Document:

Rule 10b5-1 Sales Plan dated December 5, 2006

 Exhibit 10.1 
  

					
	 Issuer: Omega Protein Corporation
	  	Client: Joseph L. von Rosenberg III	  	

 

 
 Corporate Equity Solutions Group 
 Preset Diversification ProgramSM (PDP) 
 Sales Plan 
 Sales Plan dated the date
specified in Exhibit A hereto (this “Sales Plan”) between Seller specified in Exhibit A (“Seller”) and Morgan Stanley DW Inc. (“Morgan Stanley”), acting as agent for Seller. Capitalized terms used but not defined herein
shall have the meaning given such terms in Exhibits A and B hereto. 
 A. Recitals 
 1. This Sales Plan is entered into between Seller and Morgan Stanley for the purpose of establishing a trading plan that complies with the requirements of
Rule 10b5-1(c)(1) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). 
 2. Seller is establishing this
Sales Plan in order to permit the orderly disposition of a portion of Seller’s holdings of common stock (the “Stock”) of the Issuer, including (only if the Sales Plan covers Stock that Seller has the right to acquire under outstanding
stock options as specified in Exhibit B hereto) Stock that Seller has the right to acquire under outstanding stock options listed on Exhibit C (the “Options”) issued by the Issuer. 
 B. Representations, Warranties and Covenants 
 1. As of the date hereof, Seller is not aware of any material nonpublic information concerning the Issuer or its securities. Seller is entering into this Sales Plan in good faith and not as part of a plan or scheme to evade compliance with
the federal securities laws. 
 2. The securities to be sold under this Sales Plan are owned free and clear by Seller (subject, in the case
of shares underlying Options (if Exhibit C is applicable), only to the compliance by Seller with the exercise provisions of such Options) and, as of the Selling Start Date, are not subject to any agreement granting any pledge, lien, mortgage,
hypothecation, security interest, charge, option or encumbrance or any other limitation on disposition, other than those which may have been entered into between Seller and Morgan Stanley or imposed by Rules 144 or 145 under the Securities Act of
1933, as amended (the “Securities Act”). 
 Preset Diversification Program is a registered service mark of Morgan
Stanley & Co. Incorporated, protected in the United States and other countries. 
 3. While this Sales Plan is in effect, Seller
agrees not to enter into or alter any corresponding or hedging transaction or position with respect to the securities covered by this Sales Plan (including, without limitation, with respect to any securities convertible or exchangeable into the
Stock) and, unless this Sales Plan is modified or terminated in accordance with the terms hereof, agrees not to alter or deviate from the terms of this Sales Plan. 
 4. Seller agrees that Seller shall not, directly or indirectly, communicate any information relating to the Stock or the Issuer to any employee of Morgan Stanley or its affiliates who is involved, directly or
indirectly, in executing this Sales Plan at any time while this Sales Plan is in effect. Morgan Stanley represents that it has in place reasonable policies and procedures to ensure that any representative of Morgan Stanley effecting sales pursuant
to this Sales Plan does not sell shares of Stock on the basis of material non-public information. Any notice given to Morgan Stanley pursuant to this Sales Plan shall be given in accordance with paragraph F.4 below. 
 5.(a) Seller agrees to provide Morgan Stanley with a certificate dated as of the date hereof and signed by the Issuer substantially in the form of
Exhibit D hereto prior to commencement of the Plan Sales Period (as defined below). 
 (b) Seller agrees to notify Morgan Stanley’s PDP
Trading Desk in writing at the address set forth in paragraph F.4 below as soon as practicable if Seller becomes aware of (i) a legal, contractual or regulatory restriction that is applicable to Seller or Seller’s affiliates or a stock
offering requiring an affiliate lock-up, which would prohibit any sale pursuant to the Sales Plan (other than any such restriction relating to Seller’s possession or alleged possession of material nonpublic information about the Issuer or its
securities), (ii) a change in the Issuer’s insider trading policies, so that the sales to be made by Morgan Stanley for the account of the Seller pursuant to the Sales Plan would violate these policies, or (iii) where the Sales Plan
covers Stock that Seller has the right to acquire under outstanding stock options, a change in the Issuer’s policies with regard to the timing or method of exercising such options which could interfere with the manner or timing of the sales to
be made pursuant to this Sales Plan. In the case of a notice relating to clause (i) above, such notice shall indicate the anticipated duration of the restriction, but shall not include any other information about the nature of the restriction
or its applicability to Seller and shall not in any way communicate any material nonpublic information about the Issuer or its securities to Morgan Stanley. Such notice shall be in addition to the notice required to be given to Morgan Stanley by the
Issuer pursuant to the certificate set forth as Exhibit D hereto. 
 6. Seller agrees to complete, execute and deliver to Morgan Stanley a
seller representation letter dated as of the date hereof substantially in the form of Exhibit E hereto prior to the commencement of the Plan Sales Period. 
  

