Document:

exh48jan302010.htm

  

  

  

EXHIBIT 4.8

AMENDMENT NO. 1 TO

THIRD AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT

This Amendment No. 1 to Third Amended and Restated Loan and Security Agreement, dated as of December 19, 2009 (this “Amendment”), is entered into by and among Charming Shoppes, Inc., a Pennsylvania corporation (“Parent”), Charming Shoppes of Delaware, Inc., a Pennsylvania corporation (“CS Delaware”), CSI Industries, Inc., a Delaware corporation (“CSI”), FB Apparel, Inc., an Indiana corporation (“FB Apparel”), Catherines Stores Corporation, a Tennessee corporation (“Catherines”), Lane Bryant, Inc., a Delaware corporation (“LB” and, together with Parent, CS Delaware, CSI, FB Apparel and Catherines hereinafter referred to individually as a “Borrower” and collectively as “Borrowers”), those certain Subsidiaries of Parent parties to the Loan Agreement (as hereinafter defined) as guarantors (collectively, “Guarantors”), the financial institutions from time to time parties to the Loan Agreement (as hereinafter defined) as lenders (each individually, a “Lender” and collectively, “Lenders”) and Wells Fargo Retail Finance, LLC, a Delaware limited liability company, in its capacity as agent for Lenders (in such capacity, “Agent”).

W I T N E S S E T H:

WHEREAS, Agent, Lenders, Borrowers and Guarantors entered into financing arrangements pursuant to which Lenders have made and provided and hereafter may make and provide, upon certain terms and conditions, loans and advances and other financial accommodations to Borrowers as set forth in the Third Amended and Restated Loan and Security Agreement, dated July 31, 2009, by and among Agent, Lenders, Borrowers and Guarantors (as the same now exists and may hereafter be amended, modified, supplemented, extended, renewed, restated or replaced, the “Loan Agreement”, and the other agreements, documents and instruments referred to therein or any time executed and/or delivered in connection therewith or related thereto, including this Amendment (all of the foregoing, together with the Loan Agreement, as the same now exist or may hereafter be amended, modified, supplemented, extended, renewed, restated or replaced, being collectively referred to herein as the “Financing Agreements”);

WHEREAS, Borrowers have requested that Agent and Lenders agree to make certain amendments to the Loan Agreement, and Agent and Lenders are willing to agree to such requests, subject to the terms and conditions contained herein;

WHEREAS, the parties hereto desire to enter into this Amendment to evidence and effectuate such amendments, subject to the terms and conditions and to the extent set forth herein;

NOW, THEREFORE, in consideration of the premises and covenants set forth herein and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows:

1. Definitions.

  

  

  

(a) Interpretation.  Capitalized terms used herein which are not otherwise defined herein shall have the respective meanings ascribed thereto in the Loan Agreement.

(b) Amendment to Definition of Cash Equivalents.  The definition of “Cash Equivalents” in Section 1.31 of the Loan Agreement is hereby amended by (a) deleting “and” appearing at the end of clause (g) of such definition; and (b) deleting clause (h) from such definition in its entirety and replacing it with the following:

“(h) Indebtedness with a maturity date of one (1) year or less from the date acquired by an Obligor and which is issued by the United States of America (which shall include for this purpose the United States Department of the Treasury); and (i) investments in money market funds and mutual funds which invest substantially all of their assets in securities of the types described in clauses (a) through (h) above.”

2. Use of Private Label Credit Cards.  Section 9.23(a) of the Loan Agreement is hereby amended by deleting such Section in its entirety and replacing it with the following:

“(a)  Upon the occurrence of an Event of Default described in Section 10.1(j) hereof in respect of any Credit Card Issuer or Credit Card Processor issuing or processing any Private Label Credit Card, at the request of Agent, Obligors shall cease accepting any such Private Label Credit Card for sales of merchandise to customers.”

3. Events of Default.  Section 10.1(j) of the Loan Agreement is hereby amended by deleting clause (i) thereof in its entirety and replacing it with the following:

“(i) withholds payment of amounts otherwise payable to any Obligor to fund a reserve account or otherwise hold as collateral, or shall require any Obligor in accordance with its agreement with such Obligor to pay funds into a reserve account or for such Credit Card Issuer or Credit Card Processor to otherwise hold as collateral, in any such case in an amount exceeding $15,000,000 in any individual instance or $30,000,000 in the aggregate;”.

