Document:

Exhibit 10.12

 

THIS NOTE HAS
NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”).  THIS NOTE HAS BEEN ACQUIRED FOR
INVESTMENT ONLY AND MAY NOT BE SOLD, TRANSFERRED OR ASSIGNED IN THE
ABSENCE OF REGISTRATION OF THE RESALE THEREOF UNDER THE SECURITIES ACT OR AN
OPINION OF COUNSEL REASONABLY SATISFACTORY IN FORM, SCOPE AND SUBSTANCE TO THE
COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED.

 

PROMISSORY NOTE
 

	$250,000.00
	 
	Dated as of January 25, 2008

	 
	 
	330 Madison Avenue, 25th Floor

	 
	 
	New York, NY 10017

 
K Road Acquisition Corporation (the “Maker”) promises to pay to the order of K Road Acquisition Holdings LLC or its registered assigns or successors in interest (the “Payee”), or order, the principal sum of TWO HUNDRED FIFTY THOUSAND DOLLARS ($250,000.00) in lawful money of the United States of America, on the terms and conditions described below.  All payments on this Note shall be made by check or wire transfer of immediately available funds or as otherwise determined by the Maker to such account as the Payee may from time to time designate by written notice in accordance with the provisions of this Note.
 
1.             Principal. The principal balance of this Note shall be repayable on the earlier of (i) January 24, 2009 or (ii) the date on which Maker consummates an initial public offering of its securities (in either case, the “Maturity Date).
 
2.             Interest. No interest shall accrue on the unpaid principal balance of this Note; provided, however, that Maker promises to pay interest on the outstanding principal amount hereof from and after the Maturity Date, or during the continuance of an Event of Default (as defined below), at the rate of five percent (5.0%) per annum, (or, if such rate exceeds the maximum rate permitted by law, then at such maximum rate permitted by law). Interest shall be calculated on the basis of a 365-day year for the actual number of days elapsed.
 
3.             Application of Payments. All payments shall be applied first to payment in full of any costs incurred in the collection of any sum due under this Note, including (without limitation) reasonable attorney’s fees, then to the payment in full of any late charges and finally to the reduction of the unpaid principal balance of this Note.
 
4.             Events of Default. The following shall constitute Events of Default:
 
(a)           Failure to Make Required Payments. Failure by Maker to pay the principal of this Note within five (5) business days following the date when due.

 

 

(b)           Voluntary Bankruptcy, Etc. The commencement by Maker of a voluntary case under the Federal Bankruptcy Code, as now constituted or hereafter amended, or any other applicable federal or state bankruptcy, insolvency, reorganization, rehabilitation or other similar law, or the consent by it to the appointment of or taking possession by a receiver, liquidator, assignee, trustee, custodian, sequestrator (or other similar official) of Maker or for any substantial part of its property, or the making by it of any assignment for the benefit of creditors, or the failure of Maker generally to pay its debts as such debts become due, or the taking of corporate action by Maker in furtherance of any of the foregoing.
 
(c)           Involuntary Bankruptcy, Etc. The entry of a decree or order for relief by a court having jurisdiction in the premises in respect of Maker in an involuntary case under the Federal Bankruptcy Code, as now or hereafter constituted, or any other applicable federal or state bankruptcy, insolvency or other similar law, or appointing a receiver, liquidator, assignee, custodian, trustee, sequestrator (or similar official) of Maker or for any substantial part of its property, or ordering the winding-up or liquidation of its affairs, and the continuance of any such decree or order unstayed and in effect for a period of 60 consecutive days.
 
5.                                      Remedies.
 
(a)           Upon the occurrence of an Event of Default specified in Section 4(a), Payee may, by written notice to Maker, declare this Note to be due and payable, whereupon the principal amount of this Note, and all other amounts payable thereunder, shall become immediately due and payable without presentment, demand, protest or other notice of any kind, all of which are hereby expressly waived, anything contained herein or in the documents evidencing the same to the contrary notwithstanding.
 
