Document:

Exhibit 10.2

 

RESTRICTIVE COVENANT AGREEMENT

 

THIS RESTRICTIVE COVENANT AGREEMENT (this “Agreement”)
is entered into by and between Mothers Work, Inc., a Delaware corporation
(the “Company”) and the undersigned individual (the “Employee”).

 

WHEREAS, in the course of his or her employment (or
continued employment) with the Company, the Employee will be provided with
access to the Company’s trade secrets and confidential information; and

 

WHEREAS, in an effort to protect the Company’s trade
secrets and confidential information, amongst other reasons, the Company and
the Employee desire to set forth in writing certain terms and conditions of
their employment relationship including, but not limited to, restrictions
imposed upon the Employee pertaining to use by the Employee of such
information.

 

NOW, THEREFORE, intending to be legally bound
hereby, the parties hereto agree as follows:

 

1.                                      CONFIDENTIAL INFORMATION: 
Confidential Information means information which the Company regards as
confidential or proprietary and which the Employee learns or develops during or
related to his or her employment, including, but not limited to, information
relating to:

 

a.              the Company’s products, suppliers, pricing,
costs, sourcing, design, fabric and distribution processes;

b.             the Company’s marketing plans and
projections;

c.              lists of names and addresses of the Company’s
employees, agents, factories and suppliers;

d.             the methods of importing and exporting used
by the Company;

e.              manuals and procedures created and/or used by
the Company;

f.                trade secrets or other information that is
used in the Company’s business, and which give the Company an opportunity to
obtain an advantage over competitors who do not know such trade secrets or how
to use the same; and

g.             software in various stages of development
(source code, object code, documentation, flow charts), specifications, models,
data and customer information.

 

The Employee assigns to Company any rights he or she
may have in any Confidential Information. 
The Employee shall not disclose any Confidential Information to any
third-party or use any Confidential Information for any purposes other than as
authorized by the Company.

 

The Employee agrees not to disclose to Company or
use for its benefit any confidential information that he or she may possess
from any prior employers or other sources.

 

2.                                      SURRENDER OF MATERIALS:  The
Employee hereby agrees to deliver to the Company promptly upon request or on
the date of termination of the Employee’s employment, all documents, copies
thereof and other materials in the Employee’s possession pertaining to the
business of the Company and its customers, including, but not limited to,
Confidential Information (and each and every copy, disk, abstract, summary or
reproduction of the same made by or for the Employee or acquired by the

 

 

Employee). 
The Employee will be responsible for the value of all Company or
customer property that is not timely returned. 
The Employee authorizes the Company to deduct the fair market value of
such property from any monies owed to him or her.

 

3.                                      NON-COMPETITION AND NON-SOLICITATION:  The
Employee acknowledges that the Company has developed and maintains at great
expense, a valuable supplier network, supplier contacts, many of which are of
longstanding, product designs, and other information of the type described in
paragraph 1 of this Agreement, and that in the course of his or her employment
(or continued employment) by the Company, the Employee will be given
Confidential Information concerning such suppliers and products, including
information concerning such suppliers’ purchasing personnel, policies,
requirements, and preferences, and such product’s design, manufacture and
marketing.

 

a.              Accordingly, the Employee agrees that during
the period of his or her service with the Company and its affiliates, and for
the twenty-four (24) month period following immediately thereafter (regardless
of the reason for the cessation of such service and regardless of whether such
cessation was initiated by the Company or the Employee), the Employee will not
directly or indirectly:

 

(i) on the Employee’s behalf, or on behalf of
any other person or entity, perform any act with respect to the design,
manufacture, sale, attempted sale or promotion of the sale of any Conflicting
Product.

 

(ii) own, manage, operate, finance, join,
control, or participate in the ownership, management, operation, financing or
control of, or be connected as an officer, director, employee, partner,
principal, agent, representative, or consultant, or use or permit the Employee’s
name to be used in connection with:  (a) any
entity offering for sale or contemplating offering for sale any Conflicting
Product, (b) any Competing Business, or (c) any entity which would
require by necessity use of Confidential Information.

 

The term “Conflicting Product” shall mean any
product, process or service which is the same as, similar to, or in any manner
competitive with any Company product (which includes third-party products that
are distributed by Company), process, or service.  Conflicting Product includes, but is not
limited to maternity and nursing apparel and related accessories.

 

The term “Competing Business” shall mean any
business or enterprise engaged in the design, manufacture or sale of any
maternity or nursing apparel or related accessories, or in any other business
engaged in by the Company at the time of Employee’s termination of employment
from the Company within:  (x) a
state or commonwealth of the United States or the District of Columbia, or (y) any
foreign country, in which the Company has engaged in any such business within
the prior year or has undertaken preparations to engage.