4. Additional Representations, Warranties and Covenants.  Borrowers and Guarantors, jointly and severally, represent, warrant and covenant with and to Agent and Lenders as follows, which representations, warranties and covenants are continuing and shall survive the execution and delivery hereof, and the truth and accuracy of, or compliance with each, together with the representations, warranties and covenants in the other Financing Agreements, being a continuing condition of the making of Loans by Lenders to Borrowers:

(a) This Amendment and the other agreements, documents and instruments executed and/or delivered by any Borrower or Guarantor in connection herewith (together with this Amendment, the “Amendment Documents”) have been duly authorized, executed and delivered by all necessary action on the part of each Borrower and Guarantor which is a party hereto and, if necessary, their respective members or stockholders, as the case may be, and is in full force and effect as of the date hereof, as the case may be, and the agreements and obligations of Borrowers and Guarantors contained herein or therein constitute legal, valid and binding obligations of Borrowers and Guarantors enforceable against them in accordance with their

  

2

  

terms, except as such enforceability may be limited by (i) bankruptcy, insolvency, reorganization, moratorium or similar laws of general applicability affecting the enforcement of creditors’ rights and (ii) the application of general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law).

(b) Neither the execution, delivery and performance of this Amendment or any other Amendment Document in connection therewith, nor the consummation of any of the transactions contemplated herein or therein (i) are in any material respect in contravention of law or any indenture, agreement or undertaking to which any Borrower or Guarantor is a party or by which any Borrower or Guarantor or its property are bound or (ii) violates any provision of the Certificate of Incorporation, Certificate of Formation, Operating Agreement, By-Laws or other governing documents of any Borrower or Guarantor.

(c) All of the representations and warranties contained herein, in the Loan Agreement and the other Financing Agreements are true and correct in all material respects with the same effect as though such representations and warranties had been made on and as of the date hereof and after giving effect hereto, except (i) to the extent that any such representations or warranties expressly relate solely to an earlier date (in which case such representations or warranties shall have been true and correct on and as of such earlier date) and (ii) with respect to any changes in the representations and warranties resulting from any actions, sales, mergers, acquisitions, dispositions or other transactions permitted by the Loan Agreement or consented to by the Required Lenders, Supermajority Lenders or all Lenders, as applicable.

(d) As of the date hereof, no Default or Event of Default has occurred and is continuing.

5. Conditions Precedent.  The provisions contained herein shall be effective as of the date hereof, but only upon the satisfaction of each of the following conditions precedent, in a manner satisfactory to Agent:

(a) Agent shall have received an original of this Amendment, duly authorized, executed and delivered by Borrowers, Guarantors and the Required Lenders; and

(b) no Default or Event of Default shall have occurred and be continuing.

6. Effect of this Amendment; Entire Agreement.  Except as expressly set forth herein, no other changes or modifications to the Financing Agreements are intended or implied, and in all other respects the Financing Agreements are hereby specifically ratified, restated and confirmed by all parties hereto as of the date hereof.  This Amendment and any instruments or documents delivered or to be delivered in connection herewith and therewith, represent the entire agreement and understanding concerning the subject matter hereof and thereof between the parties hereto, and supersede all other prior agreements, understandings, negotiations and discussions, representations, warranties, commitments, proposals, offers and contracts concerning the subject matter hereof, whether oral or written.  To the extent of conflict between the terms of this Amendment and the other Financing Agreements, the terms of this Amendment shall control.  The Loan Agreement and this Amendment shall be read and construed as one agreement.

  

3

  

7. Further Assurances.  The parties hereto shall execute and deliver such additional documents and take such additional action as may be reasonably necessary or desirable to effectuate the provi­sions and purposes of this Amendment.

8. Governing Law.  The validity, interpretation and enforcement of this Amendment and any dispute arising out of the relationship between the parties hereto whether in contract, tort, equity or otherwise, shall be governed by the internal laws of the State of New York but excluding any principles of conflicts of law or other rule of law that would cause the application of the law of any jurisdiction other than the laws of the State of New York.

9. Binding Effect.  This Amendment shall be binding upon and inure to the benefit of each of the parties hereto and their respective successors and assigns.

