Document:

exv10w104

Exhibit 10.104

THE TALBOTS, INC.

CHANGE IN CONTROL AGREEMENT

Benedetta I. Casamento

EVP/Finance

c/o The Talbots, Inc.

One Talbots Drive

Hingham, Massachusetts 02043

Dear Benedetta:

     This agreement (the “Agreement”) reflects our mutual understanding regarding payments to be
made to, and benefits to be received by, you in the event your employment with The Talbots, Inc., a
Delaware corporation (including its subsidiaries, the “Company”), is terminated by the Company
within twelve (12) months following a Change in Control. This Agreement shall become effective on
your employment commencement date (April 6, 2009). The capitalized termed used in this Agreement
that are not otherwise defined herein shall have the meanings given to such terms in Appendix
A hereto, incorporated herein by this reference and hereby made a part hereof.

     1. Termination after Change In Control. In the event that the Company
terminates your employment Without Cause within twelve (12) months after the occurrence of a Change in Control,
then the following shall occur:

	 	(a)	 	The Company shall pay to you on the effective date of such termination: (i)
salary for services rendered up to and including the date of termination, (ii) any and
all compensation to which you may be entitled as of the date of termination pursuant to
The Talbots, Inc. 2003 Executive Stock Based Incentive Plan (the “Plan”) or any other
compensation or benefit plan to the extent permitted by such plans, and (iii)
reimbursement for outstanding ordinary and reasonable expenses incurred by you in
connection with the performance of your duties for the Company up to and including the
date on which your employment is terminated;
	 
	 	(b)	 	The Company shall pay to you, within thirty (30) days after the effective date
of such termination, an amount of severance pay equal to one times the sum of:

	 	(i)	 	your annual base salary at the rate in effect on the date of
such termination, and
	 
	 	(ii)	 	your “target” annual cash incentive bonus as then established
for you and determined in accordance with the applicable annual cash incentive
bonus arrangement in place from time to time (provided that the target annual
cash incentive bonus shall be no less than 75% of your annual base salary).

     You shall continue to participate, on the same terms and conditions, in any benefit programs
of the Company in which you participated immediately prior to such termination (including, without
limitation, as applicable, any disability insurance benefit program, any medical insurance program,
and dental insurance program, and any life insurance program) from time of such termination until
the earlier

 

 

of: (i) the end of the one (1) year period beginning from the effective date of the termination of
your employment, or (ii) such time as you are eligible to be covered by a comparable program of a
subsequent employer. You hereby agree to notify the Company promptly if and when you begin
employment with another employer and if and when you become eligible to participate in any pension
or other benefit plans, programs or arrangements of another employer.

     2. Assignment. None of the parties hereto shall, without the consent of
the other, assign or transfer this Agreement or any rights or obligations hereunder. This Agreement and all of the
provisions hereof shall be binding upon, and inure to the benefit of, the parties hereto, and their
successors (including successors by merger, consolidation or similar transactions), permitted
assigns, executors, administrators, personal representatives, heirs and distributees.

     3. Miscellaneous.

     (a) Entire Agreement. This Agreement contains the entire understanding between and
among the parties hereto with respect to the subject matter hereof and supersedes any prior or
contemporaneous understandings and agreements, written or oral, between us respecting such subject
matter; provided, however, that this Agreement shall not be construed to impair or
otherwise adversely affect the grant of any Award (as such term is defined in the Plan) made to you
under the Plan or the related grant agreements, the Severance Agreement, or the Offer Letter,
between the Company and you and all of which remain in full force and effect. For as long as this
Agreement is in effect, to the degree there is any conflict between the severance payments and
benefit provisions to which you are then entitled under this Agreement and those of any other
written agreement which continues to be in effect between the Company and you, such conflict shall
be resolved by the Company in good faith by affording you the more favorable severance payments and
benefits contained in any such agreement. Notwithstanding the foregoing, nothing herein relieves
you from the obligation to comply with the restrictive covenants of all such agreements or from the
consequences of noncompliance therewith regardless under which agreement the severance payments and
severance benefits may be deemed to have been made. Furthermore, for purposes of clarification
only, if you receive severance pay and benefits under one agreement, you shall not be entitled to
severance pay or benefits under any other agreement, plan or arrangement.