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 7. The execution and delivery of this Sales Plan by Seller and the transactions contemplated by this
Sales Plan will not contravene any provision of applicable law or any agreement or other instrument binding on Seller or any of Seller’s affiliates or any judgment, order or decree of any governmental body, agency or court having jurisdiction
over Seller or Seller’s affiliates. 
 8. Seller has consulted with Seller’s own advisors as to the legal, tax, business, financial
and related aspects of this Sales Plan. Seller acknowledges that Morgan Stanley is not acting as its fiduciary but is acting in a brokerage capacity in connection with the adoption and implementation of this Sales Plan. 
 9. Seller agrees that until this Sales Plan has been terminated Seller shall not, without providing prior written notice to Morgan Stanley,
(i) enter into a binding contract with respect to the purchase or sale of Stock with another broker, dealer or financial institution (each, a “Financial Institution”), (ii) instruct another Financial Institution to purchase or
sell Stock or (iii) adopt a plan for trading with respect to Stock other than this Sales Plan. 
 10. (a) Seller agrees to make (or
cause to be made) all filings, if any, required under Sections 13(d), 13(g) and 16 of the Exchange Act in a timely manner, to the extent any such filings are applicable to Seller. 
 (b) Seller agrees that Seller shall at all times during the Plan Sales Period (as defined below), in connection with the performance of this Sales Plan,
comply with all applicable laws, including, without limitation, Section 16 of the Exchange Act and the rules and regulations promulgated thereunder. 
 (c) Seller agrees to complete, execute and deliver to Morgan Stanley a Section 16 Authorization Letter in the form attached hereto as Exhibit F. 
 11. Seller acknowledges and agrees that Seller does not have, and shall not attempt to exercise, any influence over how, when or whether to effect sales
of Stock pursuant to this Sales Plan. Seller and Morgan Stanley acknowledge and agree that Morgan Stanley shall not sell Stock pursuant to this Sales Plan at any time when any person at Morgan Stanley executing such sales is aware of material
nonpublic information concerning the Issuer or its securities. 
 12. (a) Seller represents that Seller is not entering into the Sales
Plan on behalf of, or with the assets of, an individual retirement account or individual retirement annuity, or any employee retirement or employee benefit plan (such as, for example, a Keogh or “HR-10” plan). [Explanatory Note: A Sales
Plan involving the sale of stock acquired through the exercise of employee stock options would not be “on behalf of, or with the assets of’ any of the types of plans referred to in this sub-paragraph.] 
 (b) If Seller is not an individual, Seller represents that Seller is not an “employee benefit plan” within the meaning of Section 3(3) of
the Employee Retirement Income Security Act of 1974, as amended, or a “plan” as defined under Section 4975(e) of the Internal Revenue Code of 1986, as amended, or an entity whose underlying assets include the assets of any such plan
by reason of such a plan’s investment in such entity. 
 13. If the Stock is to be sold pursuant to Rule 144 or 145 of the Securities
Act (as indicated by Seller in Exhibit A hereto), Seller makes the following additional representations, warranties and agreements: 
 (a)
Seller represents and warrants that the Stock to be sold pursuant to this Sales Plan is currently eligible for sale under Rule 144 or 145. 
 (b) Seller agrees not to take, and agrees to cause any person or entity with which Seller would be required to aggregate sales of Stock pursuant to paragraph (a)(2) or (e) of Rule 144 not to take, any action that would cause the sales
hereunder not to meet all applicable requirements of Rule 144. 
 (c) Seller agrees to complete, execute and deliver to Morgan Stanley Forms
144 for the sales to be effected under this Sales Plan at such times and in such numbers as Morgan Stanley shall request, and Morgan Stanley agrees to file such Forms 144 on behalf of Seller as required by applicable law. The “Remarks”
section of each Form 144 shall bear a notification which states that the Stock covered by such Form 144 is being sold pursuant to this Sales Plan and that the representation regarding Seller’s knowledge of material nonpublic information speaks
as of the date that Seller adopted this Sales Plan. If Exhibit A indicates that the Stock is to be sold pursuant to Rule 144 or 145 of the Securities Act, Seller agrees that Morgan Stanley shall continue making Form 144 filings as contemplated by
this paragraph B.13(c) in connection with sales under this Sales Plan until Morgan Stanley receives a written notification (which notification shall be acknowledged by the Issuer) stating that Seller is no longer an “affiliate” of the
Issuer as that term is defined under Rule 144. 
 (d) Seller hereby grants Morgan Stanley a power of attorney to complete and/or file on
behalf of Seller any required Forms 144. Notwithstanding such power of attorney, Seller acknowledges that Morgan Stanley shall have no obligation to complete or file Forms 144 on behalf of Seller except as set forth in subparagraph (c). 

