Document:

EXHIBIT
10.52

 

Amendment No.1 to
Employment Agreement

Dated February 27, 2007 with Tara Poseley.

 

February 27, 2007

 

Tara Poseley

Disney Store North
America

443 N. Raymond Avenue

Pasadena, California
91105

 

Dear Tara:

 

This letter set forth the
terms of our agreement modifying your Employment Agreement dated July 28,
2006 (the “Agreement”).  Capitalized
terms not otherwise defined herein shall have the meanings ascribed to them
under the Agreement.

 

With respect to Section 4.05
of the Agreement, the parties agree that the Employer shall continue to provide
housing in the Los Angeles, California area to you and your family for the
period of January 1, 2007 through May 31, 2007 (“Additional Housing
Allowance”), and that the total amount for the Additional Housing Allowance,
including the tax gross up, shall not exceed Seventy-Five Thousand Dollars
($75,000).  The parties acknowledge and
agree that, in the event your employment is terminated for the reasons set
forth in Section 4.05 of the Agreement, the total relocation expenses that
you shall pay to the Employer within thirty (30) days of your termination shall
include the Additional Housing Allowance.

 

Except as modified by
this letter, all other terms of the Agreement shall remain in full force and
effect.

 

If the foregoing
accurately sets forth the terms of our agreement, please return the signed
letter to my attention at your earliest convenience.

 

Sincerely,

 

	
  /s/  Sue Riley

  	
   

  
	
  Sue Riley

  	
   

  
	
  Executive Vice
  President

  	
   

  
	
   

  	
   

  
	
  Agreed and accepted on
  this

  	
   

  
	
        
  day of February, 2007

  	
   

  
	
   

  	
   

  
	
  /s/ Tara Poseley

  	
   

  
	
  Tara PoseleyEXHIBIT
10.53

 

Amendment No. 2
to Employment Agreement

 Dated December 12, 2007 with Tara
Poseley.

 

December 12, 2007

 

 

Tara Poseley

President – Disney Store

c/o The Children’s Place

443 South Raymond Avenue

Pasadena, California
91105

 

Dear Tara:

 

The Children’s Place
Retail Stores, Inc. (the “Company”) is offering you certain payments and
benefits in the event your employment is terminated following a Change in
Control as that term is defined in and as set forth in the Change in Control
Severance Agreement (“CIC Agreement”), attached hereto as Exhibit A.  In consideration of the foregoing, the
parties agree that your Employment Agreement dated July 28, 2006 (the “Agreement”)
shall be amended as set forth in this letter agreement.  Capitalized terms not otherwise defined
herein shall have the meanings ascribed to them in the Agreement.

 

1.                                       The parties agree that Section 5.03
of the Agreement shall be amended in its entirety as follows:

 

Executive may, at any
time during the Employment Period by notice to the Employer, terminate
Executive’s employment under this Agreement “for Good Reason” effectively
immediately.  For purposes of this Section 5.03,
“Good Reason” means: (a) relocation of Employer’s headquarters outside the
New York City metropolitan area; (b) a demotion of Executive’s position, a
material, adverse change in Executive’s duties and responsibilities, or an
adverse change in Executive’s reporting as set forth in Section 3.02; (c) Employer’s
failure to pay any amounts or benefits when due, which failure is not cured
within ten (10) business days after notice to Employer; or (d) Employer’s
material breach of this Agreement which breach is not cured within ten (10) business
days after notice to Employer.

 

2.                                       Without limiting the foregoing, Executive
(1) acknowledges and agrees that any termination of Executive’s employment
by Executive because Ezra Dabah

 

 

no longer holds
the position of Chief Executive Officer of the Company does and shall not
constitute “Good Reason” under the Agreement; and (2) waives any claims
that Executive is entitled to any of the payments set forth in Section 6.01
in the event Executive terminates her employment under the Agreement because
Ezra Dabah no longer holds the position of Chief Executive Officer of the
Company.

 

3.                                       The parties also agree that Section 8
of the Agreement shall be deleted in its entirety.

 

Except as modified by
this letter, all other terms of the Employment Agreement shall remain in full
force and effect.  In the event of an
inconsistency between the Agreement and the CIC Agreement, the terms of the CIC
Agreement shall apply.

 

Please return the signed
letter to my attention if the above accurately sets forth the terms of our
agreement.

 

Sincerely,

 

	
  /s/Charles Crovitz

  	
   

  
	
  Charles Crovitz

  	
   

  
	
  Interim Chief Executive
  Officer

  	
   

  
	
   

  	
   

  
	
  Agreed and accepted on
  this

  	
   

  
	
        
  day of December, 2007

  	
   

  
	
   

  	
   

  
	
  /s/Tara Poseley

  	
   

  
	
  Tara PoseleyEXHIBIT
10.54

 

Amendment No.3 to
Employment Agreement

Dated January 24, 2008 with Tara Poseley.

 

January 24, 2008

 

 

Tara Poseley

President – Disney Store

443 South Raymond Avenue

Pasadena, California
91105

 

Dear Tara:

 

This
letter set forth the terms of our agreement modifying your Employment Agreement
dated July 28, 2006 (the “Agreement”). 
The parties agree that Section 6.01 of the Agreement shall be
amended in its entirety as follows:

 

Subject to the provisions of
Sections 6.02 and 9.08, if Executive’s employment hereunder is terminated by
Employer pursuant to Section 5.01 or by Executive pursuant to Section 5.03
at any time thereafter, Executive shall be entitled to continuation of her Base
Salary for a period of eighteen (18) months following such termination (“Severance
Payment”), which Severance Payment shall be paid to Executive in equal
consecutive bi-weekly installments with the first such installment paid on the
first day of the month next following the effective date of termination of
Executive’s employment hereunder.  In
addition, in the event Executive elects to continue health benefit coverage
through COBRA following the termination of Executive’s employment, the Company
agrees to waive the applicable premium cost that Executive would otherwise be
required to pay for continued group health benefit coverage for a period of
eighteen (18) months following the effective date of termination of Executive’s
employment or to the extent permissible under applicable law; provided,
however, that said benefit shall be reduced to the extent of the receipt of
substantially equivalent coverage by Executive from any successor
employer.  To the extent necessary to
comply with the restriction of Section 409A(a)(2)(B) of the Internal
Revenue Code of 1986, as amended (“Code”) concerning payments to “specified
employees,” in no event shall any portion of the Severance Payment be made
earlier than the first business day of the seventh month following Executive’s
Termination Date (“Delayed Payment Date”). 
Executive shall be a “specified employee” for the 12-month period
beginning on the first day of the fourth month following each “Identification
Date” if Executive is a “key

 

 

employee” (as defined in Section 416(i) of
the Code without regard to Section 416(i)(5) thereof) of Employer at
any time during the 12-month period ending on the Identification Date.  For purposes of this Agreement, the
Identification Date shall be December 31. 
Receipt of the Severance Payment shall be subject to execution of a
separation agreement and general release (the terms of which shall be
consistent with this Agreement) in a form reasonably satisfactory to Employer.

