Group
      on or after the effective date of termination of employment other
      than:  (1) unpaid Base Salary earned to the date of termination
      of employment, plus the equivalent of an additional six  (6)
      months’ Base Salary or the remainder of annual Base Salary due under this
      Agreement, whichever is less;  (2) earned but unpaid Bonus
      Compensation under Paragraph 3 (b) prorated for the period of employment
      during the applicable bonus period; (3) business expense reimbursement
      pursuant to paragraph 3 (d); (4) benefits provided pursuant to paragraph
      3(c), subject to the terms and conditions applicable thereto; (5) Employer
      paid COBRA benefits for a period of six (6) months following termination;
      and, (6) any earned and unused vacation.  Employer agrees to
      waive the non-compete provision of paragraph 8(a) in the event Employer
      terminates Executive without Cause.

              

      

       

    

     

    12.         Termination By
Executive

     

    
      	
              a.  

            	
              For Good
      Reason.  Executive may terminate Executive's employment
      hereunder for Good Reason upon thirty (30) days prior written notice to
      Employer.  “Good Reason” shall mean:  (i) failure of
      Employer to pay Executive's compensation when due; (ii) material
      reductions in Executive's duties and responsibilities without his consent;
      or (iii) following a Change in Control.  "Change in Control"
      means:  (a) a sale, exchange or transfer of more than 50% of the
      assets or earning power of the Company on a consolidated basis or more
      than 50% of its stock; (b) a merger or consolidation of the Company
      (excluding merger or consolidation where the voting securities of the
      Company prior to the merger or consolidation continue to represent more
      than 50% of the combined voting power of the surviving entity after the
      merger or consolidation); (c) any reorganization, reverse stock split or
      recapitalization that would result in a change in control; (d) any
      liquidation or dissolution of the Company; or, (e) any transactions or
      series of related transactions having the same effect as a Change in
      Control.  Should Executive terminate for Good Reason, Executive
      shall be entitled to:  (1) unpaid Base Salary earned to the date
      of termination of employment plus the equivalent of an additional six (6)
      months’ Base Salary or the remainder of annual Base Salary due under this
      Agreement, whichever is less; (2) earned but unpaid Bonus Compensation
      under Paragraph 3 (b) prorated for the period of employment during the
      applicable bonus period; (3) business expense reimbursement pursuant to
      paragraph 3 (d); (4) benefits provided pursuant to paragraph 3(c), subject
      to the terms and conditions applicable thereto; (5) Employer paid COBRA
      benefits for a period of six (6) months following termination; and (6) any
      earned and unused vacation.  Employer agrees to waive the
      non-compete provisions set forth in paragraph 8(a) in the event Executive
      terminates his employment pursuant to paragraph 12(a)(i) and
      12(a)(iii).

            

    

     

    

    
      
        
           

        

        
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    Good
Reason shall not exist unless Executive first provides the Executive Vice
President/Chief Operating Officer with written notice of the facts alleged to
constitute Good Reason and until such breach, reduction or requirement remains
uncured for thirty (30) business days following the Executive Vice President/
Chief Operating Officer’s receipt of such written notice from
Executive.  This thirty (30) business day cure period shall not apply
to a Change in Control.

     

    
      	
               
      

            	
              b.

            	
              Without Good
      Reason.  Executive may terminate
      his  employment for any reason other than Good Reason, death or
      disability, upon providing to Employer thirty (30) days’ advance written
      notice of such termination.  Should Executive terminate his
      employment for a reason other than Good Reason, death or disability,
      Executive shall have no right to receive any compensation or benefit
      hereunder or otherwise from Employer or any member of the Employer Group
      on and after the effective date of termination other than: (1) unpaid Base
      Salary earned to the date of termination of employment (which shall be
      paid on Employer's next scheduled payroll date); (2) business expense
      reimbursement pursuant to paragraph 3(d); and (3) benefits provided
      pursuant to paragraph 3(c), subject to the terms and conditions applicable
      thereto.

            

    

    

    
      	
              13.  

            	
              Release; Full
      Satisfaction.  Notwithstanding anything to the contrary,
      no payments or benefits shall be provided that are in addition to the
      payments or benefits that would be provided pursuant to paragraphs 11(b)
      and 12(a) unless and until Executive executes and delivers a standard form
      of general release of claims, and such release has become irrevocable;
      provided, however, that Executive shall not be required to release any
      indemnification rights or continuing rights to benefits under Employer's
      benefit plans, in accordance with the terms and conditions of such
      plans.

            

    

     

    
      	
              14.  

            	
              Cooperation Following
      Termination.  Following termination of Executive's
      employment hereunder for any reason, Executive agrees to cooperate with
      Employer upon the reasonable request of the Board of Directors and to be
      reasonably available to Employer with respect to matters arising out of
      Executive's services.  Employer shall reimburse, or at
      Executive's request, advance Executive for expenses reasonably incurred in
      connection with such matters.

            

    

     

    
      	
              15.  