14. Morgan Stanley agrees to conduct all sales pursuant to this Sales Plan in accordance with the manner of sale and current public information
requirements of Rule 144 and in no event shall Morgan Stanley effect any sale if such sale would exceed the then-applicable amount limitation under Rule 144, assuming Morgan Stanley’s sales pursuant to this Sales Plan are the only sales subject
to that limitation. 
  

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 15. As of the date hereof, Seller has not received notice of the imposition of, and Seller is not
otherwise aware of the actual or approximate beginning or ending dates of, any existing or impending “blackout period” pertaining to the Issuer’s securities in individual account plans maintained by the Issuer, as defined by Rule
100(b) of Regulation Blackout Trading Restriction (“Regulation BTR”) issued by the Securities and Exchange Commission (the “SEC”), and any amendments thereto. 
 C. Implementation of the Plan 
 1. Seller hereby appoints Morgan Stanley to sell shares of
Stock pursuant to the terms and conditions set forth below. Subject to such terms and conditions, Morgan Stanley hereby accepts such appointment. 
 2. Morgan Stanley is authorized to begin selling Stock pursuant to this Sales Plan on the Selling Start Date and shall cease selling Stock on the earliest to occur of (i) the date on which Morgan Stanley is required to suspend or
terminate sales under this Sales Plan pursuant to paragraph D.3 below, (ii) if Seller is an individual, the date on which Morgan Stanley receives notice of the death of Seller, (iii) the date on which Morgan Stanley receives notice of the
commencement or impending commencement of any proceedings in respect of or triggered by Seller’s bankruptcy or insolvency, (iv) the date on which Morgan Stanley receives a valid Customer Securities Account Transfer notice with respect to
the account of Seller, and (v) the Selling End Date (the “Plan Sales Period”). 
 3.(a) Morgan Stanley shall sell the Interim
Sale Amount specified in Exhibit B for the account of Seller during each Interim Sales Period specified in Exhibit B at Morgan Stanley’s sole discretion in accordance with ordinary principles of best execution; provided, that Morgan
Stanley shall not sell any shares of Stock pursuant to this Sales Plan at a price of less than the Minimum Sale Price specified in Exhibit B; and provided, further, that, except as otherwise provided in Exhibit B hereto, Morgan Stanley shall
not sell any shares of Stock pursuant to this Sales Plan to the extent that such sales would, on any given day, constitute over 25% of the total trading volume on any such day, as reasonably estimated by Morgan Stanley at such time. 
 A “Trading Day” is any day during the Plan Sales Period that the primary market on which the Stock regularly trades is open for business and
the Stock trades regular way on such market. 
 (b) The Interim Sale Amount, the Total Sale Amount and the Minimum Sale Price (to the extent
any such terms are applicable) and any other share amounts and per share prices set forth in paragraph C of this Sales Plan shall be adjusted automatically on a proportionate basis to take into account any stock split, reverse stock split or stock
dividend with respect to the Stock or any change in capitalization with respect to the Issuer that occurs during the Plan Sales Period. 
 4.
Morgan Stanley shall not sell Stock hereunder at any time when: 
 (i) Morgan Stanley, in its sole discretion, has determined that a market
disruption, material disruption in securities settlement, payment or clearance services, banking moratorium, outbreak or escalation of hostilities or other crisis or calamity that could, in Morgan Stanley’s judgment, impact offer, sales or
delivery of the Stock has occurred (provided, however, that Morgan Stanley shall resume effecting trades in accordance with this Sales Plan as soon as Morgan Stanley determines that it is reasonably practical to do so); or 
 (ii) Morgan Stanley, in its sole discretion, has determined that it is prohibited from doing so by a legal, contractual or regulatory restriction
applicable to it or its affiliates or to Seller or Seller’s affiliates (other than any such restriction relating to Seller’s possession or alleged possession of material nonpublic information about the Issuer or the Stock); or 

(iii) Morgan Stanley has received notice from the Issuer or Seller of the occurrence of any event contemplated by paragraph B.5(b) above; or