 

Except
as modified by this letter agreement and the letter agreement dated December 12,
2007, all other terms of the Employment Agreement shall remain in full force
and effect.

 

Please
return the signed letter to my attention if the above accurately sets forth the
terms of our agreement.

 

Sincerely,

 

	
  

  	
   

  
	
  Charles
  Crovitz

  
	
  Interim
  Chief Executive Officer

  
	
   

  
	
  Agreed
  and accepted on this

  
	
        
  day of January, 2008

  
	
   

  
	
  /s/
  Tara Poseley

  	
   

  
	
  Tara
  PoseleyEXHIBIT 10.55

 

 

 

EMPLOYMENT
AGREEMENT

 

DATED SEPTEMBER
26, 2007

 

BETWEEN

 

THE CHILDREN’S
PLACE RETAIL STORES, INC.

 

AND

 

CHARLES K. CROVITZ

 

 

EMPLOYMENT
AGREEMENT

 

EMPLOYMENT
AGREEMENT, dated as of September 26, 2007 (this “Agreement”), between CHARLES K. CROVITZ (“Executive”) and
THE CHILDREN’S PLACE RETAIL STORES, INC., a Delaware corporation (“Employer”).

 

WHEREAS,
Employer and Executive entered into a certain Term Sheet dated as of November 20,
2007 (“Term Sheet”); and

 

WHEREAS,
this Agreement replaces and supersedes the Term Sheet in its entirety;

 

NOW,
THEREFORE, in consideration of the premises and the mutual covenants and
agreements herein contained, the parties agree as follows:

 

SECTION 1

 

EMPLOYMENT OF
EXECUTIVE

 

Employer hereby agrees to continue to employ
Executive, and Executive hereby agrees to continue in the employ of Employer,
upon the terms and conditions hereinafter set forth.

 

SECTION 2

 

EMPLOYMENT AND
CONSULTING PERIOD

 

2.01.        The
term of Executive’s employment under this Agreement (the “Employment Period”) commenced
on September 26, 2007 (the “Commencement Date”) and shall continue until the
earlier of (i) February 2, 2009 or (ii) such other time as a
permanent Chief Executive Officer (the “New CEO”) has been appointed by the
Board of Directors and commenced employment with the Company (“Full Employment
Term”), unless sooner terminated in accordance with the provisions of Section 5.

 

2.02.        Executive
shall serve as a consultant to the Company upon completion of the Employment
Period for a minimum period of two calendar months under this Agreement (“Consulting
Period”) following termination of Executive’s employment for any reason
hereunder, unless such termination is (i) for Cause, (ii) as a result
of Executive’s death or Disability, or (iii) as a result of Executive’s
termination of his employment without Good Reason before the end of the Full
Employment Term.

 

SECTION 3

 

DUTIES

 

3.01.        Generally.  During the Employment Period, Executive (i) shall
be employed as Interim Chief Executive Officer of Employer (“Interim CEO”), (ii) shall

 

 

devote all of his business time and attention to the
business and affairs of Employer and other enterprises controlled by, or under
common control with, Employer (collectively, the “Company”), and (iii) shall
use his best efforts, skills and abilities in the diligent and faithful
performance of his duties and responsibilities hereunder.  As Interim CEO, Executive shall have the
duties in the management of the Company’s business and affairs and shall have
the authority and responsibilities customarily held by a chief executive
officer of a public company of similar size and complexity (e.g. number of
employees, stores, having multiple divisions, and revenues between $2 Billion
and $5 Billion), including the role, authority and responsibilities of a
principal executive officer of Employer for purposes of the pertinent filings
and submissions of Employer under the Securities Exchange Act of 1934, as
amended (the “Exchange Act”)); provided, however,  (i) Executive’s reporting
responsibilities shall be as provided in subsection 3.02 below and (ii) all
executive officers of the Company shall report to Executive, except that the
Executive Vice President, Finance and Administration shall report jointly to
Executive and the Board of Directors of Employer.  Notwithstanding the foregoing, Executive shall
have the right to (i) engage in personal investment activities for himself
and his family and (ii) engage in charitable and civic activities,
provided the outside activities set forth in (i) and (ii) hereof do
not materially interfere with Executive’s performance of his duties and
responsibilities hereunder.  Executive
shall continue to serve on the Company’s Board of Directors and Executive shall
be subject to the limitations set forth in the Company’s Corporate Governance
Guidelines applicable to service of the Company’s Chief Executive Officer as an
officer or director of any other business corporation or as a general partner
of any partnership.

 

3.02.        Reporting.
 During the Employment Period and unless
Executive’s employment with the Company otherwise terminates in accordance with
Section 5 hereof, Executive shall report solely to the Board of Directors
of Employer.  In reporting to the Board
of Directors of Employer, Executive shall on a regular basis report to the
Chair of the Board of Directors.

 

3.03.        Location
of Executive’s Activities; Travel. 
Executive’s principal place of business in the performance of his duties
and obligations under this Agreement shall be in the New York metropolitan
area, which includes Secaucus, New Jersey. 
For so long as Employer’s headquarters are located in the New York City
metropolitan area, Executive’s principal place of business shall be located at
such headquarters.  Notwithstanding the foregoing
provisions of this subsection, Executive will travel to the Company’s offices
in Pasadena, California, Hong Kong and the Peoples Republic of China, as deemed
necessary by the Chairman of the Board, to perform his duties and
responsibilities set forth in Section 3.01 and shall engage in such other travel
and spend time in other places as may be necessary or appropriate in
furtherance of his duties hereunder.

 

3.04.        Compliance
with Company Policies.  During the
Employment Period, Executive having obligations of both a member of senior
management and as a member of the Board of Directors will be subject to all of
the written policies, rules and regulations applicable to senior
executives of Employer or to members of the Board of 

 

2

 

Directors and will comply with all directions and
instructions of the Board of Directors of Employer.

 

3.05.        Consulting
Services.  During the first month of
the Consulting Period, Executive will serve as a consultant with responsibility
for assisting in the transition of his responsibilities under Section 3.01
hereof to the New CEO and will devote substantially all of his business time
and attention to the business and affairs of the Company.  During the second month of the Consulting
Period, Executive will continue his responsibilities under this subsection 3.05
but he shall not be obligated to devote more than one half of his business time
and attention to the business and affairs of the Company in furtherance of his
obligations under this Section 3.05. 
Executive shall continue to be provided with a suitable office and
administrative assistant during the Consulting Period.