            	
              Interpretation; Each
      Party the Drafter.  Each of the parties was represented
      by or had the opportunity to consult with counsel who either participated
      in the formulation and documentation of, or was afforded the opportunity
      to review and provide comments on, this Agreement. Accordingly, this
      Agreement and the provisions contained in it shall not be construed or
      interpreted for or against any party to this agreement because that party
      drafted or caused that party's legal representative to draft any of its
      provisions.

            

    

     

    

    
      
        
           

        

        
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              16.  

            	
              Severability.  If
      any provision hereof is unenforceable, illegal or invalid for any reason
      whatsoever, such fact shall not affect the remaining provisions hereof,
      except in the event a law or court decision, whether on application for
      declaration, or preliminary injunction or upon final judgment, declares
      one or more of the provisions of this Agreement that impose restrictions
      on Executive unenforceable or invalid because of the geographic scope or
      time duration of such restriction.  In such event, Employer
      shall have the option:

            

    

     

    (a)           To
deem the invalidated restrictions retroactively modified to provide for the
maximum geographic scope and time duration that would make such provisions
enforceable and valid; or

     

    (b)           To
terminate this Agreement pursuant to paragraph 11(a) or 11(b), whichever is
applicable.

     

    Exercise
of any of these options shall not affect Employer's right to seek damages or
such additional relief as may be allowed by law in respect to any breach by
Executive of the enforceable provisions of this Agreement.

     

    
      	
              17.  

            	
              Notice.  For
      purposes of this Agreement, notices and all other communications provided
      for in this Agreement shall be in writing and shall be deemed to have been
      duly given: (i) when personally delivered; (ii) when delivered by
      facsimile upon receipt of confirmation that the transmission was
      successful; (iii) the business day following the day when deposited with a
      reputable and established overnight express courier (charges prepaid); or
      (iv) five (5) days following mailing by certified or registered mail,
      postage prepaid and return receipt requested.  Unless another
      address is specified, notices shall be sent to the addresses indicated
      below:

            

    

     

    To
Employer:                                                                                     With
a copy to its:

    The
Majestic Star Casino,
LLC                                                        Barden
Neavda Gaming

    301 Fremont
Street                                                                              c/o
Barden Development Inc.

    Las
Vegas, NV
89101                                                                          163
Madison Suite 2000

    Attn:
Kirk
Saylor                                                                                 Detroit,
MI 48226

    Executive
Vice President/Chief Operating
Officer                          Attn:
Michelle Sherman

    Facsimile
#: (702) 382-5562

    

    AND

    

    Corporate
V.P. of Human Resources

    The
Majestic Star Casino, LLC

    301
Fremont Street

    Las
Vegas, NV 89101

    Facsimile
#: 702-382-5562

    

    
      
        
           

        

        
          11

          
            

          

        

        
           

        

      

    

    

    

    To
Executive:

    

    Michael
Darley

    3992 Via
Flamina Court

    Henderson,
NV 89052

    

    or to
such other address as either party shall have furnished to the other in writing
in accordance herewith.

    

    
      	
              18.

            	
              Tax
      Withholding.  Notwithstanding any other provision of this
      Agreement, Employer may withhold from any amounts payable under this
      Agreement, or any other benefits received pursuant hereto, such federal,
      state, local and other taxes as shall be required
  to

            

    

    be
withheld under any applicable law or regulation.

    

    19.           Dispute
Resolution.

     

    
      	
              a.  

            	
              Any
      dispute, claim or controversy arising from or related in any way to this
      Agreement or the interpretation, application, breach, termination or
      validity thereof, including any claim of inducement of this Agreement by
      fraud, or arising from or related in any way to Executive's employment
      with Employer will be submitted for final resolution by private
      arbitration before a single arbitrator and in accordance with the National
      Rules for the Resolution of Employment Disputes and practices then in
      effect of, the American Arbitration Association, or any successors thereto
      ("AAA"), except where those rules conflict with these provisions, in which
      case these provisions control; provided, however, that Employer shall have
      the right to seek in court equitable relief, including a temporary
      restraining order, preliminary or permanent injunction or an injunction in
      aid of arbitration, to enforce its rights set forth in paragraph
      8.  The arbitration will be held in Las Vegas,
      Nevada.

            

    

     

    
      	
              b.  

            	
              Giving
      recognition to the understanding of the parties hereto that they
      contemplate reasonable discovery, including document demands and
      depositions, the arbitrator shall provide for discovery in accordance with
      the Nevada Rules of Civil Procedure as reasonably applicable to this
      private arbitration.

            

    

     

    
      	
              c.  

            	
              To
      the extent possible, the arbitration hearings and award will be maintained
      in confidence, except as may be required by law or for the purpose of
      enforcement of an arbitration
award.

            

    

     

    
      	
              d.  

            	
              Each
      party shall bear its own costs and expenses incurred in connection with
      arbitration proceedings pursuant to this Agreement to
      arbitrate.  To the extent permitted by law, the costs and
      expenses of the arbitrator(s) and related expenses shall be shared equally
      between Employer, on one hand, and Executive on the other
      hand.