 

b.  During the period of Employee’s service with
the Company and its affiliates, and for the twenty-four (24) month period
following immediately thereafter, the Employee will not induce, attempt to
induce (or in any way assist any other person in inducing or attempting to
induce) any employee, consultant, supplier, licensor, licensee, contractor,
agent, strategic partner, distributor or other person to terminate or modify
any agreement, arrangement, relationship or course of dealing with the Company.

 

2

 

Further, during such period Employee will not
directly or indirectly, on Employee’s own behalf or on behalf of any other
person or entity, employ or solicit for employment any current or former
Company employee or agent.

 

c.              The Employee acknowledges that any breach by
him or her of the provisions of this Section 3 (the “Restrictive Covenants”),
whether or not willful, will cause continuing and irreparable injury to the
Company for which monetary damages alone would not be an adequate remedy.  The Employee shall not, in any action or
proceeding to enforce the Restrictive Covenants, assert the claim or defense
that such an adequate remedy at law exists.  If there is a breach or threatened breach of
any of the Restrictive Covenants, or any other obligation contained in this
Agreement, the Company shall be entitled to an injunction restraining the
Employee from any such breach without the necessity of proving actual damages,
and the Employee waives the requirement of posting a bond.  Nothing herein, however, shall be construed
as prohibiting the Company from pursuing other remedies for such breach or
threatened breach.

 

d.             The Employee agrees to disclose the existence
and terms of the Restrictive Covenants to any person for whom the Employee
performs services for during the 24 month period immediately following any
cessation of his or her service with the Company and its affiliates.

 

e.              The Employee acknowledges that the
Restrictive Covenants are reasonable and necessary to protect the legitimate
interests of the Company and its affiliates, that the duration and scope of the
Restrictive Covenants are reasonable given the Employee’s position within the
Company, and that the Company would not have promoted the Employee, entered
into that certain Employment Agreement between the Company and the Employee
dated on or about the date hereof (the “Employment Agreement”) or otherwise
agreed to provide the increased benefits and compensation described in the
Employment Agreement in the absence of the Employee’s execution of this
Agreement.

 

4.                                      OTHER CONDITIONS OF EMPLOYMENT:  The
Employee shall be subject to other terms and conditions of employment as set
forth in the prevailing Company: a) Team Member Handbook, b) insider trading
policies, and c) any other Company policies, all of which shall be subject to
interpretation and change from time to time at the sole discretion of the
Company.

 

5.                                      GOVERNING LAW AND RELATED MATTERS:  This
Agreement shall be governed by and construed and enforced in accordance with
the laws of the Commonwealth of Pennsylvania. 
The Employee agrees that in the event of any violation of this
Agreement, or any other matter arising out of or relating to this Agreement, an
action may be removed to or commenced by the Company in any federal or state
court of competent jurisdiction in the Commonwealth of Pennsylvania.  The Employee hereby waives, to the fullest
extent permitted by law, any objection that he or she may now or hereafter have
to such jurisdiction or to the laying of the venue of any such suit, action or
proceeding brought in such a court and any claim that such suit, action or proceeding
has been brought in an inconvenient forum. 
The Employee agrees that effective service of process may be made upon
Employee by mail to any address Employee has provided to Company.  In the event the Company files suit against
the Employee for any reason, or in the event the Company is otherwise involved
in litigation concerning this Agreement or

 

3

 

the employment relationship between the parties, and
a court of competent jurisdiction finds in favor of the Company on any such
matter, the Employee shall reimburse the Company its reasonable costs and
attorney’s fees incurred in connection with such suit.

 

The various parts of this Agreement are intended to
be severable.  Should any part be
rendered or declared invalid be reason of any legislation or by a decree of a
court of competent jurisdiction, such part shall be deemed modified to the
extent required by such legislation or decree and the invalidation or
modification of such part shall not invalidate or modify the remaining parts
hereof.  Without limiting the generality
of the foregoing, if the scope of any covenant contained in this Agreement is
too broad to permit enforcement to its full extent, such covenant shall be
enforced to the maximum extent permitted by law.  The Employee agrees that such scope may be
judicially modified accordingly.

 

6.                                      ASSIGNMENT:  The Company may assign its
rights under this Agreement to any affiliate or to any successor to its assets
and business by means of liquidation, dissolution, sale of assets or
otherwise.  The obligations of Employee
hereunder are personal to him or her and may not be assigned.

 

7.                                      ENTIRE AGREEMENT:  This
Agreement, together with the Employment Agreement, represents the full and
complete understanding between the Company and the Employee with respect to the
subject matter hereof and supersedes all prior representations and
understandings, whether oral or written and, except as provided for herein,
shall not be modified except upon written amendment executed by Employee and an
officer of Company holding the position of Vice President or above.