 (iv) Morgan Stanley has received notice from Seller to terminate the Sales Plan in accordance with paragraph D.3 below. 
 5. (a) Seller agrees to deliver the Stock to be sold pursuant to this Sales Plan (with the amount to be estimated by Seller in good faith, if the
Interim Sale Amount is designated as an aggregate dollar amount) (the “Plan Shares”), to the extent such Plan Shares are currently owned by Seller, into an account at Morgan Stanley in the name of and for the benefit of Seller (the
“Plan Account”) prior to the commencement of sales under this Sales Plan. 
 Morgan Stanley agrees to notify Seller promptly if at
any time during the Plan Sales Period the number of shares of Stock so delivered to the Plan Account is less than the number of Plan Shares remaining to be sold pursuant to this Sales Plan (not including shares of Stock underlying the Options
described in subparagraph (b) below). Upon such notification, Seller agrees to deliver promptly to the Plan Account the number of shares of Stock necessary to eliminate this shortfall. 
 (b) If the Sales Plan covers Options and Exhibit C is applicable, Seller agrees to make appropriate arrangements with the Issuer and its transfer agent
and stock plan administrator to permit Morgan Stanley to furnish notice to the Issuer of the exercise of the Options and to have underlying shares delivered to Morgan Stanley as necessary to effect sales under this Sales Plan. Seller hereby
authorizes Morgan Stanley to serve as Seller’s agent and attorney-in-fact and, in accordance with the terms of this Sales Plan, to exercise the Options. Seller agrees to complete, execute and 
  

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 deliver to Morgan Stanley Stock Option Cashless Exercise Forms, in the form attached hereto as Exhibit G, for the
exercise of Options pursuant to this Sales Plan at such times and in such numbers as Morgan Stanley shall request. Stock received upon exercise of Options shall be delivered to the Plan Account. 
 (c) Morgan Stanley shall withdraw Stock from the Plan Account in order to effect sales of Stock under this Sales Plan. 
 If the Sales Plan covers Options and Exhibit C is applicable, and on any day that sales are to be made under this Sales Plan the number of shares of
Stock in the Plan Account is less than the number of shares to be sold on such day, Morgan Stanley shall exercise a sufficient number of Options to effect such sales in the manner specified in Exhibit C under “Manner of Exercising
Options”. Morgan Stanley shall in no event exercise any Option if at the time of exercise the exercise price of the Option is equal to or higher than the market price of the Stock. Morgan Stanley shall, in connection with the exercise of
Options, remit to the Issuer the exercise price thereof along with such amounts as may be necessary to satisfy withholding obligations. These amounts shall be deducted from the proceeds of sale of the Stock, together with interest thereon computed
in accordance with Morgan Stanley’s customary practices. 
 (d) To the extent that any Stock remains in the Plan Account after the end
of the Plan Sales Period or upon termination of this Sales Plan, Morgan Stanley agrees to return such Stock promptly to the Issuer’s transfer agent for relegending to the extent that such Stock would then be subject to transfer restrictions in
the hands of the Seller. 
 6. Morgan Stanley shall in no event effect any sale under this Sales Plan if the Stock to be sold is not in the
Plan Account or underlying an Option that is exercised in accordance with the terms of this Sales Plan on the day of such sale. 
 7. Morgan
Stanley may sell Stock on any national securities exchange, in the over-the-counter market, on an automated trading system or otherwise. Seller agrees that if Morgan Stanley is a market maker or dealer in the Stock at the time that any sale is to be
made under this Sales Plan, Morgan Stanley may, at its sole discretion, purchase the Stock from Seller in its capacity as market maker or dealer. 
 8. All references in this Sales Plan to per share stock prices shall be before deducting any commission, commission equivalent, mark-up or differential and other expenses of sale. 
 9. Seller may instruct Morgan Stanley to sell or purchase shares of Stock other than pursuant to this Sales Plan. The parties hereto agree that any such
sale or purchase transaction (i) will not be deemed to modify this Sales Plan unless Seller so requests in writing in accordance with paragraph D.1 below and (ii) will be given by Seller to Morgan Stanley only if such transaction does not
contravene any of the representations, warranties or covenants set forth in Section B of this Sales Plan. 
 D. Amendment; Termination