 

SECTION 4

 

COMPENSATION

 

4.01.        Base
Salary and Performance Bonus.  For
all services rendered by Executive under this Agreement during and with respect
to the Employment Period, Employer shall pay to Executive, and Executive agrees
to accept (in full payment), Base Salary and Performance Bonus, all as more
fully described on Exhibit A, as well as the other benefits referred to in
subsection 4.02, 4.04, 4.05, 4.06 and 4.07 below.

 

4.02.        Minimum
Salary.  Notwithstanding any other
provision contained in this Agreement to the contrary, Employer shall pay to
Executive in all events the base salary payments set forth under Section 4.01
for a minimum of six months from the Commencement Date (“Minimum Salary”) even
if Executive’s employment with the Company ends prior to the completion of such
six month period for any reason; provided however, Executive shall not be
entitled to such Minimum Salary if Executive does not satisfy his obligations
under this Agreement for any reason other as set forth in Section 5.

 

4.03.        Vacations.  Executive
shall be entitled to four weeks vacation, which shall accrue based on the number
of days during the Employment Period actually worked by Executive and Executive
shall be entitled to take vacation at such time or times as determined by him;
provided such vacation does not unreasonably interfere with Executive’s
performance of his duties under this Agreement. 
Notwithstanding the foregoing, Executive may borrow against vacation time
that has not yet been accrued; provided, however, to the extent Executive does
not earn such vacation time, Employer shall be entitled to offset the value of
such amounts against the Minimum Salary or any other amount owed to Executive
hereunder.

 

4.04.        Equity
Awards.

 

a.             Executive
hereby agrees and acknowledges that the grant of 33,294 Restricted Shares (the “Equity
Award”) (as such term is defined in the Company’s 

 

3

 

Amended and Restated 2005 Equity Plan (the “2005
Equity Plan”) at a Fair Market Value (as defined under the 2005 Equity Plan) of
$30.035, effective as of December 10, 2007, subject to the terms of the
Restricted Stock Award Agreement dated December 21, 2007 but effective as
of December 10, 2007, a copy of which is attached hereto as Annex A, satisfies
all of the Employer’s obligations under Section C of the Term Sheet with
respect to a grant to Executive of $1,000,000 worth of Restricted Shares.  The Company shall cooperate with Executive in
connection with any “Change in Control” (as such term is defined in the 2005
Equity Plan), so that he has the opportunity, with respect to all shares
covered by this grant, to take whatever actions are necessary on a timely basis
to receive the same consideration as other stockholders receive with respect to
their shares in the Change in Control transaction.

 

b.             Executive
agrees and acknowledges that, other than as set forth in Section 4.04(a),
Executive is not eligible for participation in Employer’s plan or program for
the award of equity incentives to executives of Employer.  Nothing contained in this provision or under
this Agreement is intended to prohibit Executive from receiving compensation as
a non-employee member of the Board of Directors with respect to continued
post-employment services as a director, or to interfere in any way with his
rights to any equity grants made with respect to his services as a director
prior to the Commencement Date.  Executive
shall be entitled to compensation for services as a director immediately upon
the termination of this Agreement so long as Executive continues as a
non-employee member of the Board of Directors.

 

4.05.        Other
Benefits.  During
the Employment Period, except as otherwise specifically set forth herein,
Executive shall participate in all executive benefit plans and will be eligible
to receive and be provided with substantially the same benefits and perquisites
as are from time to time maintained by the Company.  Except as otherwise specifically provided by
a benefit plan or program established by the Company or as provided by separate
written agreement with the Company, Executive’s Base Salary shall constitute
the compensation on the basis of which the amount of Executive’s benefits under
any such plan or program shall be determined.

 

4.06.        Expense
Reimbursement and Transportation Benefits.

 

a.             Employer
shall reimburse Executive for all business expenses reasonably incurred by him
in the performance of his duties under this Agreement upon his presentation of
itemized accounts of such expenses in accordance with Employer’s procedures and
policies as adopted and in effect from time to time and applicable to its senior
executives, provided that Employer shall be under no obligation to reimburse
Executive for any such business expense presented more than 60 days after the
later of (i) termination of the Employment Period or (ii) termination
of the Consulting Period.

 

b.             In
lieu of providing exclusive personal transportation services to Executive in
the form of a personal car and driver, Employer shall make a transportation
service available to Executive that will on Executive’s request transport
Executive to the Company’s headquarters in Secaucus, New Jersey from Manhattan
and to Manhattan 

 

4

 

from Secaucus, New Jersey as needed and on a
reasonable basis.  All expenses incurred
under this subsection shall be paid directly by the Company or will be
reimbursed by the Company pursuant to Section 4.06(a).

 

4.07.        Relocation
Allowance and Related Costs.

 

a.             During
the Employment Period and the Consulting Period, Employer shall provide
Executive with (i) a temporary living allowance for an apartment selected
by Executive located in New York, New York (which has already been selected and
leased for a one-year term) in the amount of $15,500 per month, plus (ii) commissions,
security deposit and utilities related to the lease of such apartment, plus (iii) a
furniture rental allowance in the amount of $2,000 per month (such costs,
together with (i) and (ii) above, the “Rental Costs”).

 

b.             From
the Commencement Date through December 31, 2007, Employer shall reimburse
Executive for round trip airfare for two to Executive’s permanent residence
located in Martha’s Vineyard, Massachusetts on two separate occasions during
each calendar month.  From January 1,
2008 through the remainder of the Employment Period, Employer shall reimburse
Executive for round trip airfare for two to Executive’s permanent residence
located in Martha’s Vineyard, Massachusetts on one occasion during each
calendar month (“Relocation Travel Costs”).

 

c.             Employer
shall be responsible for, and hold Executive harmless against any lease
termination costs, including, but not limited to, Rental Costs incurred for
periods after termination of the Consulting Period (“Lease Termination Costs”);
provided, however, Employer shall not be liable for any such costs arising from
damage to such apartment beyond ordinary wear and tear, to the extent that
Landlord determines Executive to be responsible for such damage, and Executive
shall be solely responsible for, and if paid by the Employer, Executive shall
reimburse Employer for any costs arising from damage to such apartment beyond
ordinary wear and tear, to the extent that Landlord determines Executive to be
responsible for such damage, and has notified Executive of his responsibility
therefore, and any such amounts due from Executive shall not be treated as part
of Lease Termination Costs.

