Document:

Exhibit 10.3

 Exhibit 10.3 
 LOCK-UP AGREEMENT 
                     , 200     
 Endeavor Acquisition Corp. 
 7 Times Square, 17th Floor 
 New York, New York 10035 
  

	 	Re:	Securities Issued in Transactions with American Apparel, Inc. and Companies 

 Ladies and Gentlemen: 
 In connection with the Agreement and Plan of Reorganization (“Agreement”),
dated December 18, 2006 by and among Endeavor Acquisition Corp., a Delaware corporation (“Corporation”), AAI Acquisition Corp., a California corporation and wholly owned subsidiary of the Corporation (“Merger Sub”),
American Apparel, Inc., a California corporation (“AAI”), all of the affiliated companies of AAI through which it operates in Canada (collectively, “CI”), American Apparel, LLC, a California limited liability company
(“AALLC”), Dov Charney, a holder of 50% of the outstanding capital stock of AAI and 50% of the outstanding membership interests of AALLC, Sam Lim, the holder of the remaining 50% of the outstanding capital stock of AAI and 50% of the
outstanding membership interests of AALLC, and all of the stockholders of each of the CI companies to induce the Corporation to enter into the Agreement and consummate the Business Combination (as defined in the Agreement), the undersigned agrees
to, neither directly nor indirectly, during the “Restricted Period” (as hereinafter defined): 
  

	 	(1)	sell or offer or contract to sell or offer, grant any option or warrant for the sale of, assign, transfer, pledge, hypothecate, or otherwise encumber or dispose of (all being
referred to as a “Transfer”) any legal or beneficial interest in any shares of stock, $.0001 par value, of the Corporation (“Parent Common Stock”) issued to the undersigned in connection with the Business Combination or the
transactions related thereto (the “Restricted Securities”); or 

  

	 	(2)	enter into any swap or any other agreement or any transaction that transfers, in whole or in part, directly or indirectly, the economic consequence of ownership of any of the
Restricted Securities, whether such swap transaction is to be settled by delivery of any Restricted Securities or other securities of any person, in cash or otherwise. 

 As used herein, “Restricted Period” means the period commencing on the Closing Date (as defined in the Agreement) and ending on the third anniversary thereof. 
 Notwithstanding the foregoing limitations, this Lock-Up Agreement will not prevent any Transfer of any or all of the Restricted Securities, either during
the undersigned’s lifetime or on the undersigned’s death, by gift, will or intestate succession, or by judicial decree, to the undersigned’s “family members” (as defined below) or to trusts, family limited partnerships and
similar entities primarily for the benefit of the undersigned or the undersigned’s “family 

 members”; provided, however, that in each and any such event it shall be a condition to the Transfer that the
transferee execute an agreement stating that the transferee is receiving and holding the Restricted Securities subject to the provisions of this Lock-Up Agreement, and other than to return the Restricted Securities to the former ownership, there
shall be no further Transfer of the Restricted Securities except in accordance with this Lock-Up Agreement. For purposes of this sub-paragraph, “family member” shall mean spouse, lineal descendants, stepchildren, father, mother, brother or
sister of the transferor or of the transferor’s spouse. Also notwithstanding the foregoing limitations, in the event the undersigned is an entity rather than an individual, this Lock-Up Agreement will not prevent any Transfer of any or all of
the Restricted Securities to the shareholders of such entity, if it is a corporation, to the members of such entity, if it is a limited liability company, or to the partners in such entity, if it is a partnership; provided, however, that in each and
any such event it shall be a condition to the Transfer that the transferee execute an agreement stating that the transferee is receiving and holding the Restricted Securities subject to the provisions of this Lock-Up Agreement, and other than to
return the Restricted Securities to the former ownership, there shall be no further Transfer of the Restricted Securities in accordance with this Lock-Up Agreement. 
 The undersigned hereby authorizes the Corporation’s transfer agent to apply to any certificates representing Restricted Securities issued to the undersigned the appropriate legend to reflect the existence and
general terms of this Lock-up Agreement. 
 This Lock-up Agreement will be legally binding on the undersigned and on the undersigned’s
heirs, successors, executors, administrators, conservators and permitted assigns, and is executed as an instrument governed by the laws of the State of Delaware. 
  