 1. This Sales Plan may be amended by Seller only upon the written consent of Morgan Stanley and receipt by Morgan Stanley of the
following documents, each dated as of the date of such amendment: 
 (i) a representation signed by the Issuer substantially in the form of
Exhibit D hereto, 
 (ii) a certificate signed by Seller certifying that the representations and warranties of Seller contained in this Sales
Plan are true at and as of the date of such certificate as if made at and as of such date, and 
 (iii) a seller representation letter
completed and executed by Seller substantially in the form of Exhibit B hereto. 
 2. In no event may Seller modify or otherwise alter this
Sales Plan if Seller has received notice of the imposition of, or Seller is otherwise aware of the actual or approximate beginning or ending dates of, any existing or impending “blackout period” pertaining to the Issuer’s securities
in individual account plans maintained by the Issuer, as defined by Rule 100(b) of Regulation BTR issued by the SEC, and any amendments thereto. 
 3. (a) This Sales Plan may be suspended or terminated by Seller at any time upon one days prior written notice sent to Morgan Stanley’s PDP Trading Desk by overnight mail or by facsimile at the address and fax number set forth in
paragraph F.4 below. Seller agrees that Seller shall not suspend or terminate this Sales Plan except upon consultation with Seller’s own legal advisors. 
 (b) This Sales Plan shall be suspended or, at Morgan Stanley’s option, terminated, if Morgan Stanley receives notice from the Issuer of the occurrence of any event contemplated by paragraph 3 of the certificate
set forth as Exhibit D hereto. 
 4. Seller agrees that Morgan Stanley will execute this Sales Plan in accordance with its terms and will not
be required to suspend or terminate any sales of the Stock unless Morgan Stanley has received notice from Seller or the Issuer in accordance with paragraph D.3 above at least one day prior to the date on which this Sales Plan is to be suspended or
terminated. 
 E. Indemnification; Limitation of Liability 
 1. (a) Seller agrees to indemnify and hold harmless Morgan Stanley and its directors, officers, employees and affiliates from and against all claims, losses, damages and liabilities (including, without
limitation, any legal or other expenses reasonably incurred in connection with defending or 
  

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 investigating any such action or claim) (collectively, “Losses”) arising out of or attributable to this Sales
Plan, including, without limitation, any breach by Seller of this Sales Plan (including Seller’s representations and warranties hereunder) or any violation by Seller of applicable laws or regulations; provided, however, that the indemnification
provisions of this paragraph E.1.(a) shall not apply in the case of any claims, losses, damages or liabilities resulting from Morgan Stanley’s gross negligence or willful misconduct. Seller will reimburse Morgan Stanley for any and all advance
fees, costs and expenses of any kind incurred by Morgan Stanley as a result of such Losses. This indemnification shall survive termination of this Sales Plan. 
 (b) Notwithstanding any other provision hereof, neither party shall be liable to the other for: 
 (i) any special, indirect, punitive, exemplary or consequential damages, or incidental losses or damages of any kind, even if advised of the possibility of such losses or damages or if such losses or damages could have been reasonably
foreseen, or 
 (ii) any failure to perform or to cease performance or any delay in performance that results from a cause or
circumstance that is beyond its reasonable control, including but not limited to failure of electronic or mechanical equipment, strikes, failure of common carrier or utility systems, outbreak or escalation of hostilities or other crisis or calamity,
severe weather, market disruptions, material disruptions in securities settlement, payment or clearance services or other causes commonly known as “acts of God”. 
 F. General 
 1. Proceeds from each sale of Stock effected under the Sales Plan will be
delivered to the account of Seller less any commission, commission equivalent, mark-up or differential and other expenses of sale to be paid to Morgan Stanley, provided that any commission hereunder shall be as specified in Exhibit B. 
 2. Seller and Morgan Stanley acknowledge and agree that this Sales Plan is a “securities contract,” as such term is defined in
Section 741(7) of Title 11 of the United States Code (the “Bankruptcy Code”), entitled to all of the protections given such contracts under the Bankruptcy Code. 
 3. This Sales Plan constitutes the entire agreement between the parties with respect to this Sales Plan and supercedes any prior agreements or
understandings with regard to the Sales Plan. 
 4. All notices to Morgan Stanley under this Sales Plan shall be given to Morgan
Stanley’s PDP Administration Unit in the manner specified by this Sales Plan by facsimile at 201-200-2979 or by certified mail to the address below: 
 Morgan Stanley DW Inc. 
 Harborside Financial Center 
 Plaza III, 1st Floor 
 Jersey City, NJ 07311 
 Attn: PDP Administration Services 
 5. Seller’s rights and obligations under this Sales Plan may not be assigned or delegated without the written permission of Morgan Stanley. 
 6. This Sales Plan may be signed in any number of counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument. 
 7. If any provision of this Sales Plan is or becomes inconsistent with any applicable present or future law, rule or regulation, that provision will be
deemed modified or, if necessary, rescinded in order to comply with the relevant law, rule or regulation. All other provisions of this Sales Plan will continue and remain in full force and effect. 
 8. This Sales Plan shall be governed by and construed in accordance with the internal laws of the State of New York and may be modified or amended only
by a writing signed by the parties hereto. 
  