 

d.             As
soon as practicable after the end of each calendar year during the Employment
Period or the Consulting Period, the Company shall make an additional gross up
payment or payments to Executive intended to result in a net after-tax payment,
after deduction of all applicable taxes that are attributable to the inclusion
in Executive’s income for each such calendar year of (i) Rental Costs, (ii) Relocation
Travel Costs, (iii) Lease Termination Costs, and (iv) the gross up
payments made under this subparagraph (d), equal to the gross amounts paid to
Executive with respect to the items referenced in clauses (i), (ii) and (iii) above.  For this purpose, a total marginal tax rate
(intended to cover all state, federal and other taxes) of 45% shall be used.

 

4.08.        Indemnification
and D&O Liability Insurance. 
During the Employment Period and at all times thereafter, Executive
shall be entitled to coverage 

 

5

 

under the Company’s director and officer liability
insurance policy as an Executive and shall be entitled to indemnification and
fee advancement to the maximum extent permitted by law and the Company’s Amended
and Restated Certificate of Incorporation and its Amended and Restated By-laws
as in effect on the Commencement Date in respect of actions taken, or not
taken, by Executive during the Employment Period to the same extent provided
for other senior executives of the Company, including with respect to any
greater protections implemented, and coverage under policies of directors and
officers liability insurance extended, during the Employment Period, as well as
after Executive’s employment with the Company has terminated for any reason to
the same extent provided for former senior executives of the Company.

 

4.09.        Compensation
for Consulting Services.  For all
services rendered by Executive under this Agreement during and with respect to each
month of the Consulting Period, Executive shall be compensated at the same
monthly rate of Base Salary and in the same monthly amount as he is compensated
for his services pursuant to Section 4.01. 
Executive shall be entitled to a continuation of benefits under Section 4.05
to the extent such benefits may be extended under the terms and conditions of
the applicable benefit plans.

 

SECTION 5

 

TERMINATION OF
EMPLOYMENT PERIOD

 

5.01.        Termination
Without Cause.  At any time during
the Employment Period, by notice to the other, Employer or Executive may
terminate Executive’s employment under this Agreement without having any cause
therefore; provided, however, that termination by Employer
pursuant to this subsection 5.01 shall require the affirmative vote of a
majority of members of the Board of Directors. 
Such notice shall specify the effective date of termination, which shall
not be less than 30 days after the date of such notice.

 

5.02.        By
Employer For Cause.  At any time
during the Employment Period, by notice to Executive, Employer may terminate
Executive’s employment under this Agreement for “Cause” (as hereinafter
defined), effective immediately upon the giving of such notice or at such other
time as is specified in such notice; provided, however, that
termination pursuant to this subsection 5.02 shall require the affirmative vote
of a majority the Board of Directors of Employer.  In connection with any termination for Cause,
the Executive shall be given a statement of the specific reasons constituting
the grounds for termination for Cause and shall have the right to appear before
the Board (with counsel) to respond to allegations of any actions allegedly
constituting Cause prior to any termination by the Board with Cause becoming
effective and no such termination shall be effective for such purpose unless a
majority of the Board determines, in a meeting duly called for such purpose,
that Cause for such termination exists; it being understood that the foregoing
shall not prevent Board from (i) removing Executive from office or
terminating Executive’s position and services as Interim CEO at any time for
any reason, subject in the event of a termination for Cause to continued 

 

6

 

payment of salary and benefits until the Board
proceeding and requisite Board determination has occurred.  For the purposes of this Agreement, “for
Cause” means:

 

“Cause” shall mean
any of the following:

 

(i)            Executive engaging in
an act of willful misconduct that has a material adverse impact on the
reputation, business, business relationships or financial condition of the
Company;

 

(ii)           Executive’s conviction
of, or plea of guilty or nolo contendere to, a felony, or any crime involving
moral turpitude not involving a traffic offense;

 

(iii)          Executive’s willful
refusal to perform the specific lawful directives of the Board which are
consistent with the scope of Executive’s duties and responsibilities hereunder.

 

provided, however,
that no action taken by Executive in the reasonable, good faith belief that it
was in the best interests of the Company shall be treated as a basis for
termination of Executive’s employment for Cause under clause (i) above,
and no failure of Executive or the Company to achieve performance goals, alone,
shall be treated as a basis for termination of Executive’s employment for Cause
under clause (i) or (iii) above.

 

5.03.        By
Executive for Good Reason.  Executive
may, at any time during the Employment Period by notice to the Board of
Directors of Employer (delivered to the attention of the Chair of the Board),
terminate the Employment Period under this Agreement for “Good Reason”.  Executive may terminate his employment for
Good Reason by providing the Company thirty (30) days’ written notice setting
forth in reasonable specificity the event that constitutes Good Reason, within
ninety (90) days of the occurrence of such event.  During such thirty (30) day notice period,
the Company shall have the opportunity to cure (if curable) the event that
constitutes Good Reason, and if not cured within such period, Executive’s
termination will be effective upon the expiration of such cure period.  For the purposes hereof, “Good Reason” means:

 

“Good Reason” shall
mean any of the following:

 

(i)                                     Any
material breach of this Agreement by the Company (where the Company fails to
cure such breach within ten (10) business days after being notified in
writing by Executive of such breach);

 

(ii)           The diminution, without
Executive’s written consent, of Executive’s position, title, authority, duties
or responsibilities as indicated in the Employment Agreement, or the formal or
tacit appointment of any other person, whether or not an Employee of the
Company, without Executive’s written consent, to perform any material part of
such duties, or to exercise any of such responsibilities, including without
limitation, the failure of Executive to have any part of such authorities,
duties and responsibilities as are set forth in Section 3.01 and 3.02
hereof; provided, however, that 

 

7

 

another executive
may be authorized by the Board to carry out such duties and responsibilities if
Executive by reason of temporary disability is unable to perform such duties or
responsibilities.

 

(iii)          Executive not being
elected as a member of the Board by the Company’s shareholders or being removed
from the Board without cause in accordance with the Company’s bylaws; and

 

(iv)          The failure by the
Company to obtain the assumption in writing of its obligation to perform under
the Agreement by any successor to all or substantially all of the assets of the
Company.

 

5.04.        Disability.  If during the Employment Period, Executive
becomes incapable of fulfilling his obligations hereunder because of injury or
physical or mental illness, and such incapacity exists for a period of at least
120 consecutive days or for shorter periods aggregating at least 180 days
during the Term (“Disability”), Employer may, upon at least fifteen days’ prior
written notice to Executive, terminate Executive’s employment under this
Agreement.  In the event of a dispute with
respect to Executive’s Disability, whether or not he has been disabled shall be
determined by an independent physician reasonably acceptable to both Employer
and Executive or his representative.