	
	Very truly yours,
	
	  

	(Signature)
	
	Name (Print):
                                        
    
	
	Address:
                                        
            
	
	  

	
	  

  

 2Exhibit 10.4

 Exhibit 10.4 
 EMPLOYMENT AGREEMENT 
 This Employment Agreement (the “Agreement”) is made between Endeavor
Acquisition Corp. (“Company”), a Delaware corporation, AAI Acquisition Corp., a wholly owned subsidiary of the Company (“Merger Sub”), and Dov Charney (the “Executive”) and is being entered into concurrently with the
closing of the merger and related business combination transactions (collectively, the “Acquisition”) prescribed by the Agreement and Plan of Reorganization (“Reorganization Agreement”) entered into as of December 18, 2006,
by and among the Company, Merger Sub, American Apparel, Inc., a California corporation (“AAI”), the various Canadian companies defined in the Reorganization Agreement as CI, American Apparel, LLC, a California limited liability company
(“AALLC” and, collectively with AAI and CI, the “Target Companies”), and all of the stockholders or members of the Target Companies, which include the Executive. Capitalized terms not otherwise defined herein shall have the
meanings assigned to them in the Merger Agreement. 
 RECITALS 
 WHEREAS, the Company desires to be assured of the association and services of Executive; and 
 WHEREAS,
Executive is willing and desires to be employed by the Company, and the Company is willing to employ Executive, upon the terms, covenants and conditions hereinafter set forth. 
 NOW, THEREFORE, in consideration of the mutual terms, covenants and conditions hereinafter set forth, the parties hereto agree as follows: 
 1. Employment. The Company hereby employs Executive, and Executive hereby accepts such employment, effective as of the Effective Date, upon
the mutual terms, covenants and conditions set forth herein. 
 2. Term. 
 2.1 Initial Term. The initial term of this Agreement shall be for a period of three (3) years commencing on the Effective Date hereof, unless
terminated earlier pursuant to Section 7 hereof; provided, however, that Executive’s obligations in Section 6 hereof shall continue in effect after such termination. 
 2.2 Additional Terms. This Agreement shall be renewed for successive periods of one (1) year unless either party shall give notice of
non-renewal, within sixty (60) days of the expiration of the initial three-year term or any such one-year renewal term. 
 3.
Duties. Executive shall serve as Chief Executive Officer and President of each of the Company, Merger Sub and the CI companies with such duties and responsibilities as may from time to time be assigned to Executive by the Board of
Directors of the Company, Merger Sub or the CI companies (in any case, the “Board”), 

 commensurate with Executive’s title and position described in this sentence. The duties and services to be performed
by Executive under this Agreement are collectively referred to herein as the “Services”. Executive shall report directly to the Board. Executive agrees that he shall at all times conscientiously perform all of the duties and obligations
assigned to him under the terms of this Agreement to the best of his ability and experience and in compliance with law. Executive shall perform his duties out of the Company’s Los Angeles, California office (as same may be relocated in the same
metropolitan area from time to time) or at such other location as shall be agreed to by the Company and Executive; provided, that, Executive’s duties will include reasonable travel in the United States and abroad, including but not limited to
travel to the Company’s domestic and foreign showrooms and offices of Company and its subsidiaries and affiliates as is reasonably necessary and appropriate to the performance of Executive’s duties hereunder. Executive will comply with and
be bound by Company’s operating policies, procedures, and practices from time to time in effect during Executive’s employment. 
 4. Exclusive Service. Executive agrees to use his best efforts to promote the interests of the Company and to devote his full business time and energies to the business and affairs of the Company and the performance of his
duties hereunder. Executive may, however, engage in civic and not-for-profit activities for which no compensation (other than reimbursement of his actual expenses incurred in performance of such activities) is paid to him, so long as such activities
do not materially interfere with the performance of his duties to the Company or directly conflict with the Company’s business interests. 
 5. Compensation and Benefits. 
 5.1 Salary. During the term of this Agreement, Company shall pay
Executive an initial salary of $1 per annum. 
 5.2 Benefits. Executive will be eligible to participate (at Company’s cost) in
Company’s employee benefit plans of general application as they may exist from time to time, including without limitation those plans covering pension and profit sharing, executive bonuses, stock purchases, stock options, and those plans
covering life, health, and dental insurance in accordance with the rules established for individual participation in any such plan and applicable law. Executive will receive such other benefits, including vacation, holidays and sick leave, as
Company generally provides to its employees holding similar positions as that of Executive. The Company reserves the right to change or otherwise modify, in its sole discretion, the benefits offered herein to conform to the Company’s general
policies as may be changed from time to time during the term of this Agreement. Executive shall also be entitled to continue to use the Target Companies’ residential apartments and vehicles maintained by the Target Companies for use by its
executives and other employees. 
 5.3 Bonus Suspension. Executive shall not be eligible to earn a bonus during the first three years
following execution of this Agreement. 
  