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 IN WITNESS WHEREOF, the undersigned have signed this Sales Plan on the date specified below12. 
  

			
	 SELLER

		
	 By:
	 	 /s/ Joseph von Rosenberg III

	 Name:
	 	 Joseph von Rosenberg III

	 Date:
	 	 December 5, 2006

	
	 MORGAN STANLEY DW INC.

		
	 By:
	 	 /s/ Richard J. Fischer

	 Name:
	 	 Richard J. Fischer

	 Title:
	 	 Vice President

	 Date:
	 	 December 5, 2006

  

	1	Seller is advised that Morgan Stanley’s obligations under this Sales Plan will not take effect unless and until this Sales Plan is approved and executed by
Morgan Stanley. 

	2	Note: If this Sales Plan involves the sale of stock that is restricted under Rule 144 and/or Section 16, Morgan Stanley may not execute this Sales Plan until
the firm’s standard restricted stock due diligence process for such securities has been completed. 

  

 6Letter Agreement

 Exhibit 10.1 
 [Charlotte Russe letterhead] 
 December 5, 2006 
 Daniel T. Carter 
 Dear Dan: 
 This letter confirms our discussions and agreement with respect to your resignation of your employment with Charlotte Russe Holding, Inc.
and its subsidiaries (the “Company”), and your provision of associated transition services to the Company in the interim (the “Agreement”). When signed by you, this agreement shall supersede and be in
place of any prior agreements or understandings between us (including without limitation the offer letter between us dated August 10, 2005) and shall be the sole and exclusive agreement between us pertaining to your employment with the Company.

 Resignation. You hereby submit, and the Company hereby accepts, your resignation of your position as Executive Vice
President, Chief Financial Officer (“CFO”) and all other positions held by you with the Company (including any of its subsidiaries) effective on the earlier of: i) June 30, 2007 or ii) the date on which a new CFO
commences employment with the Company (such earlier date, the “Resignation Date”). 
 Extension of Service.
You may elect to extend your employment with the Company through and including September 29, 2007 (the “Extension Date”) on the earlier of the following two dates, as applicable (provided that you then remain
employed by the Company): i) on a date within five (5) days following the date upon which a new CFO commences employment with the Company, or ii) on June 30, 2007, in the event a new CFO has not commenced employment with the Company by
such date. 
 Duties. Prior to the hiring of a new CFO, you will continue to serve as the Company’s CFO, and,
additionally you will assist the Company in hiring and successfully completing the transition to a new CFO who will assume the duties you currently perform. Following the hiring of a new CFO you will, as directed by the Company’s Chief
Executive Officer (the “CEO”), assist in transition-related projects or such other projects as designated by the CEO. You will continue to perform and discharge your duties and responsibilities faithfully, diligently and to
the best of your ability. You will devote substantially all of your working time and efforts to the business and affairs of the Company. 
 Base Salary. Your base salary will continue to be paid at the rate of $338,000.00 gross per year, paid on a bi-weekly basis. All payments under this paragraph or any other paragraph of this Agreement will be made in accordance
with the regular payroll practices of the Company, reduced by applicable federal and state withholdings. 
 Performance Bonus.
You will not be eligible for an annual bonus for fiscal year 2007. 
  

 1. 