10. Headings.  The headings listed herein are for conven­ience only and do not constitute matters to be construed in interpreting this Amendment.

11. Counterparts.  This Amendment may be executed in any number of counterparts, but all of such counterparts shall together constitute but one and the same agreement.  In making proof of this Amendment, it shall not be necessary to produce or account for more than one counterpart thereof signed by each of the parties hereto.  This Amendment may be executed and delivered by telecopier or other electronic method of transmission with the same force and effect as if it were a manually executed and delivered counterpart.

12. Partial Invalidity.

If any provision of this Amendment is held to be invalid or unenforceable, such invalidity or unenforceability shall not invalidate this Amendment as a whole, but this Amendment shall be construed as though it did not contain the particular provision held to be invalid or unenforceable and the rights and obligations of the parties shall be construed and enforced only to such extent as shall be permitted by applicable law.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

  

4

  

IN WITNESS WHEREOF, Agent, Lenders, Borrower and Guarantors have caused this Amendment to be duly executed as of the day and year first above written.

	
BORROWERS

	  
	
CHARMING SHOPPES, INC.

	  
	
By: /S/ ERIC M. SPECTER

	
Name: Eric M. Specter

	
Title: Executive Vice President

	  
	  
	
CHARMING SHOPPES OF DELAWARE, INC.

	  
	
By: /S/ ERIC M. SPECTER

	
Name: Eric M. Specter

	
Title: Vice President

	  
	  
	
CSI INDUSTRIES, INC.

	  
	
By: /S/ ERIC M. SPECTER

	
Name:  Eric M. Specter

	
Title: President

	  
	  
	
FB APPAREL, INC.

	  
	
By: /S/ ERIC M. SPECTER

	
Name:  Eric M. Specter

	
Title: President

	  
	  
	
CATHERINES STORES CORPORATION

	  
	
By: /S/ ERIC M. SPECTER

	
Name: Eric M. Specter

	
Title: Vice President

	  
	  
	
LANE BRYANT, INC.

	  
	
By:  /S/ ERIC M. SPECTER

	
Name: Eric M. Specter

	
Title:  Vice President

[SIGNATURES CONTINUED ON NEXT PAGE]

  

5

  

[SIGNATURES CONTINUED FROM PREVIOUS PAGE]

	
GUARANTORS

	  
	
CSPE, LLC

	  
	
By: Charming Shoppes of Delaware, Inc.

	
Its: Sole Member

	  
	
By: /S/ ERIC M. SPECTER

	
Name: Eric M. Specter

	
Title: Vice President

	  
	  
	
CATHERINES PARTNERS-INDIANA, LLP

	  
	
By: Catherines Stores of Indiana, Inc.

	
Its:  Managing Partner

	  
	
By: /S/ ERIC M. SPECTER

	
Name: Eric M. Specter

	
Title:  President

	  
	  
	
CATHERINES PARTNERS-WASHINGTON, G.P.

	  
	
By: Catherines, Inc.

	
Its: Managing Partner

	  
	
By: /S/ ERIC M. SPECTER

	
Name: Eric M. Specter

	
Title: Vice President

	  
	  
	
FOR EACH ENTITY LISTED ON SCHEDULE A HERETO

	  
	
By: /S/ ERIC M. SPECTER

	
Name: Eric M. Specter

	
Title:  Authorized Officer in the capacity shown on

	
Schedule A hereto

[SIGNATURES CONTINUED ON NEXT PAGE]

  

6

  

[SIGNATURES CONTINUED FROM PREVIOUS PAGE]

	
FASHION BUG #2421, LLC

	  
	
By: CSGC, Inc.

	
Its: Sole Member

	  
	
By: /S/ JOHN J. SULLIVAN

	
Name: John J. Sullivan

	
Title: Vice President

	  
	  
	
CATHERINES #5163, LLC

	  
	
By: CSGC, Inc.

	
Its: Sole Member

	  
	
By: /S/ JOHN J. SULLIVAN

	
Name:   John J. Sullivan

	
Title: Vice President

	  
	  
	
LANE BRYANT #6898, LLC

	  
	
By: CSGC, Inc.

	
Its:  Sole Member

	  
	
By: /S/ JOHN J. SULLIVAN

	
Name: John J. Sullivan

	
Title: Vice President

	  
	
C.S.F. CORP.