            

    

     

    
      	
              e.  

            	
              Each
      party hereto waives, to the fullest extent permitted by law, any claim to
      punitive or exemplary or liquidated or multiplied damages from the
      other.

            

    

     

    
      	
              20.  

            	
              No Waiver of Breach or
      Remedies.  No failure or delay on the part of Employer or
      Executive in exercising any right, power or remedy hereunder shall operate
      as a waiver thereof nor shall any single or partial exercise of any such
      right, power or remedy preclude any other or further exercise thereof or
      the exercise of any other right, power or remedy hereunder.  The
      remedies herein provided are cumulative and not exclusive of any remedies
      provided by law.

            

    

     

    
      	
              21.  

            	
              Amendment or
      Modification.  No amendment, modification, termination or
      waiver of any provision of this Agreement shall be effective unless the
      same shall be in writing and signed by the Executive Vice President/Chief
      Operating Officer and Executive, nor consent to any departure by the
      Executive from any of the terms of this Agreement shall be effective
      unless the same is signed by the Executive Vice President/Chief Operating
      Officer.  Any such waiver or consent shall be effective only in
      the specific instance and for the specific purpose for which
      given.

            

    

     

    
      	
              22.  

            	
              Governing Law;
      Venue.  The laws of the State of Nevada shall govern the
      validity, construction, and interpretation of this Agreement, without
      regard to conflict of law principles.  Each party irrevocably
      submits to the exclusive jurisdiction of the courts of the State of Nevada
      in any action, suit or proceeding of any kind arising out of or relating
      to this Agreement (including arbitration) or any matters contemplated
      hereby, and agrees that any such action, suit or proceeding shall be
      brought only in such court.

            

    

     

    
      	
              23.  

            	
              Headings.  The
      headings in this Agreement have been included solely for convenience of
      reference and shall not be considered in the interpretation or
      construction of this Agreement.

            

    

     

    
      	
              24.  

            	
              Assign­ment.  This
      Agreement is personal to Executive and may not be assigned by
      Executive.

            

    

     

    
      	
               
      

            	
                         25.

            	
              Succes­sors and
      Assigns.  This Agreement may be assigned by Employer to
      its successors and shall be binding upon the successors and assigns of
      Employer.

            

    

     

    
      	
               
      

            	
                        
      26.

            	
              Prior
      Agreements.  At the Effective Date, this Agreement shall
      supersede and replace any and all other prior discussions and negotiations
      as well as any and all agreements and arrangements that may have been
      entered into by and between Employer or any predecessor thereof, on the
      one hand, and Executive, on the other hand, prior to the Effective Date
      relating to the subject matter hereof.  Executive acknowledges
      that all rights under such prior agreements and arrangements shall be
      extinguished.

            

    

     

    

    
      
        
           

        

        
          12

          
            

          

        

        
           

        

      

    

    

    

     

    IN WITNESS WHEREOF, Employer
and Executive have entered into this Agreement as of the date first written
above.

    

    

    
      	
              MICHAEL
      DARLEY

            
	 
      	 
      
	 
      	
              /s/
      Michael L. Darley

            
	 
      	
              Signature

            
	
              Date:

            	
              7/25/07

            

    

    

    

    

    
      	
              THE
      MAJESTIC STAR CASINO, LLC

            
	 
      	 
      
	
              By:

            	
              /s/
      Kirk Saylor

            
	 
      	
              KIRK
      SAYLOR

            
	
              Its:

            	
              Executive
      Vice President and Chief Operating Officer

            
	
              Date:

            	
              6/11/07

            

    

    

    

    

    

    
      
        
           

        

        
          13Exhibit 10.1

 

Execution
Copy

 

SEPARATION AGREEMENT AND GENERAL
RELEASE

 

This Separation Agreement and General Release (the “Agreement”), is entered into on this
19th day of November, 2008, by and among New York & Company, Inc.
(f/k/a/ NY & Co. Group, Inc.), a Delaware corporation (“Holdings”), Lerner
New York, Inc., a Delaware corporation (“Lerner,” and, together with Holdings,
the “Companies”),
and Ronald Ristau (“Executive”).

 

WHEREAS,
the parties are party to the Second Amended and Restated Employment Agreement,
dated as of August 25, 2004, as amended by Amendment No. 1 to the
Second Amended and Restated Employment Agreement, dated as of December 22,
2006, by and among the Companies and Executive, and as further amended by
Amendment No. 2 to the Second Amended and Restated Employment Agreement,
dated as of April 10, 2008, by and among the Companies and Executive (the
“Employment Agreement”);

 

WHEREAS, Executive’s employment with the Companies has
terminated as of October 24, 2008 (the “Separation Date”); and

 

WHEREAS, Executive and the Companies would like to
formalize their agreement regarding the termination of their relationships.