     (b) Governing Law. This Agreement shall be governed by and construed in accordance
with the laws of The Commonwealth of Massachusetts applicable to contracts made and to be wholly
performed in that state.

[Signature page follows.]

2

 

     If this letter sets forth our agreement on the subject matter hereof, kindly sign, date and
return to The Talbots, Inc. the enclosed copy of this letter which will then constitute our binding
agreement on the subject.

	 	 	 	 	 
	 	Sincerely,

THE TALBOTS, INC.

 	 
	 	By:  	/s/ Michael Scarpa
 	 
	 	 	Michael Scarpa 	 
	 	 	Chief Operating Officer and
Chief Financial Officer 	 
	 

	 	 	 	 	 
	Executive:

 	 	 
	/s/ Benedetta I. Casamento
 	 	 
	Name:  	Benedetta I. Casamento 	 	 
	Title:
Date:   	EVP/Finance

March 30, 2009 	 	 

3

 

	 	 	 	 	 

Appendix A

     Definitions. As used in the Change in Control Agreement.

	 	(a)	 	“Change in Control” shall mean (i) the acquisition (including as a result of a
merger) by any “person” (as such term is used in Sections 3(a)(9), 13(d) and 14(d) of
the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or persons
“acting in concert” (which for purposes of this Agreement shall include two (2) or more
persons voting together on a consistent basis pursuant to an agreement or understanding
between them to act in concert and/or as a “group” within the meaning of Sections
13(d)(3) and 14(d)(2) of the Exchange Act), other than the Company or any of its
subsidiaries, and other than AEON (U.S.A.), Inc. or any of its subsidiaries or
“affiliates” (as such term is defined in Rule 12b-2 under the Exchange Act)
(collectively, an “Acquiring Person”), of beneficial ownership (within the meaning of
Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the
Company representing more than 25 percent of the combined voting power of the then
outstanding securities of the Company entitled to then vote generally in the election
of directors of the Company, and no other stockholder is the beneficial owner (within
the meaning of Rule 13d-3 under the Exchange Act), directly or indirectly, of a
percentage of such securities higher than that held by the Acquiring Person; or (ii)
individuals, who, as of the effective date of this Agreement (the “Effective Date”),
constitute the Board (the “Incumbent Board”) cease for any reason to constitute at
least a majority of the Board; provided that any individual becoming a director
subsequent to the Effective Date, whose election or nomination for election by the
Company’s stockholders was approved by a vote of at least two-thirds of the directors
then comprising the Incumbent Board shall be considered as though such individual were
a member of the Incumbent Board, but excluding as a member of the Incumbent Board, any
such individual whose initial assumption of office is in connection with an actual or
threatened election contest relating to the election of the directors of the Company
(as such terms are used in Rule 14a-11 of Regulation 14A under the Exchange Act) and
further excluding any individual who is an “affiliate”, “associate” (as such terms are
defined in Rule 12b-2 under the Exchange Act) or designee of an Acquiring Person having
or proposing to acquire beneficial ownership (within the meaning of Rule 13d-3 under
the Exchange Act), directly or indirectly, of securities of the Company representing
more than 10 percent of the combined voting power of the then outstanding securities of
the Company entitled to then vote generally in the election of directors of the
Company.
	 
	 	(b)	 	“Without Cause” shall mean termination by Talbots of your employment as a
result of an event or condition other than (i) your death, (ii) your inability
substantially to perform your employment duties as a result of physical or mental
illness or injury for a continuous period of at least six months (any dispute as to
your incapacities shall be resolved by an independent physician, reasonably acceptable
to you or your legal representative and the Company’s Board of Directors, whose
determination shall be final and binding upon you and the Company), (iii) any material
breach by you of this Agreement or any other agreement to which you and the Company are
both parties (which is not cured within 45 days following written notice from the
Company), (iv) any act or omission to act by you which may have a material and adverse
effect on the Company’s business or on your ability to perform services for the
Company, including, without limitation, the commission of any crime involving moral
turpitude or any felony, or (v) any material misconduct or material neglect of duties
by you in connection with the business or affairs of the Company.

4exv10w105

Exhibit 10.105

[AEON CO., LTD. LETTERHEAD]

April 9,
2009

The Talbots Inc.