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 5.4 Expenses. Company will reimburse Executive for all reasonable and necessary expenses incurred
by Executive in connection with Company’s business, provided that such expenses are deductible to Company, are in accordance with Company’s applicable policy and are properly documented and accounted for in accordance with the requirements
of the Internal Revenue Service. 
 6. Confidentiality and Proprietary Rights. 
 6.1 Confidentiality. Executive acknowledges that as a result of his employment with the Company and his prior employment with the Target Companies,
Executive has obtained and will obtain secret and confidential information concerning the business of the Company, the Target Companies and their subsidiaries and affiliates (all of such entities referred to collectively in this Section, as the
“Company”). Other than in the performance of his duties hereunder, Executive agrees not to disclose, either during the Term of his employment with the Company or at any time thereafter, to any person, firm or corporation any confidential
information concerning the Company which is not in the public domain including trade secrets, budgets, strategies, operating plans, marketing plans, patents, copyrights, supplier lists, company agreements, employee lists, or the customer lists or
similar information of the Company. 
 6.2 Proprietary Rights. All records, files, memoranda, reports, price lists, customer lists, drawings,
plans, sketches, documents and the like (together with all copies thereof) relating to the business of the Company and/or its subsidiaries, which Executive shall use or prepare or come in contact with in the course of, or as a result of, his
employment shall, as between the parties, remain the sole property of the Companies. Upon termination of his employment with the Company, Executive agrees to immediately return all such materials and shall not thereafter cause removal thereof from
the premises of the Company. Further, the Executive agrees to disclose and assign to the Company as its exclusive property, all ideas, writings, inventions, discoveries, improvements and technical or business innovations made or conceived by the
Executive, whether or not patentable or copyrightable, either solely or jointly with others during the course of his employment with the Company, which are along the lines of the business, work or investigations of the Company or its subsidiaries.

 7. Termination. 
 7.1 Bases for Termination. 
 (a) Executive’s employment hereunder may be terminated at any time by mutual agreement of
the parties. 
 (b) This Agreement and Executive’s employment with the Company shall automatically terminate on the date on which
Executive dies or becomes permanently incapacitated. “Permanent incapacity” as used herein shall mean mental or physical incapacity, or both, reasonably determined by the Company based upon a certification of such incapacity by, in the
sole discretion of the Company, either Executive’s regularly attending physician or a duly licensed physician selected by the 
  

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 Company, rendering Executive unable to perform substantially all of his duties hereunder and which appears reasonably
certain to continue for at least six consecutive months without substantial improvement. Executive shall be deemed to have “become permanently incapacitated” on the date 30 days after the Company has determined that Executive is
permanently incapacitated and so notifies Executive. 
 (c) Executive’s employment may be terminated by the Company “with
cause”, effective upon delivery of written notice to Executive given at any time (without any necessity for prior notice) in the event of any of the following actions by Executive: (i) conviction of any felony, (ii) material breach by
Executive of his obligations under the Merger Agreement, (iii) fraud against the Company or any of its subsidiaries or theft of or maliciously intentional damage to the property of the Company or any of their subsidiaries, (iv) willful or
reckless breach of Executive’s fiduciary duties to the Company or willful misconduct as an employee of the Company that results in material economic detriment to the Company, (v) neglect or unreasonable refusal to perform the material
duties and responsibilities assigned to Executive by the Board or under this Agreement, or (vi) breach by Executive of any provision of this Agreement; provided, however, that with respect to clauses (v) and (vi) above, in order for
Executive to be terminated “with cause”, the Company must give Executive written notice detailing the alleged breach and such breach shall note have been cured within 30 days of receipt of such notice. 
 (d) Executive’s employment may be terminated by the Company “without cause”, effective upon delivery of written notice to Executive given
at any time (without any necessity for prior notice) provided that the Company complies with all provisions of this Agreement related to severance, vesting of options and continuation of benefits as set forth herein. 
 (e) Executive may terminate his employment hereunder by giving the Company no less than 30 days prior written notice of such termination. 
 7.2 Payment Upon Termination. Upon termination of Executive’s employment pursuant to Section 7.1, the Company shall pay to Executive,
within ten days after the effective date of such termination any unreimbursed expenses then owed by the Company to Executive and Executive shall not be entitled to any other consideration or compensation. 
 8. Miscellaneous. 
 8.1
Transfer and Assignment. This Agreement is personal as to Executive and shall not be assigned or transferred by Executive. This Agreement shall be binding upon and inure to the benefit of all of the parties hereto and their respective
permitted heirs, personal representatives, successors and assigns. 
 8.2 Severability. Nothing contained herein shall be construed to
require the commission of any act contrary to law. Should there be any conflict between any provisions hereof and any present or future statute, law, ordinance, regulation or 
  

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 other pronouncement having the force of law, the latter shall prevail, but the provision of this Agreement affected
thereby shall be curtailed and limited only to the extent necessary to bring it within the requirements of the law, and the remaining provisions of this Agreement shall remain in full force and effect. 
 8.3 Governing Law. This Agreement shall be governed by and construed and interpreted in accordance with the laws of the State of California.