 

NOW, THEREFORE, in consideration of the payments due
Executive under the Employment Agreement, and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties
hereto agree as follows:

 

1.             Termination.  Executive and the Companies agree that
Executive’s employment with the Companies and their direct and indirect
Subsidiaries (as defined in Section 16 of the Employment Agreement) ceased
as of the close of business on the Separation Date.  Executive and  the Companies further agree that, in accordance with the
provisions of Section 21 of the Employment Agreement, any requirement under
the Employment Agreement in respect of any written notice of termination shall
be deemed waived.  In connection
therewith, the Companies acknowledge (i) having received, as of the
Separation Date, written notice of Executive’s resignation (the “Resignation Letter”)
from each of Executive’s positions as an officer, director or manager of
Holdings or any of its Subsidiaries, including Executive’s positions as
President and Chief Financial Officer of Holdings and Lerner as well as
Executive’s position as a member of the Board of Directors of Holdings and (ii) that
the receipt of such Resignation Letter will have fully discharged the Executive
of any responsibilities to the Companies under Section 22 of the
Employment Agreement.

 

2.             Acceptance of
Agreement; Revocation.  This
Agreement was received by Executive on November 19, 2008.  Executive may accept this Agreement by
returning a signed original to Lerner or to Holdings at any time before December 11,
2008.  This Agreement shall be withdrawn
if not accepted as provided in the previous sentence on or before December 10,
2008.  Executive shall have seven days
after signing this Agreement to revoke it by delivering written 

 

 

confirmation of
revocation to Lerner or to Holdings within such seven day period.  This Agreement will not become effective until
the revocation period has expired without revocation of this Agreement by
Executive (the “Effective Date”); provided
that revocation of this Agreement shall not affect the resignation of Executive
in Section 1 above.

 

3.             Separation
Benefits.  Subject to (i) the
execution and delivery of this Agreement, and the expiration of the applicable
revocation period without this Agreement being revoked by Executive, in each
case by December 11, 2008, and in full discharge of all obligations owed
to Executive by the Companies and their Subsidiaries under the Employment
Agreement, and (ii) continued observance by Executive in all material
respects of the covenants contained in Section 11 of the Employment
Agreement (as modified herein), Executive shall be entitled to the following
benefits:

 

(a)           On or before November 30,
2008, and without regard to whether Executive complies with Section 2 of
this Agreement, Holdings shall pay Executive (i) the Accrued Compensation
(as defined in Section 9(a) of the Employment Agreement, without
regard to clause (iii) thereof), which shall include three days of unused
paid time off and (ii) reimbursement in accordance with Section 7(b) of
all expenses reasonably incurred by Executive in connection with the
performance of his duties under the Employment Agreement or for promoting,
pursuing or otherwise furthering the business or interests of Holdings or its
Subsidiaries incurred through the Separation Date and presented to Holdings for
reimbursement.

 

(b)           Holdings
shall pay Executive a Bonus (as defined in Section 4(a) of the
Employment Agreement) in an amount equal to (i) the product of (A) Fall
Bonus (as defined in Section 4(b) of the Employment Agreement) that
would otherwise have been payable to Executive for the period ending on January 31,
2009, (had Executive continued to be an employee of Holdings through the end of
such period) determined based on the actual performance of the Companies and
their Subsidiaries through such date and (B) 50% (the “Pro Rata Fall Bonus”)
and (ii) the product of (A) Full Year Bonus (as defined in Section 4(b) of
the Employment Agreement) that would otherwise have been payable to Executive
for the period ending January 31, 2009, (had Executive continued to be an
employee of Holdings through the end of such period) determined based on the
actual performance of the Companies and their Subsidiaries through such date
and (B) 75% (the “Pro
Rata Full Year Bonus”). 
If such bonuses become due, the Pro Rata Fall Bonus and Pro Rata Full
Year Bonus shall each be paid to Executive when similar fall and annual
bonuses, respectively, are paid to Lerner’s employees generally, but in any
event, on or after April 24, 2009 and prior to May 8, 2009.

 

(c)           As consideration for
the continued observance by Executive in all material respects of the covenants
contained in Section 11(b) of the Employment Agreement (as modified
herein), Holdings shall continue Executive’s Base Salary (as defined in Section 3
of the Employment Agreement) of $600,000 from the date immediately following
the Separation Date to the second anniversary of the Separation Date (the “Salary Continuation Period”).  Payments during the Salary Continuation
Period (the “Salary
Continuation Payments”) shall be made on a weekly basis, the
gross amount of each such weekly payment being $11,538.46, with the first such
payment being made on the first day of the seventh month following the
Separation Date in respect of the Salary Continuation Payments that otherwise
would have been made to Executive during the period 

 

2

 

beginning on the first
day of the Salary Continuation Period and ending on April 24, 2009.  Payments following this initial payment shall
be made on a weekly basis, the gross amount of each such weekly payment being
$11,538.46, through the duration of the Salary Continuation Period.