 

SECTION 6

 

COMPENSATION
UPON TERMINATION OF EMPLOYMENT

 

6.01.        Compensation
Upon Termination Without Cause or for Good Reason.  In addition to Executive’s rights under
subsections 6.04, 6.05 and 6.06, if (A) Executive’s employment hereunder
is terminated by Employer pursuant to subsection 5.01 without Cause or (B) Executive
terminates his employment with Employer pursuant to subsection 5.03 for Good
Reason, Executive shall be entitled to the continuation of his Base Salary,
payable in accordance with the Company’s normal payroll practices for
executives, for the remainder of the Employment Period and any Performance
Bonus calculated based on the target bonus under the Employer’s Annual
Management Incentive Bonus Plan.  Payment
shall be made with respect to such Performance Bonus at the time the Performance
Bonus would otherwise have been payable to Executive under Employer’s Annual
Management Incentive Bonus Plan had Executive’s employment continued through
such time.  Payment to Executive of the
compensation provided by this subsection is subject to execution by Executive
of a general release in the form attached hereto as Exhibit B.

 

6.02.        Compensation
Upon Termination By Reason of Death or Disability or For Cause.  In addition to Executive’s rights under
subsections 6.04, 6.05, and 6.06, if Executive’s employment hereunder is
terminated by reason of Executive’s death or Disability, Executive (or his
legal representative, his estate, heirs or distributees) shall be entitled to
any amount of Base Salary theretofore earned but not yet paid, as well as any earned
but unpaid Performance Bonus with respect to any fiscal year of the Company
that has ended prior to the date of termination, and a pro rata portion of the 

 

8

 

Performance Bonus earned through the date of termination
for the fiscal year in which termination occurs.  The pro rata Performance Bonus will be
calculated in the same manner as calculated under subsection 6.01.  Payment to Executive of the compensation
provided by this subsection is subject to execution by Executive (or his legal
representative, estate, heirs or distributees) of a general release in the form
attached hereto as Exhibit B.

 

6.03.        Compensation
Upon Termination for Cause or Termination by Executive Without Good Reason.  In addition to Executive’s rights under subsections
6.04, 6.05 and 6.06, if Executive’s employment hereunder is terminated by Employer
with Cause or by Executive without Good Reason, Executive shall be entitled to
the Minimum Salary and any vested Restricted Shares.

 

6.04.        Equity
Awards Upon Termination.  Upon any
termination of Executive’s employment hereunder, Executive shall be entitled to
such rights in respect of any equity awards (including, without limitation,
awards of stock options, restricted shares, performance shares and any other
Incentive Award under the 2005 Equity Plan or any future equity incentive plan
or program of the Company) theretofore made to Executive, and to only such
rights, as are provided by the plan and award agreement pursuant to which such
equity awards have been granted to Executive (specifically including the right
to acceleration of the vesting and delivery to Executive of the Restricted
Shares.

 

6.05.        Other
Benefits Upon Termination.  Upon any
termination of Executive’s employment hereunder, Executive shall be entitled to
such rights in respect of any employee benefit plan in which Executive
participates (including, without limitation, health and life insurance coverage
and participation in retirement, savings, deferred compensation and stock purchase
plans but excluding any plan or program providing for equity awards (other than
to the extent specifically provided herein), and only to such rights, as are
provided by such plan or program or by law in the prevailing circumstances (and
to any other rights as may be provided by any other written agreement or
arrangement with the Company in respect of a termination of his employment
approved by the Board of Directors and applicable in the prevailing
circumstances).  Executive shall also
retain all of his rights under Sections 4.06(a), 4.07, 4.08 and 4.09 hereof,
notwithstanding the reason for termination of his employment.  In addition, if the Employment Period ends
before February 2, 2009, the Company shall continue to provide Executive
with the same health insurance benefits he was entitled to during his
employment, or reimburse him for the COBRA continuation expense he incurs in
continuing such coverage at his own expense.

 

6.06.        No
Other Compensation Upon Termination of Employment.  Executive shall not be entitled to any
benefit or compensation following termination of his employment hereunder
except as set forth in this Section 6.

 

6.07.        Section 409A.  Notwithstanding any provision of this
Agreement to the contrary, if, at the time of Executive’s separation from
service with the Company, 

 

9

 

he is a “specified employee” as defined in Section 409A
of the Internal Revenue Code of 1986, as amended, and one or more of the
payments or benefits received or to be received by Executive pursuant to this
Agreement would constitute deferred compensation subject to such Section 409A,
other than any payments of benefits made in reliance upon Treas. Reg. Section 1.409A-1(b)(9) (Separation
Pay Plans) or Treas. Reg. Section 1.409A-1(b)(4) (Short-Term
Deferrals)), no such payment or benefit will be provided under this Agreement
until the earlier of (A) the date which is six (6) months after his “separation
from service” for any reason, or (B) the date of his death.  The provisions of this Section 6.07
shall only apply to the extent required to avoid Executive’s incurrence of any
penalty tax or interest under Section 409A of the Code or any regulations
or Treasury guidance promulgated thereunder.

 

SECTION 7

 

EXCLUSIVITY OF
SERVICES, CONFIDENTIAL INFORMATION 

AND RESTRICTIVE COVENANTS

 

7.01.        Exclusivity
of Services; Use of Name.  During the
Employment Period and continuing through the first anniversary of the date in
which Executive ceases to be an employee of the Company (the “Covenant Period”),
Executive will not:

 

(i)            promote,
participate or engage in any business on behalf of any “Direct Competitor” (as
hereinafter defined) of the Company, whether Executive is acting as owner,
partner, stockholder, employee, broker, agent, principal, trustee, corporate
officer, director, consultant or in any other capacity whatsoever; provided,
however, that this will not prevent Executive from holding for investment
up to 1% of any class of stock or other securities quoted or dealt in on a recognized
stock exchange.  For purposes of this
Section, a “Direct Competitor” of the Company means (A) any division of
The Gap, Inc. or any person under common control with The Gap, Inc.
that is engaged in the retail sale of children’s apparel, (B) any division
of The Limited, Inc. or any person under common control with The Limited, Inc.
that is engaged in the retail sale of children’s apparel, (C) Gymboree or
Kids R Us or any Person under common control with Gymboree or Kids R Us, as the
case may be, or (D) any other Person engaged, or having the intent to
engage, (1) in the design, manufacture, contract to manufacture or retail
sale of children’s apparel and accessories or any other children’s orientated
merchandise; (2) providing products, services or other businesses which is
of the same nature as a product, service or business of the Company.

 

(ii)           directly or
indirectly employ (other than on behalf of the Company), solicit or entice away
any director, officer or employee of the Company; or

 

(iii)          induce or attempt
to induce any Person doing business with the Company to cease doing business
with the Company; or

 

10

 

(iv)          use the name of the
Company in the conduct of any business activities (except in furtherance of the
Company’s business) or for Executive’s personal use without the prior written
consent of the Company.