 

8.                                      ACKNOWLEDGMENTS:  The
Employee acknowledges that he or she was provided with an ample opportunity to
read, ask questions, seek clarification, and seek counsel with respect to this
Agreement before executing it.  The
Employee acknowledges that he or she has read this Agreement in its entirety
and understands all of its terms and conditions.  Finally, Employee acknowledges receipt of a
signed copy of this Agreement.

 

IN WITNESS WHEREOF, the parties have each executed
this instrument on the day and year written below, respectively.

 

	
  Mothers Work, Inc.

  	
   

  	
  Employee

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Edward M. Krell

  	
   

  	
  By:

  	
   /s/ Judd P. Tirnauer

  
	
  Title:

  	
   Chief Operating Officer

  	
   

  	
  Printed Name:

  	
  Judd P. Tirnauer

  
	
  Date:

  	
   July 23, 2008

  	
   

  	
  Date:

  	
   July 23, 2008

  
	
  Executed At:

  	
    Philadelphia, PA

  	
   

  	
  Executed At:

  	
    Philadelphia, PA

  
										

 

4Exhibit 10.3

 

RESTRICTED STOCK AWARD AGREEMENT

UNDER THE

MOTHERS WORK, INC. 2005 EQUITY INCENTIVE PLAN

 

THIS RESTRICTED STOCK AWARD AGREEMENT
(this “Agreement”) is made by and between Mothers Work, Inc., a Delaware
corporation, (the “Company”) and JUDD P. TIRNAUER (the “Grantee”).

 

WHEREAS, the Company maintains
the Mothers Work, Inc. 2005 Equity Incentive Plan (the “Plan”) for
the benefit of its employees, directors, consultants, and other individuals who
provide services to the Company; and

 

WHEREAS, the Plan permits the
grant of Restricted Stock; and

 

WHEREAS, to compensate the
Grantee for his or her service to the Company and to further align the Grantee’s
financial interests with those of the Company’s other stockholders, the Board
approved this Award of Restricted Stock on July 23, 2008 (the “Effective
Date”), subject to the restrictions and on the terms and conditions
contained in the Plan and this Agreement.

 

NOW, THEREFORE, in
consideration of these premises and the agreements set forth herein, the parties,
intending to be legally bound hereby, agree as follows:

 

1.                                      Award of Restricted Shares.  The Company hereby awards the Grantee 5,000 Shares
of Restricted Stock, subject to the restrictions and on the terms and
conditions set forth in this Agreement (the “Restricted Shares”).  The terms of the Plan are hereby incorporated
into this Agreement by this reference, as though fully set forth herein.  Except as otherwise provided herein,
capitalized terms herein will have the same meaning as defined in the Plan.

 

2.                                      Vesting of Restricted Shares.  The Restricted Shares are subject to
forfeiture to the Company until they become nonforfeitable in accordance with
this Section 2.  While subject to
forfeiture, the Restricted Shares may not be sold, pledged, assigned, otherwise
encumbered or transferred in any manner, whether voluntarily or involuntarily
by the operation of law.

 

(a)           Vesting
Based on Continued Service.  20% of
the Restricted Shares will become nonforfeitable on each of the first, second,
third, fourth and fifth anniversaries of the Effective Date, provided in each
case that the Grantee remains in continuous service with the Company through
the applicable anniversary date.  For
purposes of this Agreement, service with an Affiliate of the Company will be
deemed to constitute service with the Company, for so long as such entity
remains an Affiliate of the Company.

 

(b)          Accelerated
Vesting.  Immediately prior to a Change in Control, any
Restricted Shares that then remain subject to forfeiture will become nonforfeitable,
provided the Grantee remains in continuous service with the Company through the
completion of that Change in Control.

 

 

  (c)         Unvested
Shares Forfeited Upon Cessation of Service. 
Upon any cessation of the Grantee’s service with the Company (whether
initiated by the Company, Grantee or otherwise): (i) any Restricted Shares
that are not then nonforfeitable will immediately and automatically, without
any action on the part of the Company, be forfeited, and (ii) the Grantee
will have no further rights with respect to those shares.

 

3.                   Issuance
of Shares.

 

  (a)         The
Company will cause the Restricted Shares to be issued in the Grantee’s name
either by book-entry registration or issuance of a stock certificate or
certificates.

 

  (b)         While
the Restricted Shares remain forfeitable, the Company will cause an appropriate
stop-transfer order to be issued and to remain in effect with respect to the
Restricted Shares.  As soon as
practicable following the time that any Restricted Share becomes nonforfeitable
(and provided that appropriate arrangements have been made with the Company for
the withholding or payment of any taxes that may be due with respect to such
Share), the Company will cause that stop-transfer order to be removed.  The Company may also condition delivery of
certificates for Restricted Shares upon receipt from the Grantee of any
undertakings that it may determine are appropriate to facilitate compliance
with federal and state securities laws.