 

(d)           As consideration for
the continued observance by Executive in all material respects of the covenants
contained in Section 11(b) of the Employment Agreement (as modified
herein), Holdings shall pay Executive an amount equal to (i) Executive’s
Spring Target Bonus ($157,500) (as defined in Section 4(b) of the
Employment Agreement) for the six-month period commencing on each of February 1,
2009 and January 31, 2010, with each such payment to be made at the time
Spring Target Bonuses are paid to other executives, but in any event prior to August 31,
2009 (in the case of the first payment) and on or after January 1, 2010,
but in any event prior to August 31, 2010 (in the case of the second
payment), (ii) Executive’s Fall Target Bonus ($202,500) (as defined in Section 4(b) of
the Employment Agreement) for the six-month period commencing on each of August 2,
2009 and August 1, 2010, with each such payment to be made at the time
Fall Target Bonuses are paid to other executives, but in any event on or after January 1,
2010 and prior to March 31, 2010 (in the case of the first payment) and on
or after January 1, 2011 and prior to March 31, 2011 (in the case of
the second payment), and (iii) Executive’s Full-Year Target Bonus
($90,000) (as defined in Section 4(b) of the Employment Agreement)
for the twelve-month period commencing on each of February 1, 2009 and January 31,
2010, with each such payment to be made at the time Full-Year Target Bonuses
are paid to other executives, but in any event on or after January 1, 2010
and prior to March 31, 2010 (in the case of the first payment) and on or
after January 1, 2011 and prior to March 31, 2011 (in the case of the
second payment).  No payment under this Section 3(d) shall
be made prior to April 24, 2009.

 

(e)           Holdings shall take
such actions as may be necessary to immediately vest Executive’s unvested stock
option or other unvested long-term incentive awards that, by their terms, would
have vested during the calendar year in which Executive’s employment was
terminated.  Since there are no unvested
stock options or long-term incentive awards held by Executive that, by their
terms, vest during 2008, Executive is not entitled to additional vesting of any
outstanding equity awards and all equity awards held by or through Executive
shall continue to be subject to the terms and conditions applicable to such
equity awards.

 

(f)            During the Salary
Continuation Period, Holdings shall, at its expense, provide to Executive and
Executive’s covered dependents medical and dental benefits substantially
similar in the aggregate to those provided to Executive and Executive’s covered
dependents immediately prior to the Separation Date, including benefits
provided under the New York & Company Executive Medical Plan (the “Executive Medical Plan”).  Holdings shall (i) provide Executive
with a monthly cash reimbursement equal to the total monthly premium payment
(employee and employer portion) paid for coverage of Executive and Executive’s
covered dependents, such payment to be made within one month of Executive’s
payment of the applicable premium, and (ii) provide a monthly cash
reimbursement to Executive of amounts not covered under such continued medical
coverage, to the extent permitted by the Executive Medical Plan, such monthly
reimbursement to be made as soon as administratively practicable after
submission of the documents required for reimbursement.  The amount of expenses eligible for
reimbursement under this Section 4(f) during one taxable year of the
Executive shall not affect the expenses eligible for reimbursement in any other
taxable year of the Executive.  The
Executive’s right to reimbursement under this Section 4(f) shall not
be subject to 

 

3

 

liquidation or exchange
for another benefit.  Notwithstanding the
foregoing provisions of this Section 4(f), Holdings’ obligation with
respect to coverage under this Section 4(f) shall be eliminated to
the extent that Executive or Executive’s covered dependents, as applicable,
obtain, during the Salary Continuation Period, equivalent or substantially
similar benefits pursuant to a subsequent employer’s benefit plans.  Holdings hereby acknowledges and agrees that
Executive’s termination of employment with the Companies as of the Separation
Date shall not be treated as a “qualifying event” within the meaning of the
Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”), and that,
upon the cessation of coverage under this Section 4(f), Executive and
Executive’s covered dependents shall have all rights to which they are entitled
under COBRA.  Thereafter, Holdings’
obligation with respect to such coverage shall be eliminated to the extent that
such coverage terminates in accordance with COBRA.

 

(g)           Holdings will provide
Executive with Holdings’ executive level outplacement services through Lee
Hecht Harrison; provided that Executive begins using such service no later than
January 31, 2009.

 

(h)           Holdings shall cause its legal counsel to render any number of opinions
(but not more than two opinions in any 45 day period and not more than 15
opinions in the aggregate) to its transfer agent to permit the sale of Executive’s
shares of Holdings common stock pursuant to Rule 144 under the Securities
Act of 1933, as amended, within ten business days of receiving all
documentation reasonably requested from Executive, including any certificates
from third parties, as being necessary for legal counsel to render such
opinions.  Holdings or its counsel shall
provide appropriate instruction to Executive regarding documentation necessary
in order to render such opinions.

 

(i)            Holdings shall, at its expense, assist Executive
in compliance with Executive’s obligations under Section 16(a) of the
Securities Exchange Act of 1934, as amended (the “Exchange Act”), including, but not
limited to, preparation and filing of any Forms 4 required to be filed by
Executive; provided, however, that Executive shall provide Holdings with
appropriate notice of any transactions required to reported under Section 16(a) of
the Exchange Act, either prior to the time such transactions are effected or
contemporaneously with such transactions if prior notice is impractical, so
that Holdings will have adequate time to prepare any necessary filings on a
timely basis.