 

7.02.        Confidential
and Proprietary Information; Work Product; Warranty.

 

a.             Confidentiality.  Executive acknowledges and agrees that there
are certain trade secrets and confidential and proprietary information
(collectively, “Confidential Information”) which have been developed by the
Company and which are used by the Company in its business.  Confidential Information shall include,
without limitation:  (i) customer
lists and supplier lists; (ii) the details of the Company’s relationships
with its customers, including the financial relationship with a customer; (iii) the
Company’s marketing and development plans, business plans; and (iv) other
information proprietary to the Company’s business.  Executive shall not, at any time during or
after his employment hereunder, use or disclose such Confidential Information,
except to authorized representatives of the Company or as required in the
performance of his duties and responsibilities hereunder.  Executive shall return all Company property,
such as computers, software and cell phones, and documents (and any copies
including in machine or human-readable form), to the Company when his
employment terminates; provided, however, Executive shall be permitted to
retain any documents that Executive received, or had access to, as a member of
the Board of Directors.  Executive shall
not be required to keep confidential any information, which is or becomes
publicly available or is already in his possession (unless obtained from the
Company).  Further, Executive shall be
free to use and employ his general skills, know-how and expertise, and to use,
disclose and employ any generalized ideas, concepts, know-how, methods,
techniques or skills, including those gained or learned during the course of
the performance of any services hereunder, so long as she applies such information
without disclosure or use of any Confidential Information.  Executive hereby acknowledges that his
employment under this Agreement does not conflict with, or breach any existing
confidentiality, non-competition or other agreement to which Executive is a
party or to which he may be subject.

 

b.             Work
Product.  Executive agrees that all
copyrights, patents, trade secrets or other intellectual property rights
associated with any ideas, concepts, techniques, inventions, processes, or
works of authorship developed or created by his efforts during his employment
by the Company and for a period of 6 months thereafter, that (i) relate,
whether directly or indirectly, to the Company’s actual or anticipated
business, research or development or (ii) are derived from any work
performed by Executive on the Company’s behalf, shall, to the extent possible,
be considered works made for hire within the meaning of the Copyright Act (17
U.S.C. § 101 et seq.) (the “Work Product”). 
All Work Product shall be and remain the property of the Company.  To the extent that any such Work Product may
not, under applicable law, be considered works made for hire, Executive hereby
grants, transfers, assigns, conveys and relinquishes, and agrees to grant,
transfer, assign, convey and relinquish from time to time, on an exclusive
basis, all of his right, title and interest in and to the Work Product to 

 

11

 

the Company in perpetuity or for the longest period
otherwise permitted by law.  Consistent
with his recognition of the Company’s absolute ownership of all Work Product,
Executive agrees that he shall (i) not use any Work Product for the
benefit of any party other than the Company and (ii) perform such acts and
execute such documents and instruments as the Company may now or hereafter deem
reasonably necessary or desirable to evidence the transfer of absolute
ownership of all Work Product to the Company; provided, however, if
following ten (10) business days’ written notice from the Company,
Executive refuses, or is unable, due to disability, incapacity, or death, to
execute such documents relating to the Work Product, he hereby appoints any of
the Company’s officers as his attorney-in-fact to execute such documents on his
behalf.  This agency is coupled with an
interest and is irrevocable without the Company’s prior written consent.

 

c.             Warranty.  Executive represents and warrants to the
Company that (i) there are no claims that would adversely affect his
ability to assign all right, title and interest in and to the Work Product to
the Company; (ii) the Work Product does not violate any patent, copyright
or other proprietary right of any third party; (iii) Executive has the
legal right to grant the Company the assignment of his interest in the Work
Product as set forth in this Agreement; and (iv) he has not brought and
will not bring to his employment hereunder, or use in connection with such
employment, any trade secret, confidential or proprietary information of
another, or computer software, except for software that he has a right to use
for the purpose for which it shall be used, in his employment hereunder.

 

7.03.        Injunctive
Relief.  Executive acknowledges that
a breach or threatened breach of any of the terms set forth in this Section 7
shall result in an irreparable and continuing harm to the Company for which
there shall be no adequate remedy at law. 
The Company accordingly shall, without posting a bond, be entitled to
seek, and Executive shall not object to the Company obtaining, injunctive and
other equitable relief against any such breach or threatened breach, in
addition to any other remedies available to the Company.

 

7.04.        Essential
and Independent Agreements.  It is
understood by the parties hereto that Executive’s obligations and the
restrictions and remedies set forth in this Section 7 are essential
elements of this Agreement and that, but for his agreement to comply with
and/or agree to such obligations, restrictions and remedies, the Company would
not have entered into this Agreement or continue his employment on the terms
provided hereby.  Executive’s obligations
and the restrictions and remedies set forth in this Section 7 are
independent agreements and the existence of any claim or claims by his against
the Company under this Agreement or otherwise will not excuse his breach of any
of his obligations or affect the restrictions and remedies set forth under this
Section 7.

 

7.05.        Survival
of Terms; Representations.  Executive’s
obligations under this Section 7, and the Company’s obligations to
Executive under Section 6 hereof shall remain in full force and effect
notwithstanding the termination of Executive’s employment, in each case until
such obligations have been discharged and are no longer 

 

12

 

applicable. 
Executive acknowledges that he is sophisticated in business, and that
the restrictions and remedies set forth in this Section 7 do not create an
undue hardship on his and will not prevent his from earning a livelihood.  He further acknowledges that he has had a
sufficient period of time within which to review this Agreement, including this
Section 7, with an attorney of his choice and he has done so to the extent
he desired.  Executive and the Company
agree that the restrictions and remedies contained in this Section 7 are
reasonable and necessary to protect the Company’s legitimate business interests
regardless of the reason for or circumstances giving rise to a termination of
Executive’s employment by Employer and that he and the Company intend that such
restrictions and remedies shall be enforceable to the fullest extent
permissible by law.  Executive agrees
that, given the scope of the Company’s business and the sophistication of the
dissemination of information relating to the Company’s business, any further
geographic limitation on such remedies and restrictions would deny the Company
the protection to which it is entitled hereunder.  If it shall be found by a court of competent
jurisdiction that any such restriction or remedy is unenforceable but would be
enforceable if some part thereof were deleted or modified, then such
restriction or remedy shall apply with such modification as shall be necessary
to make it enforceable to the fullest extent permissible under law.

 

7.06.        Mutual Non-Disparagement.  Upon any termination of Executive’s
employment by the Company, neither Executive nor any executive of Employer will
make or authorize any public statement disparaging the other in its or his
business interests and affairs.  Notwithstanding
the foregoing, either party may make any statement that it or he believes is
necessary to correct any false or inaccurate statement made or authorized by
the other party and neither party shall be restricted in connection with any
litigation, arbitration or similar proceeding or with respect to its response
to any legal process.