	  
	
By: /S/ JOHN J. SULLIVAN

	
Name: John J. Sullivan

	
Title: Vice President

	  
	
CSGC, INC.

	  
	
By: /S/ JOHN J. SULLIVAN

	
Name:  John J. Sullivan

	
Title: Vice President

[SIGNATURES CONTINUED ON NEXT PAGE]

  

7

  

[SIGNATURES CONTINUED FROM PREVIOUS PAGE]

	
CATHERINES C.S.A.C., INC.

	  
	  
	
By: /S/ STEVEN R. WISHNER

	
Name: Steven R. Wishner

	
Title: President

	  
	
CHARMING SHOPPES INTERACTIVE, INC.

	  
	  
	
By: /S/ STEVEN R. WISHNER

	
Name: Steven R. Wishner

	
Title: Vice President

	  
	
C.S.A.C., INC.

	  
	
By: /S/ STEVEN R. WISHNER

	
Name: Steven R. Wishner

	
Title: President

[SIGNATURES CONTINUED ON NEXT PAGE]

  

8

  

[SIGNATURES CONTINUED FROM PREVIOUS PAGE]

	
AGENT AND LENDERS

	  
	
WELLS FARGO RETAIL FINANCE, LLC,

 as Agent and a Lender

	  
	
By: ________________________________

	
Name:

	
Title:

[SIGNATURES CONTINUED ON NEXT PAGE]

  

9

  

[SIGNATURES CONTINUED FROM PREVIOUS PAGE]

	
BANK OF AMERICA, N.A.,

	
as a Lender

	  
	
By: ________________________________

	
Name:

	
Title:

[SIGNATURES CONTINUED ON NEXT PAGE]

  

10

  

[SIGNATURES CONTINUED FROM PREVIOUS PAGE]

	
GMAC COMMERCIAL FINANCE LLC,

	
as a Lender

	  
	
By: ________________________________

	
Name:

	
Title:

[SIGNATURES CONTINUED ON NEXT PAGE]

  

11

  

[SIGNATURES CONTINUED FROM PREVIOUS PAGE]

	
U.S. BANK NATIONAL ASSOCIATION,

	
as a Lender

	  
	
By: ________________________________

	
Name:

	
Title:

[SIGNATURES CONTINUED ON NEXT PAGE]

  

12

  

[SIGNATURES CONTINUED FROM PREVIOUS PAGE]

	
JPMORGAN CHASE BANK, N.A.,

	
as a Lender

	  
	
By: ________________________________

	
Name:

	
Title:

[SIGNATURES CONTINUED ON NEXT PAGE]

  

13

  

[SIGNATURES CONTINUED FROM PREVIOUS PAGE]

	
BARCLAYS BANK PLC,

	
as a Lender

	  
	
By: ________________________________

	
Name:

	
Title:

  

14

  

SCHEDULE A

  

  

  

SCHEDULE Bexh10258jan302010.htm

  

  

  

 

EXHIBIT 10.2.58

June 30, 2008

Brian Woolf

222 Weston Road

Weston, CT 06883

Dear Brian:

On behalf of Charming Shoppes, Inc., I am pleased to extend to you this offer of employment to serve in the position of President of Lane Bryant and Cacique, located in Columbus, Ohio.  In this position you will report directly to Dorrit Bern, CEO and President. Your starting date will be mutually agreed upon in conversations with Dorrit.  We have enjoyed getting acquainted with you and are enthusiastic about the skills, ideas and potential that you bring to our organization.  Likewise, we are confident that you will find Charming Shoppes, Inc., an environment in which excellence is recognized and rewarded.

Listed below is a summary of the key terms of your annual compensation package.  Additional detail follows this summary:

	
·  

	
An annualized base salary: $725,000

	
·  

	
Fiscal Year 2009 Target Bonus: 50% of base which would equate to a target bonus opportunity of Bonus Target $362,500

	
·  

	
An auto allowance totaling of $12,600 per year

	
·  

	
An annual grant of equity awards.   Annual equity grants are made in the Spring of each year, and are structured in the same manner and subject to the same vesting requirements as are applicable to equity awards granted contemporaneously to other officers of similar standing.  The number of equity awards granted in any given year may adjust up or down based upon the approval of the Compensation Committee of the Board of Directors.  For purpose of illustration only and without any assurance that an equity award of similar value will be granted in the future, the values of the most recent annual awards for officers of similar standing ranged from approximately $400,000 to $600,000.  Neither the value nor the number of the equity awards comprising the annual grant are guaranteed by the Company. 