 

(j)            Each weekly or monthly installment payment made
pursuant to this Section 3 shall be treated by the Companies and Executive
as a separate payment for all purposes of the Final Treasury Regulations under Section 409A
(“409A”)
issued on April 17, 2007 (the “Regulations”).

 

(k)           For purposes of
determining whether Executive has incurred a “separation from service” under
the Regulations, the Companies agree that the “default rule” should be applied
for purposes of defining “service recipient” and “employer” under the
Regulations.

 

(l)            The parties
acknowledge and agree that Executive is not entitled to any further payment
under the Employment Agreement, including Section 9 thereof, and that any
of the Companies’ payment obligations contained in the Employment Agreement
(other than those set forth in Section 23 of the Employment Agreement)
shall become null and void upon the Effective Date.

 

4

 

(m)          Notwithstanding anything in this Agreement to the contrary, Lerner shall
be jointly and severally liable for the obligations to Executive under this
Agreement, including, but not limited to, the obligations of Holdings under Section 3
of this Agreement.

 

(n)           In the event of
Executive’s death prior to the end of the Salary Continuation Period, Holdings
shall pay to Executive’s estate, or as may be directed by the legal
representatives of such estate, the benefits due pursuant to (a)-(f) of
this Section 3, at the time and in the same form that such payments are
due to the Executive thereunder.

 

(o)           Section 11(b) of
the Employment Agreement is hereby modified so that only Competitive Activity
for any of the entities listed on Exhibit A hereto, including their
Subsidiaries and successors and assigns by reason of merger, consolidation,
reorganization or otherwise, will be considered restricted by such Section 11(b) of
the Employment Agreement.

 

4.             Unconditional
and Full General Release of All Claims. 
Executive on his behalf and on behalf of his agents, heirs,
administrators, executors, attorneys and assigns, and anyone acting or claiming
on each of their respective behalves, hereby covenants never to sue, releases,
waives, acquits, and forever discharges the Companies, their divisions,
Subsidiaries, affiliates, parents, members, related entities, and their
respective past or present employees, officers, directors, stockholders,
partners, investors, executives, managers, agents, attorneys, representatives,
successors and assigns, and anyone acting on their joint or several behalf
(collectively, the “Releasees”), from any and all
claims, actions, causes of action, demands, damages, suits in equity, costs,
expenses, liabilities, or other losses, of any kind whatsoever, whether known
or unknown, which exist or may exist from the beginning of time up to and
including the date of Executive’s execution of this Agreement or which in any
way arise from, grow out of, or are related to events or circumstances that
occurred on or prior to the date of Executive’s execution of this Agreement,
including but not limited to any matter related to Executive’s employment with
the Companies and their Subsidiaries or the termination thereof.  By way of example only and without limiting
the immediately preceding sentence, as used herein the terms “claims,” “causes
of action” and “demands” shall include, and Executive agrees that neither
Executive nor Executive’s representative(s) shall file, or cause to be
filed, a charge, complaint, lawsuit, or any other claim against the Releasees
with respect to, (a) any federal, state, or local employment law or
statute, including, but not limited to Title VII of the Civil Rights Act of
1964, as amended, the Civil Rights Act of 1991, the Americans with Disabilities
Act, the Age Discrimination in Employment Act of 1967, as amended (including
the Older Workers Benefit Protection Act), the Family and Medical Leave Act of
1993, the Worker Adjustment Retraining and Notification Act or the Employee
Retirement Income Security Act, or (b) any claim based on the existence or
breach of oral or written contracts of employment, the negligence of any
Releasee, negligent or intentional misrepresentations, promissory estoppel, interference
with contract or employment, defamation or damage to business or personal
reputation, assault and battery, negligent or intentional infliction of
emotional distress, unlawful discharge in violation of public policy,
discrimination, retaliation, wrongful discharge, sexual harassment,
whistleblowing, breach of implied covenant of good faith, fraud, stock fraud,
equity, tort, intellectual property, personal injury, spoliation of evidence,
wage and hour law, statute or common law, claims for severance pay, claims
related to equity compensation and/or fringe benefits, claims for attorneys’
fees, vacation pay, debts, accounts, compensatory damages, punitive or
exemplary damages or liquidated damages. 
Notwithstanding the foregoing, Executive shall not be deemed to have
released any of the following 

 

5

 

claims: (i) claims for indemnity or contribution or claims for
coverage under any D&O insurance policies maintained by the Companies or
their Subsidiaries, in each case, in respect of claims asserted against
Executive in his capacity as an employee, director or officer of the Companies
or their Subsidiaries, (ii) claims for vested retirement benefits or
continued welfare coverage pursuant to COBRA, (iii) claims based on events
occurring after this agreement is executed by Executive or (iv) payments
required to be made under this Agreement . 
Except as provided herein and Section 23 of the Employment
Agreement (which shall apply in accordance with its terms), Executive
acknowledges and agrees that the Companies and their Subsidiaries have no
further obligations or commitments to Executive under the Employment Agreement.