 

7.07.        Other
Duties of Executive During Employment Period.  During the  Employment Period, Executive shall, upon
reasonable notice, furnish such information as may be in his possession to, and
shall cooperate with, the Company as may reasonably be requested by the Company
in connection with any investigation or litigation in respect of which the
Company is or may be a subject or party.

 

7.08.        No
Mitigation or Offset.  The Company’s
obligation to pay or provide Executive any amounts provided for hereunder shall
not be subject to set-off, counterclaim or recoupment of amounts owed by
Executive to the Company or its affiliates for any reason.  Executive shall not be required to mitigate
the amount of any payment provided for pursuant to this Agreement by seeking
other employment or otherwise and the amount of any payment provided for
pursuant to this Agreement shall not be reduced by any compensation earned as a
result of Executive’s other employment or otherwise.

 

13

 

SECTION 8

MISCELLANEOUS

 

8.01.        Notices.  Any notice, consent, or authorization
required or permitted to be given pursuant to this Agreement shall be in
writing and sent to the party for or to whom intended by personal delivery or
certified mail, postage paid, , at the address of such party set forth below or
at such other address as either party shall designate by notice given to the
other in the manner provided herein.

 

If to Employer:

 

The Children’s Place Retail Stores, Inc.

915 Secaucus Road

Secaucus, New Jersey 07094

Attention:  Chief Executive
Officer

 

with copies to:

 

The Children’s Place Retail Stores, Inc.

915 Secaucus Road

Secaucus, New Jersey  07094

Attention:  General Counsel

 

                and

 

Weil, Gotshal & Manges LLP

767 Fifth Avenue

New York, New York  10153

Attention:  Robert L. Messineo, Esq.

 

If to
Executive:

 

Charles K. Crovitz

34 W. Sound Lane

Pilot Hill Farm

Vineyard Haven, Massachusetts 02568

 

with a copy to:

 

Willkie Farr & Gallagher, LLP

787 Seventh Avenue

New York, New York 10019-6099

Attention:  Stephen T. Lindo, Esq.

 

14

 

8.02.        Tax
Withholding.  Except as otherwise
provided in Annex A, Employer is authorized to withhold from any payment to be
made hereunder to Executive such amounts for income tax, social security,
unemployment compensation, excise taxes and other taxes and penalties as in the
judgment of Employer is required to comply with applicable laws and
regulations.

 

8.03.        Dispute
Resolution and Governing Law.  Any
disagreement, dispute, controversy or claim arising out of or relating to this
Agreement or the interpretation of this Agreement or any arrangements relating
to this Agreement or contemplated in this Agreement or the breach, termination
or invalidity thereof shall be settled by final and binding arbitration
administered by JAMS/Endispute in New York, New York in accordance with the
then existing JAMS/Endispute Arbitration Rules and Procedures for
Employment Disputes.  In the event of
such an arbitration proceeding, the Executive and the Employer shall select a
mutually acceptable neutral arbitrator from among the JAMS/Endispute panel of
arbitrators.  In the event the Executive
and the Employer cannot agree on an arbitrator, the Administrator of
JAMS/Endispute will appoint an arbitrator. 
Neither the Executive nor the Employer nor the arbitrator shall disclose
the existence, content, or results of any arbitration hereunder without the
prior written consent of all parties. 
Except as provided herein, the rules and procedures of
JAMS/Endispute shall govern the interpretation and enforcement and all
proceedings.  The arbitrator shall apply
the substantive law (and the law of remedies, if applicable) of New York or,
solely to the extent it preempts such law, of applicable federal law, and the
arbitrator is without jurisdiction to apply any different substantive law.  The arbitrator shall have the authority to
entertain a motion to dismiss and/or a motion for summary judgment by any party
and shall apply the standards governing such motions under the Federal Rules of
Civil Procedure.  The arbitrator shall
render an award and a written, reasoned opinion in support thereof.  Judgment upon the award may be entered in any
court having jurisdiction thereof.

 

8.04.        Legal,
Consulting and Arbitration Expenses. 
Employer shall reimburse Executive for the legal expenses (including
attorney’s fees and disbursements) and consulting expenses actually and reasonably
incurred by Executive in connection with the negotiation, execution and
delivery of this Agreement.  In the event
of any dispute between Employer and Executive regarding Executive’s employment
hereunder, Employer shall also reimburse Executive for all reasonable legal
expenses and all arbitration fees actually incurred by Executive in connection
with such dispute but if and only if Executive is determined by the arbitrator
to have prevailed on at least one material issue in dispute.

 

8.05.        References
to Sections and Subsections; Headings. 
All references herein to sections or subsections are to the sections or
subsections of this Agreement unless otherwise specified.  All descriptive headings in this Agreement are
inserted for convenience only and shall be disregarded in construing or
applying any provision of this Agreement. 
Should any provision of this Agreement require judicial interpretation,
the court interpreting or construing the same shall not construe the provision
against any 

 

15

 

party by reason of the rule of interpretation
that a document is to be construed more strictly against the party who prepared
the same.

 

8.06.        Waiver
of Breach.  The waiver by either
party of a breach of any provision of this Agreement by the other party must be
in writing and shall not operate or be construed as a waiver of any other or
subsequent breach by such other party.

 

8.07.        Assignment.  This Agreement is personal in its nature and
the parties shall not, without the consent of the other, assign or transfer
this Agreement or any rights or obligations hereunder; provided, however,
that Employer may assign this Agreement to any of its affiliates or in
connection with the reorganization, merger or sale of Employer or the sale of
substantially all the assets of Employer, and the provisions of this Agreement
shall inure to the benefit of, and be binding upon, each successor of Employer,
whether by merger, consolidation, transfer of all or substantially all of its
assets or otherwise.

 

8.08.        Counterparts.  This Agreement may be executed in
counterparts, each of which shall be deemed to be an original, but all of which
together shall constitute one and the same agreement.

 

8.09.        Severability.  If any provision of this Agreement or part
thereof, is held to be unenforceable, the remainder of such provisions of this
Agreement, as the case may be, shall nevertheless remain in full force and
effect.

 

8.10.        Entire
Agreement and Integration.  Except
insofar as explicit reference is made herein to other agreements or documents,
this Agreement contains the entire agreement and understanding between Employer
and Executive with respect to the subject matter hereof.  This Agreement supersedes any prior agreement
between the parties relating to the subject matter hereof.

 

[Remainder of this page intentionally
left blank.]

 

16

 

IN
WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date
first written above.