The total value of this package with the bonus level achieved at target and an equity award at the middle of the range illustrated above would be $1,600,100.

In addition, because the Company places a high value on your capabilities, we are pleased to provide you with:

  

1

  

 

Welcome Grant:  Charming Shoppes, Inc. hopes that you will accept our offer of employment set forth in this letter.  As an inducement to you to accept this offer, we commit to you that CSI Management, will recommend to the Compensation Committee of the Board of Directors (the “Compensation Committee”) that you be granted Stock Appreciation Rights (“SARs”), having an aggregate value at the date of grant equal to $500,000.  The SARs will vest at one-third equal shares on the 3rd, 4th and 5th anniversaries of the date of grant, subject to accelerated vesting in limited circumstances.  The SARs will be settled by delivery of shares at the time of vesting.

When the Compensation Committee approves the grant, the grant will be effective at the date of Compensation Committee approval or a date shortly thereafter specified by the Compensation Committee.  The number of SARs granted will equal the dollar value of the grant divided by the Black-Scholes value of a SAR on the date of grant.  The approved grant will be made outside of any existing equity compensation plan of the Company, in reliance on NASDAQ Marketplace Rule 4350(i) (1) (A) (iv).  That rule requires that we issue a press release announcing the grant shortly after it is effective.  Under NASDAQ rules, we may be required to identify you by name in the press release and provide details regarding the grant.

The Company will also contribute toward a robust selection of benefits that are part of your Total Rewards package, and which are outlined in the Benefits-at-a-Glance brochure which will be included with this letter.  Please understand that eligibility for benefits may be triggered by your starting date of employment and any adjustments to the effective dates of coverage will be made and confirmed with you, once we have established your actual employment date.  Listed below are additional details of your offer, benefits, and paid-time-off.

BENEFITS:   You will be eligible to participate in your choice of the Company's medical options, prescription, vision and dental programs as of the first of the month following 30 days of employment.  The Company has established a Premium Conversion (S125) Plan so that you are able to pay your portion of the coverage with pre-tax dollars.  You will receive an enrollment guidebook detailing the plan provisions and related costs approximately two weeks prior to your eligibility date for coverage.  Should you decide to forego participation in the Company health related coverage plans during your enrollment time, you may re-consider your option to do so during the open enrollment period which has typically been held in November of each year with coverage effective at the beginning of January. Short-term and long-term disability, life insurance and other optional benefit offerings will go into effect after the required waiting periods.

Paid-Time-Off:  In calendar year 2008, you will be eligible to participate in the Company Paid Time Off plan with 13 PTO days available, on a prorated basis.  Under the Company’s PTO Plan you may use a PTO day to cover vacation time, sick days, personal days, etc.  The number of days you receive under the Company PTO plan does not include Paid Holidays.  The Company recognizes six (6) paid holidays (Memorial Day, Independence Day, Labor Day, Thanksgiving, Christmas, and New Years Day).  In subsequent years you will continue to participate in the PTO plan with 26 PTO days until such time as you earn additional days, based on years of service.

  

2

  

 

Flexible Perquisite Allowance:  You will have a flexible perquisite allowance of $10,000 per year to spend on specified items such as financial counseling and wellness expenses. The details of this specific program will be more fully described upon commencement of your employment.

Annual Review: The Company customarily reviews salaries at the beginning of each fiscal year.  A salary review will be done in accordance with the regular Executive Salary Review process and will take place in March 2009.  The performance review would be completed by your immediate supervisor and you will have the opportunity to complete a self-appraisal of your performance to review prior to completion of the final appraisal rating.

Bonus Program:  For fiscal year 2010, beginning February 3, 2009, you will be eligible to participate in the Executive Incentive Plan with a targeted bonus opportunity of fifty percent (50%) of your base salary.  Plan design is subject to review and approval each year by the Company’s Compensation Committee.  Under the current plan design, the Executive Incentive Plan is built upon the Company and/or a division achieving a financial target established for that fiscal year, in combination with your achievement of target performance goals.  The Company does not guarantee bonus payments.  The plan typically has provided for a reduced bonus payout should the Company and/or division results reach a minimum level as determined by the Compensation Committee.  The payment level increases as the Company  and/or a division approaches the Targeted level and should the Company  and/or division surpass the Targeted level, your bonus payout may increase up to one hundred percent (100%) of your base salary based upon the business performance and you personally achieving target performance goals set for you.  Shortly after you start with the Company you will receive additional information about this program.