 

  (c)         If
any certificate is issued in respect of Restricted Shares, that certificate
will be legended as described in Section 8(b) of the Plan and held in
escrow by the Company’s secretary or his or her designee.  In addition, the Grantee may be required to
execute and deliver to the Company a stock power with respect to those
Restricted Shares.  At such time as those
Restricted Shares become nonforfeitable, the Company will cause a new
certificate to be issued without that portion of the legend referencing the
previously applicable forfeiture conditions and will cause that new certificate
to be delivered to the Grantee (again, provided
that appropriate arrangements have been made with the Company for the
withholding or payment of any taxes that may be due with respect to such
Shares).

 

4.             Substitute Property.  If, while any of the
Restricted Shares remain subject to forfeiture, there occurs a merger,
reclassification, recapitalization, stock split, stock dividend or other
similar event or transaction resulting in new, substituted or additional
securities being issued or delivered to the Grantee by reason of the Grantee’s
ownership of the Restricted Shares, such securities will constitute “Restricted
Shares” for all purposes of this Agreement and any certificate issued to
evidence such securities will immediately be deposited with the secretary of
the Company (or his or her designee) and subject to the escrow described in Section 3(c),
above.

 

5.             Rights of
Grantee During Restricted Period.  The Grantee will have the right to vote the
Restricted Shares and to receive dividends and distributions with respect to
the Restricted Shares; provided, however,
that any cash dividends or distributions paid in respect of the Restricted
Shares while those Shares remain subject to forfeiture will be delivered to the
Grantee only if and when the Restricted Shares giving rise to such dividends or
distributions become nonforfeitable.

 

2

 

6.            Securities Laws.  The Board may from time to time impose any
conditions on the Restricted Shares as it deems necessary or advisable to
ensure that the Restricted Shares are issued and resold in compliance with the
Securities Act of 1933, as amended.

 

7.            Tax Consequences.  The Grantee acknowledges that the Company has
not advised the Grantee regarding the Grantee’s income tax liability in
connection with the grant of or the lapse of forfeiture restrictions on the
Restricted Shares.  The Grantee has had
the opportunity to review with his or her own tax advisors the federal, state
and local tax consequences of the transactions contemplated by this
Agreement.  The Grantee is relying solely
on such advisors and not on any statements or representations of the Company or
any of its agents.  The Grantee
understands that the Grantee (and not the Company) shall be responsible for the
Grantee’s own tax liability that may arise as a result of the transactions
contemplated by this Agreement.

 

8.             The Plan.  This Award of Restricted Shares is subject
to, and the Grantee agrees to be bound by, all of the terms and conditions of
the Plan, as such Plan may be amended from time to time in accordance with the
terms thereof.  Pursuant to the Plan, the
Board is authorized to adopt rules and regulations not inconsistent with
the Plan as it shall deem appropriate and proper.  A copy of the Plan in its present form is
available for inspection during business hours by the Grantee at the Company’s
principal office.  All questions of the
interpretation and application of the Plan and the Grantee shall be determined
by the Board and any such determination shall be final, binding and conclusive.

 

9.             Entire Agreement.  This Agreement, together with the Plan,
represents the entire agreement between the parties hereto relating to the
subject matter hereof, and merges and supersedes all prior and contemporaneous
discussions, agreements and understandings of every nature.

 

10.          Tax Withholding.  The Company hereby agrees that, at the
election of the Grantee and except as would otherwise violate the terms of any
financing agreement to which the Company is then a party, the minimum required
tax withholding obligations arising in connection with this Award may be
settled in nonforfeitable Shares subject to this Award based on the Fair Market
Value of those Shares.

 

11.          Governing
Law.  This Agreement will be construed in accordance
with the laws of the Commonwealth of Pennsylvania, without regard to the
application of the principles of conflicts of laws.

 

12.          Amendment.  Subject to the provisions of the Plan, this
Agreement may only be amended by a writing signed by each of the parties
hereto.

 

13.          Execution.  This Agreement may be executed, including
execution by facsimile signature, in one or more counterparts, each of which
will be deemed an original, and all of which together shall be deemed to be one
and the same instrument.

 

3

 

IN WITNESS WHEREOF, the Company’s duly authorized representative and
the Grantee have each executed this Restricted Stock Award Agreement on the
respective date below indicated.

 

 

	
   

  	
  MOTHERS WORK, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Edward M. Krell

  
	
   

  	
   

  
	
   

  	
  Name:

  	
  Edward M. Krell

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
  Chief Operating Officer

  
	
   

  	
   

  	
   

  
	
   

  	
  Date:

  	
  July 23, 2008

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  GRANTEE

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Signature:

  	
  /s/ Judd P. Tirnauer

  
	
   

  	
   

  
	
   

  	
  Date:

  	
  July 23, 2008

  
						

 

4

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