 Benefits. You will continue to accrue paid vacation (according to the Company’s stated
vacation policy), to be taken at such times as you and Company mutually agree upon. You will be eligible to participate in all benefit and welfare plans made generally available to senior management executives of the Company, as in effect from time
to time, subject to Company’s right to modify or terminate such plans or benefits at any time with respect to employees of similar rank and title. You shall be eligible to take all accrued and unused vacation and/or paid time off prior to
either the Resignation Date or the Extension Date, as applicable. 
 Separation Pay. Provided that you do not elect to extend
your employment as specified above and provided that within thirty (30) days following the Resignation Date you deliver to the Company a fully effective Release and Waiver in the form attached as Exhibit A hereto, you will receive separation
pay equivalent to your base salary set forth above for a period of six (6) months following the Resignation Date. In the event that you elect to extend your employment as specified above, then, provided that within thirty (30) days
following the Extension Date you deliver to the Company a fully effective Release and Waiver in the form attached as Exhibit A hereto, you will receive separation pay equivalent to your base salary for the period, if any, commencing on the day
following the Extension Date and ending on the date six (6) months following the Resignation Date. 
 COBRA Reimbursement.
During any period in which you are entitled to receive separation pay as described above, provided that you timely elect continued insurance coverage under COBRA, the Company will reimburse you for qualifying health insurance premiums paid by you
during such period for you and your immediate family to the same extent the Company previously paid such premiums under its policies in effect on the Resignation Date or the Extension Date, as applicable, subject to the Company’s receipt of
appropriate documentation evidencing such continuation payments. 
 Application of Internal Revenue Code Section 409A. If
the Company determines that any of the post-employment payments provided by this Agreement fail to satisfy the distribution requirements of Section 409A(a)(2)(A) of the Internal Revenue Code as a result of Section 409A(a)(2)(B)(i) of the
Internal Revenue Code, the payments shall be delayed to the minimum extent necessary so that such benefits are not subject to the provisions of Section 409A(a)(1) of the Internal Revenue Code. The Company may attach conditions to or adjust the
amounts paid to preserve, as closely as possible, the economic consequences that would have applied in the absence of this paragraph; provided, however, that no such condition or adjustment shall result in the payments being subject to
Section 409A(a)(1) of the Internal Revenue Code. 
 Termination of Employment. Notwithstanding anything to the contrary
set forth herein, if the Company terminates your employment for Cause, or you terminate your employment other than as specified above, the Company’s only obligation to you under this Agreement will be to continue to pay your base salary through
the date of termination and pay to you any unused earned vacation as of the last date of your employment. 
 For purposes of this Agreement,
“Cause” means willful breach of duty, gross neglect of duty, gross carelessness or gross misconduct in the performance of your duties; (ii) commission of a felony or other crime involving moral turpitude;
(iii) commission of any act of dishonesty involving the Company; (iv) the unauthorized disclosure of material privileged or confidential information related to the 

  

 2. 

 
Company or its employees, except as may be compelled by legal process or court order; (v) the commission of a willful act or omission which violates
material Company policy, procedures, or otherwise constitutes unethical or detrimental business conduct; (vi) alcohol or controlled substance abuse that materially impacts the performance of your duties; or (vii) any other willful act or
omission which, in the opinion of the Board of Directors of the Company has, or is reasonably likely to have, a material adverse impact upon the Company or its reputation; provided, however, that with respect to the first occurrence of any of
the acts specified in clauses (i), (v), (vii) and (vii) above, you will have an opportunity to cure such act, violation or condition after receiving written notice from the Company. The amount of time to cure such act, violation or
condition shall be in the sole discretion of the Company. 
 Restricted Activities. During any time you receive compensation
from the Company pursuant to this Agreement you will not, directly or indirectly, i) be connected as an officer, employee, Board member, consultant, advisor, owner or otherwise (whether or not for compensation) with any business which directly
competes with the Company (including any of its subsidiaries) in the junior fast fashion retail sector, or ii) solicit, induce, or otherwise encourage any employee of the Company (including any of its subsidiaries) to leave or terminate such
employment. Other than in connection with the performance of your duties for the Company, you will not disclose to any person or entity any information obtained by you while in the employ of the Company the disclosure of which may be adverse to the
interests of the Company or use any such information to the detriment of the Company. You understand that your commitments in this paragraph are in exchange for the Company’s commitments to you in this Agreement, and that the restrictions
contained in the preceding two sentences apply in the event you continue to receive compensation from the Company after your employment terminates, regardless of the reason for such termination. In the event you violate your commitments in this
paragraph, your rights to continued payments from the Company pursuant to this Agreement shall immediately terminate and no longer be of any force or effect. 
 Miscellaneous. The headings in this Agreement are for convenience only and do not affect the meaning hereof. This Agreement constitutes the entire agreement between the Company and you, and supersedes
any prior communications, agreements and understandings, whether written or oral, with respect to your employment and compensation and all matters pertaining thereto. This Agreement shall be governed by and construed in accordance with the law of
the State of California. 
 Disputes. Any dispute between the Company and you concerning the meaning or interpretation of this
Agreement, or any alleged breach thereof, shall be resolved in a binding arbitration to be conducted in San Diego, California, before a single neutral arbitrator to be selected by the parties from a list of arbitrators on the Employment Dispute
Panel of the Judicial Arbitration and Mediation Service. Arbitration shall be initiated by the party desiring arbitration by serving written notice to the other. Said arbitration shall be conducted no later than 120 days following the date of said
written notice, absent the written agreement of the parties otherwise. The prevailing party in such an arbitration shall be entitled to costs of suit and attorneys’ fees, in addition to any award by the arbitrator. 
  