1 Talbots Drive

Hingham, MA 02043

Att: Trudy F.Sullivan

        President and Chief Executive Officer

			
	Re: Support Letter (Financial)

We will support Talbots management (“T”)in connection with certain guarantees for T’s borrowings
discussed below,

Support to T in relation to T’s borrowing from the financial institutions

	1.	 	We have already provided guarantee for T’s borrowings from the financial institutions (the
amount of whose balance is US$265 million as of April 1, 2009). We agree to continue to
provide guarantee for T’s new borrowings to refinance certain borrowings due on or before
April 16, 2010 out of the existing borrowings secured by our guarantee.

As of 2009/April/1

	 	 	 	 	 	 	 	 	 
	Bank	 	Principal	 	End
	MizuhoCB
	 	 	75	 	 	 	2009.12.29	 
	MizuhoCB
	 	 	18	 	 	 	2010.04.17	 
	MizuhoCB
	 	 	18	 	 	 	2010.01.25	 
	Mitsu Sumitomo
	 	 	50	 	 	 	2009.12.31	 
	Mitsu Sumitomo
	 	 	16	 	 	 	2010.01.28	 
	Norin Chuo Kinko
	 	 	25	 	 	 	2010.01.04	 
	Norin Chuo Kinko
	 	 	28	 	 	 	2009.04.17	 
	Mitsubishi Tokyo UFJ
	 	 	15	 	 	 	2009.12.31	 
	Mitsubishi Tokyo UFJ
	 	 	20	 	 	 	2012.04.13	 
	Bank Borrowing Total
	 	 	265	 	 	 	 	 

	2.	 	Should any financial institution fail to agree to refinance any of the existing borrowings
due on or before April 16, 2010, or if any other condition occurs that Aeon to make a payment
under the guarantee to either T or any financial

 

 

	 	 	institution, then we agree to make a loan to T due on after
April 16, 2010 to avoid lack of T’s
financial resources to be caused by such failure of refinancing within the limits of our
guarantee and on or before April 16, 2010.

Very truly yours,

Aeon Co.,Ltd.

	 	 	 	 	 
	By :

	 	  /s/ Masaaki Toyoshima
 

	 	 
	 

	 	Masaaki Toyoshima	 	 
	 

	 	Vice President	 	 
	 

	 	Chief Financial Officer	 	 

 

 

[AEON CO., LTD. LETTERHEAD]

April 9, 2009

The Talbots, Inc.

1 Talbots Drive

Hingham, MA 02043

Att: Trudy F. Sullivan

            President and Chief Executive Officer

			
	Re:	 	Letter of Support

Dear Trudy:

     This letter will confirm Aeon’s support for your FY09 working capital initiatives, including
those efforts underway and planned by your internal supply chain group toward the improvement of
the Company’s FY09 cash flows by moving merchandise vendor payable terms to 60 days on a uniform
basis.

     We understand from our discussions with you that negotiations with these vendors to date have
resulted in approximately 60% of those vendors, on a weighted average basis, already in agreement
for payment terms of 60 days. We further understand that you are actively working with the balance
of your merchandise vendor community to accomplish the same arrangements.

     Further, we also understand that you are presently in active discussions and have initiated a
Letter of Intent with Li & Fung Limited (“LFL”) toward the exploration of an arrangement for LFL to
become your primary global sourcing agent, which would include their ability to move all your
merchandise vendors to this uniform 60 day payment term criteria.

     This will further confirm that to the extent Talbots efforts fall short of achieving the
targeted $25M cash flow improvement for Fall 2009 merchandise payables by the movement of the
vendors to the 60 day payment terms, Aeon will use its commercially reasonable efforts to provide
the necessary financial support (via secured or unsecured loans) or guarantees (up to this $25M
target) to make up any deficiency between the amount of any working capital cash flow improvement
actually achieved and this $25M goal.

     We are confident that these efforts with the vendor community and the other cost saving
initiatives underway at Talbots will allow the Company to achieve its FY09 operating and working
capital goals.

Very truly yours,

Aeon Co., Ltd.

	 	 	 	 	 
	By:

	 	  
/s/ Masaaki Toyoshima
 

	 	 
	 

	 	Masaaki Toyoshima	 	 
	 

	 	Vice President	 	 
	 

	 	Chief Financial Officer

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