 

5.             Continuing
Covenants.  In consideration of
Holdings’ promise to provide the benefits set forth in Section 3(b)-3(i),
Executive hereby agrees to comply with and be subject to Section 11 of the
Employment Agreement (as modified herein) and that Section 11(e) of
the Employment Agreement shall apply to any violation of this Section 5 or
Section 11 of the Employment Agreement (as modified herein).  Executive hereby acknowledges that the
enforcement of the provisions of this Section 5 and Section 11 of the
Employment Agreement (as modified herein) may potentially interfere with
Executive’s ability to pursue a proper livelihood.  Executive recognizes and agrees that the
enforcement of this Agreement is necessary to ensure the preservation,
protection and continuity of the business, trade secrets and goodwill of Holdings
and Lerner.  Executive agrees that, due
to the proprietary nature of Holdings’ business, the restrictions set forth in
this Agreement are reasonable as to time and scope.  Executive hereby acknowledges that he has
been advised to consult with an attorney before executing this Agreement and
that he has done so or, after careful reading and consideration, he has chosen
not to do so of his own volition.

 

6.             Future
Cooperation.

 

(a)  Executive agrees to fully and
completely cooperate with the Companies, their advisors, and their legal
counsel with respect to any litigation that is pending against either or both
of the Companies and any claim or action that may be filed against either or
both of the Companies in the future, in each case, to the extent Executive has
knowledge relevant to such action.  Such
cooperation shall include making Executive available at reasonable times and
places, taking into account Executive’s personal and business schedule, for
interviews, reviewing documents, testifying in a deposition or a legal or
administrative proceeding, and providing advice to either or both of the
Companies in preparing defenses to any pending or potential future claims
against either or both of the Companies.

 

(b)  If Executive is legally required to
appear or participate in any proceeding that involves or is brought against
either or both of the Companies, Executive agrees to disclose to the Companies
no later than ten business days prior to the date that such disclosure is to be
made, unless compelled by law or the written advice of engaged legal counsel to
do otherwise, what Executive plans to say or produce and to otherwise cooperate
fully with the Companies.

 

(c)  Executive agrees to reasonably
cooperate with Holdings as necessary for Holdings to comply with its public
disclosure requirements.

 

6

 

(d)  Executive shall be entitled to be
reimbursed by the Companies for all reasonable and necessary out-of-pocket
expenses actually incurred by him during the period beginning on the first day
of the Salary Continuation Period and ending on the last date with respect to
which Executive discharges his obligations under (a), (b) or (c) of
this Section 6 as a result of the performance of his obligations under Section 6
of this Agreement; provided that such expenses over U.S. $100 must be
pre-approved by the Companies.

 

7.             Nondisparagement;
No Communication Regarding the Companies. 
Executive agrees that he shall not make any malicious, disparaging, or
defamatory statements regarding the Companies, their Subsidiaries, any of their
affiliates, directors, stockholders, members, officers or employees, or any of
their businesses or products, or any aspect of Executive’s prior employment
therewith; provided that Holdings shall not withhold any payments or benefits
required to be made under this Agreement because of a violation of this Section 7
unless Executive materially or intentionally violates this Section 7 and
such violation results in demonstrable damage to Holdings or its
Subsidiaries.  Nothing herein shall prevent Executive from making truthful statements
required to be made pursuant to applicable law.

 

8.             No
Admission of Wrongful Conduct. 
Executive hereby acknowledges and agrees that, by the Companies’
entering into this Agreement, neither the Companies nor the Releasees are
admitting any unlawful or otherwise wrongful conduct or liability to Executive
or Executive’s heirs, executors, administrators, assigns, agents, or other
representatives.

 

9.             Executive
Acknowledgment.  EXECUTIVE
UNDERSTANDS AND AGREES THAT EXECUTIVE MAY BE WAIVING SIGNIFICANT LEGAL
RIGHTS BY SIGNING THIS AGREEMENT, AND ACKNOWLEDGES THAT EXECUTIVE IS EXECUTING
THIS AGREEMENT VOLUNTARILY AND OF EXECUTIVE’S OWN FREE WILL AND THAT EXECUTIVE
FULLY UNDERSTANDS THE TERMS OF THIS AGREEMENT. 
Further, Executive acknowledges that Executive has had an opportunity to
review this Agreement fully and to discuss its terms with legal counsel or any
other advisor of Executive’s choice prior to its execution.

 

10.           Ownership
of Claims; No Filing of Claims. 
Executive represents, warrants and agrees that Executive has not
heretofore assigned or transferred, or purported to assign or transfer, to any
person, any claim or portion thereof or interest therein.  Executive further represents and warrants
that Executive does not presently have on file any claims, charges, grievances
or complaints against any of the Releasees in or with any administrative,
state, federal or governmental entity, agency, board or court, or before any
other tribunal or panel or arbitrators, public or private, based upon any
actions or omissions by the Releasees occurring prior to the Effective Date.