Long Term Incentive:  You will be awarded a “welcome” and an inducement grant of stock as outlined previously in this offer letter.  The SARs awarded to you will vest as follows: one-third equal shares on the 3rd, 4th and 5th anniversaries of the date of award. 

In addition to this welcome award, and inducement grant, you will be eligible to participate in the Long Term Incentive Program (LTIP), under which the Company will provide you with an annual equity based award beginning in Spring 2009 and in subsequent years as determined by the LTIP approved by the Company’s Compensation Committee.  While subject to review each year by the Company’s Compensation Committee and Board of Directors, the annual LTIP program for individuals at your position level with the Company, currently has both performance based, as well as a time based equity components of the award.  Each year, plan details are outlined to you in a communication packet prepared specifically for you and you will be able to access information about your LTIP balances through our Fidelity Investment partner which handles administration and account management of the stock awards, employee stock purchase plans, and our 401(k) and Non Qualified (NQ) Variable Deferred Compensation plan accounts.  As you are aware, stock prices may move up or down depending on market activity and the Company’s performance. Grant “value” of equity awards is determined at the time of approval by the Company’s Compensation Committee.  Actual value at the time the restrictions lapse or at vesting will be determined by the market performance of the stock and are not guaranteed by the Company.

  

3

  

 

401(k):  After the required waiting periods, you will be eligible to participate in the Company’s 401(k) Retirement Program which is administered by Fidelity Investment.  Based upon your position and compensation level, when you have reached the eligibility date to place “new” money into the Company’s 401(k) plan, you will be restricted to a contribution level of no more than three percent (3%) of salary.  You will be eligible to roll-over any money from another qualified plan into the Company’s 401(k) plan upon your hire date.  Please keep in mind that eligibility to place new money into the plan occurs earlier than the matching Company contributions into the plan. The Benefit Service center staff will be available to answer any questions you may have with respect to these benefits.

Supplemental Executive Retirement Plan:  As a member of our executive leadership group you will become a participant in the Company’s Supplemental Executive Retirement Program, (SERP), upon commencement of your employment with the Company.  The full details of the SERP will be provided to you when you join the Company.  As a long term financial planning vehicle, the Company funds a percentage of your salary and annual bonus each year in the SERP which is subject to a vesting schedule  based upon your age and service with the Company.

Variable Deferred Compensation Plan:  After the commencement of your employment with the Company, you will be eligible to participate in the Company’s Variable Deferred Compensation Plan for Executives.  The details of this plan will be explained to you.  The variable compensation plan for executives is a wrap around restoration plan which restores the Company match which would otherwise be unavailable based on IRS regulations.  Under the Plan you can defer percentages of your base salary and bonus.  The Company match is not available under the Program until the expiration of the same waiting period that is applicable to the 401(k) retirement plan.

Executive Life Insurance Program:  Effective with the commencement of your employment, you will be provided with enrollment information for a supplemental life insurance program that will provide a death benefit of $600,000 conditioned upon the results of any insurance required medial examination.

Auto Allowance: As it is presently designed, you will receive a monthly allowance of one thousand fifty dollars ($1,050.00).  The Company requires all executives covered under this Program to obtain their own motor vehicle insurance, to maintain a record of business usage and to provide that information to the Company’s finance department prior to each year-end.  Auto Allowance awards are paid on a monthly basis and will appear on your paycheck at the beginning of the month.

Relocation:  The Company recognizes that relocation to a new community often takes time and careful consideration of the options regarding where to settle in the greater Columbus area.  Under our relocation policy you will have twelve (12) months to complete the relocation process. Charming Shoppes, Inc. is pleased to partner with Primacy Relocation LLC to handle this important process for you and your family.  It is our goal to make your relocation process efficient in the form of services offered and to reduce the cost impact that maybe incurred during the relocation process. It is imperative that if you accept our offer of employment, you speak with Primacy prior to initializing contact with any other outside party (including but not limited to Real Estate Agents, Temporary Living Providers and/or Household Good Providers). Failure to work within the established relocation guidelines, administered by Primacy, may result in a loss of this relocation benefit. 
 