 3. 

 Partial Invalidity. If the application of any provision of this Agreement is held invalid
or unenforceable, the remaining provisions shall not be affected, but will continue to be given full force and in effect as if the part held invalid or unenforceable bad not been included. 
 Acceptance. In accepting the terms and conditions reflected in this Agreement, you represent that you have not relied on any agreement or representation, oral or written, express or
implied, that is not set forth expressly in this Agreement. If this Agreement reflects your understanding, please sign and return a copy to me, whereupon it shall become a binding contract between the Company and you. 
  

			
	 Very truly yours,

	
	 Charlotte Russe Holding, Inc.

		
	 By:
	 	 /s/ Mark A. Hoffman

		 	 Mark A. Hoffman,
President and Chief Executive Officer

  

					
	 Accepted and Agreed To:
	 		 	
			
	 /s/ Daniel T. Carter
	 		 	 Date: 12/5/06

	 Daniel T. Carter
	 		 	

  

 4. 

 EXHIBIT A 
 RELEASE AND WAIVER OF CLAIMS 
 In consideration of the payments and other benefits
set forth in that certain letter agreement dated December 5, 2006 (the “Letter Agreement”), to which this form is attached, I, Daniel T. Carter, hereby furnish Charlotte Russe Holding, Inc. and its subsidiaries and affiliates
(the “Company”), with the following release and waiver (“Release and Waiver”). 
 In
exchange for the consideration provided to me by the Letter Agreement that I am not otherwise entitled to receive, I hereby generally and completely release the Company and its directors, officers, employees, shareholders, partners, agents,
attorneys, predecessors, successors, parent and subsidiary entities, insurers, Affiliates, and assigns from any and all claims, liabilities and obligations, both known and unknown, that arise out of or are in any way related to events, acts,
conduct, or omissions occurring prior to my signing this Release and Waiver. This general release includes, but is not limited to: (1) all claims arising out of or in any way related to my employment with the Company or the termination of that
employment; (2) all claims related to my compensation or benefits from the Company, including, but not limited to, salary, bonuses, commissions, vacation pay, expense reimbursements, severance pay, fringe benefits, stock, stock options, or any
other ownership interests in the Company; (3) all claims for breach of contract, wrongful termination, and breach of the implied covenant of good faith and fair dealing; (4) all tort claims, including, but not limited to, claims for fraud,
defamation, emotional distress, and discharge in violation of public policy; and (5) all federal, state, and local statutory claims, including, but not limited to, claims for discrimination, harassment, retaliation, attorneys’ fees, or
other claims arising under the federal Civil Rights Act of 1964 (as amended), the federal Americans with Disabilities Act of 1990, the federal Age Discrimination in Employment Act of 1967 (as amended) (“ADEA”), and the California
Fair Employment and Housing Act (as amended). 
 I also acknowledge that I have read and understand Section 1542 of the
California Civil Code which reads as follows: “A general release does not extend to claims which the creditor does not know or suspect to exist in his favor at the time of executing the release, which if known by him must have materially
affected his settlement with the debtor.” I hereby expressly waive and relinquish all rights and benefits under that section and any law of any jurisdiction of similar effect with respect to any claims I may have against the Company.

 I acknowledge that, among other rights, I am waiving and releasing any rights I may have under ADEA, that this Release and
Waiver is knowing and voluntary, and that the consideration given for this Release and Waiver is in addition to anything of value to which I was already entitled as an executive of the Company. If I am 40 years of age or older upon execution of this
Release and Waiver, I further acknowledge that I have been advised, as required by the Older Workers Benefit Protection Act, that: (a) the release and waiver granted herein does not relate to claims under the ADEA which may arise after this
Release and Waiver is executed; (b) I should consult with an attorney prior to executing this Release and Waiver; (c) I have twenty-one (21) days in which to consider this Release and Waiver (although I may choose voluntarily to
execute this Release and Waiver earlier); (d) I have seven (7) days following the execution of this Release and Waiver to revoke my consent to this Release and Waiver; and (e) this Release and Waiver shall not be effective until the
eighth day after I execute this Release and Waiver and the revocation period has expired. 
  

 5. 

 This Release and Waiver constitutes the complete, final and exclusive embodiment of the
entire agreement between the Company and me with regard to the subject matter hereof. I am not relying on any promise or representation by the Company that is not expressly stated herein. This Release and Waiver may only be modified by a writing
signed by both me and a duly authorized officer of the Company. 
  

									
					
	 Date:
	 	  	 		 	 By:
	 	  
		 		 		 		 	 DANIEL T. CARTER

  

 6.

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