 

11.           No
Attorneys’ Fees or Costs.  Executive
and the Companies acknowledge and agree that the parties to this Agreement
shall not be required to pay any attorneys’ fees or any other costs incurred by
any other party to this Agreement in connection with the negotiation and
execution of this Agreement.

 

12.           Arbitration.  Any dispute regarding any aspect of this
Agreement, including its formation, or any act which would violate any
provision in this Agreement (other than disputes with respect to alleged
violations of the Covenants and Sections 5, 6 and 7 of this Agreement, which
shall 

 

7

 

be governed by Section 11(e) of the Employment Agreement)
shall be resolved in accordance with Section 18 of the Employment
Agreement.

 

13.           No
Representations.  The parties hereto
represent and warrant that they are not relying on statements, representations
or promises made by the other party or its agent(s) except as specifically
set forth herein.

 

14.           Successors.  This Agreement shall be binding upon, inure
to the benefit of, and be enforceable by the parties hereto and their
respective successors and assigns.

 

15.           Governing
Law; Jurisdiction.  This Agreement is
made and entered into in the State of New York, and shall in all respects be
interpreted, enforced and governed by and under the internal laws of the State
of New York, and Holdings and Lerner shall require any successor or assign to
expressly assume and agree to perform this Agreement in the same manner and to
the same extent that Holdings and/or Lerner, as applicable, would be required
to perform it if no such succession or assignment had taken place.

 

16.           Counterparts
and Facsimile Execution.  This
Agreement may be executed and delivered (a) in one or more counterparts,
each of which shall be deemed to be an original, but all of which together
shall constitute one and the same instrument, and/or (b) by facsimile, in
which case (i) the instrument so executed and delivered shall be binding
and effective and deemed an original for all purposes, and (ii) the
parties shall nevertheless exchange substitute hard copies of such facsimile
instruments as soon thereafter as practicable (but the failure to do so shall
not affect the validity of the instruments executed and delivered by
facsimile).

 

17.           Entire
Agreement.  This Agreement
constitutes the entire agreement among the Companies and Executive and this
Agreement shall supersede any prior written or oral agreements, understandings,
or arrangements between the parties regarding any of the items addressed in the
sections above, except for the terms of the Employment Agreement, which
agreement shall remain in full force and effect, and any benefit plan document
that shall continue to be governed by the terms and conditions of said
document, including, without limitation, any medical or dental insurance plan,
any stock option plan or any other vested retirement benefits or continued
welfare coverage.  Any modifications to
this Agreement must be done in writing and signed by Executive and Holdings.

 

18.           Miscellaneous.

 

(a)  Should any provision of this Agreement
be declared or determined by any court to be illegal or invalid, the validity
of the remaining parts, terms, or provisions shall not be affected thereby and
said illegal or invalid part, terms, or provisions shall be deemed not to be a
part of this Agreement.

 

(b)  As used in this Agreement, the
masculine, feminine or neuter gender, and the singular or plural number, shall
be deemed to include the others whenever the context so indicates or requires.

 

8

 

[REMAINDER OF PAGE
INTENTIONALLY LEFT BLANK.]

 

9

 

 

IN
WITNESS WHEREOF, Executive and duly authorized representatives of Holdings and
Lerner hereby certify that they have read this Agreement in its entirety and
voluntarily executed it in the presence of competent witnesses, as of the date
set forth under their respective signatures.

 

 

 

	
  EMPLOYEE

  	
   

  	
  NEW YORK & COMPANY, INC.

  
	
   

  	
   

  	
   

  
	
  /s/ Ronald W. Ristau

  	
   

  	
  /s/ Sandra Brooslin Viviano

  
	
  Ronald W. Ristau

  	
   

  	
  Sandra Brooslin Viviano

  
	
   

  	
   

  	
  Executive Vice President, Human Resources

  
	
   

  	
   

  	
   

  
	
  November 19, 2008

  	
   

  	
  November 19, 2008

  
	
  Date

  	
   

  	
  Date

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  LERNER NEW YORK, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ Sandra Brooslin Viviano

  
	
   

  	
   

  	
  Sandra Brooslin Viviano

  
	
   

  	
   

  	
  Executive Vice President, Human Resources

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  November 19, 2008

  
	
   

  	
   

  	
  Date

  

 

 

EXHIBIT A

 

Ann
Taylor Stores Corporation

Ashley
Stewart Ltd.

Cato
Corp.

Cache, Inc.

Charming
Shoppes, Inc.

Chico’s
FAS, Inc.

Christopher &
Banks Corporation

Coldwater
Creek Inc.

Deb
Shops, Inc.

The
Dress Barn, Inc.

Express
LLC

Forever
21, Inc.

The
Gap, Inc.

J.
C. Penney Company, Inc.

J.
Crew Group, Inc.

The
J. Jill Group, Inc.

Liz
Claiborne, Inc.

Macy’s, Inc.

Mother’s
Work, Inc.

Sears
Holdings Corporation

The
Talbots, Inc.

Target
Corporation

The
TJX Companies, Inc.

Zara
International, Inc.

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