 

	
   

  	
  THE CHILDREN’S PLACE RETAIL

  STORES, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Sally Frame Kasaks

  
	
   

  	
  Sally
  Frame Kasaks

  
	
   

  	
  Chair,
  Board of Directors

  
	
   

  	
  Dated:
  March 13, 2008

  
	
   

  	
  Sally
  Frame Kasaks

  
	
   

  	
   

  
	
   

  	
  CHARLES K. CROVITZ

  
	
   

  	
   

  
	
   

  	
  /s/ Charles K. Crovitz

  

 

17

 

Exhibit A

 

COMPENSATION

 

A.            Base Salary:  Executive’s annual salary rate shall be $1,000,000
per year, payable in equal installments not less frequently than monthly during
each year of the Employment Period.

 

B.            Performance Bonus:

 

(1)           Executive
shall be entitled to participate in, and to an opportunity to receive a “Performance
Bonus” pursuant to, Employer’s “Annual Management Incentive Bonus Plan” in
effect for the Company’s 2008 fiscal year on the terms hereinafter
provided.  The “Annual Management
Incentive Bonus Plan” shall mean the Annual Management Incentive Bonus Plan
approved by Employer’s stockholders on June 22, 2006, as such plan may be
amended in accordance with its terms, or any successor plan of a like nature
approved by Employer’s stockholders or, if in respect of any fiscal year during
the Employment Period, Employer’s stockholders have not approved any such plan,
such plan as the Board of Directors shall apply with respect to the payment of
performance-based bonuses to the senior executives of Employer.  Executive shall be eligible for an annual
bonus under the plan (subject to attainment of the performance levels specified
for such year pursuant to the plan) in an amount equal to 100% of Executive’s
Base Salary.  Bonuses shall be payable
under the Annual Management Incentive Bonus Plan on the terms provided therein,
subject to the provisions of subsections 6.01 and 6.02.

 

(2)           Nothing contained in
this section B or in any other provision of the Agreement shall restrict the
ability of Employer to pay to Executive a bonus or any other form of incentive
compensation in addition to that provided by the foregoing paragraph (1).

 

18

 

Exhibit B(1)

 

FORM OF
RELEASE

 

THIS RELEASE (the “Release”) is entered into by               
(the “Executive).

 

WHEREAS, the Executive and The Children’s Place Retail Stores, Inc.,
a Delaware corporation (together with its successors and assigns, the “Company”),
have entered into an Employment Agreement dated as September 26, 2007 (the
“Employment Agreement”); and

 

WHEREAS, the Executive’s employment has been terminated by the Company
or by the Executive or upon Executive’s death or disability and as such the
Executive is due certain payments and entitlements pursuant to the Employment
Agreement, subject to the execution of this Release by Executive or by his
legal representative, estate, heirs, or distributees;

 

NOW, THEREFORE, in consideration of the payments set forth in the
Employment Agreement and other good and valuable consideration, the Executive
agrees as follows:

 

                The
Executive, on behalf of himself and his dependents, heirs, administrators,
agents, executors, successors and assigns (the “Executive Releasees”), hereby
releases and forever discharges the Company and its affiliated companies and
their past and present parents, subsidiaries, successors and assigns (the “Company
Affiliated Parties”) and all of the Company Affiliated Parties’ past and
present directors, officers, employees, agents and their successors and assigns
(but as to any such individual or agent, only in connection with, or in
relationship to, his or its capacity as, and only while serving as, a director,
officer, employee, agent, successor or assign of any Company Affiliated Party
and not in connection with, or in relationship to, his or its personal capacity
unrelated to any Company Affiliated Party) (collectively, the “Company
Releasees”), from any and all claims, demands, obligations, liabilities and
causes of action of any kind or description whatsoever, in law, equity or
otherwise, whether known or unknown, that any Executive Releasee had, may have
had or now has against the Company or any other Company Releasee, as of the
date of the execution of this Release by the Executive, arising out of or
relating to the Executive’s employment relationship, or the termination of that
relationship, with the Company or any affiliate, including, but not limited to,
any claim, demand, obligation, liability or cause of action arising under any
Federal, state, or local employment law or ordinance (including, but not
limited to, Title VII of the Civil Rights Act of 1964, the Civil Rights Acts of
1866, 1871, 1964 or 1991, the Equal Pay Act, the Americans with Disabilities
Act of 1991, the National Labor Relations Act, the Fair Labor Standards Act of
1938, the Workers Adjustment and Retraining Notification Act, the Employee
Retirement Income Security Act of 1974, as amended (other than any 

 

(1) To be appropriately modified if entered into by Executive’s estate
or guardian.

 

19

 

claim for vested benefits), the Family and Medical
Leave Act of 1993, the Age Discrimination in Employment Act of 1967, as
amended, the Older Workers’ Benefit Protection Act of 1990 and the Consolidated
Omnibus Budget Reconciliation Act of 1985), tort, contract or any alleged
violation of any other legal obligation. 
Anything to the contrary notwithstanding in this Release or the
Employment Agreement, nothing herein shall release any Company Releasee from
any claims or damages based on (i) any right or claim that arises after
the date the Executive executes this Release, (ii) any right the Executive
may have to payments, benefits or entitlements under the Employment Agreement
or any applicable plan, policy, program or arrangement of, or other agreement
with, the Company or any affiliate, (iii) any right of Executive to be
indemnified in accordance with the Employment Agreement, or under applicable
laws or the certificate of incorporation or by-laws of Company or its
affiliates, or under any separate indemnification agreement or any applicable
insurance policy, or (iv) any right the Executive may have to obtain
contribution as permitted by law in the event of entry of judgment against the
Executive as a result of any act or failure to act for which the Executive and
any Company Releasee are jointly liable.

 

The Executive acknowledges that he has been provided a period of at
least 21 calendar days in which to consider and execute this Release.  The Executive further acknowledges and
understands that he has seven calendar days from the date on which he executes
this Release to revoke his agreement by delivering to the Company written
notification (in accordance with Section 8.01 of the Employment Agreement)
of his intention to revoke this Release. 
This Release becomes effective when signed by the Executive unless
revoked in writing by the Executive in accordance with this seven-day
provision.  To the extent that the
Executive has not otherwise done so, the Executive is advised to consult with
an attorney prior to executing this Release.

 

This Release shall be
governed by and construed and interpreted in accordance with the internal laws
of State of New York, as applicable to agreements made and to be performed
therein, without reference to principles, policies or provisions thereof
concerning conflicts of law.

 

IN WITNESS
WHEREOF, the Executive has executed this Release as of the date indicated
below.

 

 

	
   

  	
  /s/
  Charles K. Crovitz

  
	
   

  	
  Charles K.
  Crovitz

  
	
   

  	
   

  
	
   

  	
  Date:

  	
   

  

 

20

 

Annex A

 

RESTRICTED
STOCK AWARD AGREEMENT

 

21

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