 

  

4

  

 

As a Divisional President you will be receiving the highest level of relocation support offered under our program which includes a period of temporary housing and storage of your household goods until your new location is confirmed, a generous miscellaneous expense allowance to help with the cost of items not covered under the relocation policy, such as carpet cleaning, car registration/license fees, utility hookups, etc., and the eligibility to participate in our Buyer Value Option (BVO).  This BVO feature assists you with the sale of your existing home when compared to a direct reimbursement program through:

	
·  

	
Having the customary closing costs paid through Primacy, therefore not requiring tax assistance

	
·  

	
Your eligibility to receive an equity advancement (once an offer has been received on the home you are selling) which will allow you to move quicker on the purchase of a new home

	
·  

	
Primacy will handle the closing on the home you are selling which would eliminate the need for you to return home for the closing process

Taxable relocation payments will appear on your individual W-2 and Charming Shoppes, Inc. will provide tax assistance (gross-up) on many of the taxable payments to offset your individual tax burden.  We encourage you to seek advice from a tax expert to determine your individual tax impact regarding relocation expenses.  Relocating individuals are responsible for keeping accurate expense records, completing relocation expense reports and providing clear, readable receipts.

If your employment with Charming Shoppes, Inc. terminates prior to twelve (12) months from your date of hire due to either a voluntary termination or a discharge for cause, you will be required to reimburse the Company for all relocation related costs.  Please initial here to acknowledge your understanding regarding the payback of the relocation costs should this situation occur.  __________

A summary of the relocation process is included with this offer letter so that you may better understand how our process works.  Once you have accepted our offer we will work with Primacy to setup your relocation account and any additional questions can be reviewed with your individual relocation coordinator.

Special Transition Bonus:  In addition to our Executive Relocation Package, we will provide you with a Transition Bonus of $85,000 to be used for additional temporary housing or commutation.

  

5

  

 

Change in Control and Severance Agreements:  Upon commencement of your employment with the Company, you will be provided with the same Change of Contol protection and Executive Severance provided to the other members of the Executive Leadership Team.  You in turn will commit to a non-compete, non solicitation, non-hire and non disclosure undertaking, as more fully set forth in the Change of Control and Severance Agreements as a condition to your employment. The details will be provided to you in this package.

As you may know, your employment with the Company is an at will relationship.  This letter is not a formal contract of employment with the Company or a contract for any particular length of employment, but rather a summary of the initial terms of your employment.  In addition to the offer letter we have included a copy of the CSI Standards of Business Conduct which will be applicable to you during your employment with the Company, and the information about the Company Benefit plans in our Benefits at a Glance summary.

If you are in full agreement with this offer and accept its terms, please sign both letters and the Business Conduct Policy and return one copy in the enclosed envelope.  A copy has been included which you can retain for your records.

Brian, on behalf of Dorrit Bern, and all of us here at Charming Shoppes Inc., I am pleased to extend this offer of employment to you and I look forward to welcoming you to the Company.  Your first day with us will include our Company orientation program and once we have received your signed acceptance, we will forward to you additional information regarding what you will need to bring to the Company to help facilitate your “on boarding” process and confirm your benefits eligibility dates.

  

6

  

 

Please contact me at 215-633-4929 if there is anything we can do to assist you in a smooth transition to the Company.  On behalf of all your new colleagues, I look forward to hearing from you.

Sincerely,

Gale Varma

Executive Vice President

Human Resources

I have read and agree to accept the terms offered to me:

___________________________________________

Brian Woolf

___________________________________________

Date:

Attachments:

SARs Brochure

Flexible Perquisite

Benefits-at-a-Glance

Relocation Program Summary

CSI Standards of Business Conduct

Certification of Commitment to the Standards of Business Conduct

Severance Agreement (Including Change in Control)

	
cc:

	
Dorrit Bern

Chairman, CEO and President

	
  

	
Terry Cheung,

	
  

	
Senior Manager Compensation

	
  

	
Tony Camoratto

	
  

	
VP Business Service Center

  

7

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00171-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00171-of-00352.parquet"}]]