 8.4 Injunctive Relief. If Executive commits a breach, or threatens to commit a breach, of any of the provisions of Section 6,
the Company shall have the right and remedy to seek to have the provisions of this Agreement specifically enforced by any court having equity jurisdiction, it being acknowledged and agreed by Executive that the services being rendered hereunder to
the Company (and which were rendered to Target Companies prior to the date hereof) are of a special, unique and extraordinary character and that any such breach or threatened breach may cause irreparable injury to the Company and that money damages
may not provide an adequate remedy to the Company. The rights and remedies enumerated in this Section 8.4 shall be in addition to, and not in lieu of, any other rights and remedies available to the Company under law or equity. In connection
with any legal action or proceeding arising out of or relating to this Agreement, the prevailing party in such action or proceeding shall be entitled to be reimbursed by the other party for the reasonable attorneys’ fees and costs incurred by
the prevailing party. 
 8.5 Dispute Resolution. All claims for monetary damages between the Company and Executive with respect to
this Agreement shall be resolved by binding arbitration, with all proceedings conducted in Los Angeles, California, administered under the rules and regulations of the American Arbitration Association with the Federal Rules of Evidence applicable in
all respects thereto. Neither the Company nor Executive shall be limited to arbitration with respect to claims for equitable relief hereunder. 
 8.6 Counterparts. This Agreement may be executed in several counterparts and all documents so executed shall constitute one agreement, binding on all of the parties hereto, notwithstanding that all of the parties did not sign the
original or the same counterparts. 
 8.7 Entire Agreement. This Agreement constitutes the entire agreement and understanding of the
parties with respect to the subject matter hereof and supersedes all prior oral or written agreements, arrangements and understandings with respect thereto. No representation, promise, inducement, statement or intention has been made by any party
hereto that is not embodied herein, and no party shall be bound by or liable for any alleged representation, promise, inducement, or statement not so set forth herein. 
 8.8 Modification. This Agreement may be modified, amended, superseded or cancelled, and any of the terms, covenants, representations, warranties or conditions hereof may be waived, only by a written instrument
executed by all of the parties hereto. 
  

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 8.9 Attorneys’ Fees and Costs. In the event of any dispute arising out of the subject matter
of this Agreement, the prevailing party shall recover, in addition to any other damages assessed, its attorneys’ fees, legal expenses and court costs incurred in litigating, arbitrating or otherwise attempting to enforce this Agreement or
resolve such dispute. In construing this Agreement, no party hereto shall have any term or provision construed against such party solely by reason of such party having drafted or written such term or provision. 
 8.10 Waiver. The waiver by either of the parties, express or implied, of any right under this Agreement or any failure to perform under this
Agreement by the other party, shall not constitute or be deemed as a waiver of any other right under this Agreement or of any other failure to perform under this Agreement by the other party, whether of a similar or dissimilar nature. 
 8.11 Cumulative Remedies. Each and all of the several rights and remedies provided in this Agreement, or by law or in equity, shall be cumulative,
and no one of them shall be exclusive of any other right or remedy, and the exercise of any one of such rights or remedies shall not be deemed a waiver of, or an election to exercise, any other such right or remedy. 
 8.12 Headings. The section and other headings contained in this Agreement are for reference purposes only and shall not in any way affect the
meaning and interpretation of this Agreement. 
 8.13 Notices. Any notice under this Agreement must be in writing and may be:
(i) telecopied, (ii) sent by overnight courier, (iii) hand-delivered, or (iv) sent by United States mail, to the party to be notified at the following address: 
  

			
	If to the Company, to:	 	Endeavor Acquisition Corp.
		 	[Post-merger address]
		 	Attention: Chairman of the Board
		 	Telephone:
		 	Facsimile:
		 	

  

			
	If to the Executive, to:	 	Dov Charney
		 	[Home address]
		 	[Home phone and facsimile]

 8.14 Survival. Any provision of this Agreement which imposes an obligation after
termination or expiration of this Agreement (including but not limited to the obligations set forth in Section 6 hereof) shall, unless otherwise specified, survive the termination or expiration of this Agreement and be binding on Executive and
the Company. 
  

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 IN WITNESS WHEREOF, Company and Executive have executed this Agreement as of the date first above
written. 
  

					
	In the presence of:	  	Endeavor Acquisition Corp.
			
	  
	  	By:	 	  

		
	  
	  	American Apparel (USA), Inc.
			
		  	By:	 	  

		
	  
	  	American Apparel (Canada), Inc.
			
		  	By:	 	  

		
	  
	  	  

		  	Dov Charney

  

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