(b)           Upon the occurrence of an Event of Default specified in Sections 4(b) and 4(c), the unpaid principal balance of, and all other sums payable with regard to, this Note shall automatically and immediately become due and payable, in all cases without any action on the part of Payee.
 

(c)           The
Payee may exercise any and all rights and remedies it may have under this Note
or under applicable law.  All rights and
remedies shall be cumulative and not exclusive. The failure of the Payee to
exercise all or any of its rights, remedies, powers or privileges hereunder or
any other agreement or applicable law in any instance shall not constitute a
waiver thereof in that or any other instance.

 

6.             Waivers. Maker and all endorsers and guarantors of, and sureties for, this Note waive presentment for payment, demand, notice of dishonor, protest, and notice of protest with regard to the Note, all errors, defects and imperfections in any proceedings instituted by Payee under the terms of this Note, and all benefits that might accrue to Maker by virtue of any present or future laws exempting any property, real or personal, or any part of the proceeds arising from any sale of any such property, from attachment, levy or
 

 
sale under execution, or providing for any stay of execution, exemption from civil process, or extension of time for payment; and Maker agrees that any real estate that may be levied upon pursuant to a judgment obtained by virtue hereof, on any writ of execution issued hereon, may be sold upon any such writ in whole or in part in any order desired by Payee.
 
7.             Unconditional Liability. Maker hereby waives all notices in connection with the delivery, acceptance, performance, default, or enforcement of the payment of this Note, and agrees that its liability shall be unconditional, without regard to the liability of any other party, and shall not be affected in any manner by any indulgence, extension of time, renewal, waiver or modification granted or consented to by Payee, and consents to any and all extensions of time, renewals, waivers, or modifications that may be granted by Payee with respect to the payment or other provisions of this Note, and agree that additional makers, endorsers, guarantors, or sureties may become parties hereto without notice to them or affecting their liability hereunder.
 
8.             Notices. Any notice called for hereunder shall be deemed properly given if (i) sent by certified mail, return receipt requested, (ii) personally delivered, (iii) dispatched by any form of private or governmental express mail or delivery service providing receipted delivery or (iv) sent by telefacsimile or (v) to the following addresses or to such other address as either party may designate by notice in accordance with this Section:
 
If to Maker:

K Road Acquisition Corporation

330 Madison Avenue, 25th Floor

New York, New York 10017

 

Attn:  William V. Kriegel,
Chairman, President and Chief Executive Officer

 

If to Payee:

K Road Acquisition Holdings LLC

330 Madison Avenue, 25th Floor

New York, New York 10017

 

Notice shall be deemed given on the earlier of (i) actual receipt by the receiving party, (ii) the date shown on a telefacsimile transmission confirmation, (iii) the date reflected on a signed delivery receipt, or (iv) two (2) Business Days following tender of delivery or dispatch by express mail or delivery service.
 
9.     Construction. THIS NOTE SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE DOMESTIC INTERNAL LAW, BUT NOT THE LAW OF CONFLICT OF LAWS, OF THE STATE OF NEW YORK.
 
10.   Severability; Entire Agreement; Amendments. Any provision contained in this Note which is prohibited or unenforceable in any jurisdiction shall, as to such
 

 
jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.  This Note constitutes the entire agreement and understanding of the parties, and supersedes and replaces in its entirety any prior discussions, agreements, etc., all of which are merged herein and therein. None of the terms of this Note may be amended or otherwise modified except by an instrument executed by each of the Maker and the Payee.
 
11.           Successors and Assigns. This Note and all obligations of the Maker hereunder shall be binding upon the successors and assigns of the Maker, and shall, together with the rights and remedies of the Payee hereunder, inure to the benefit of the Payee, any future holder of this Note and their respective successors and assigns, provided, however, the Maker may not transfer or assign its rights or obligations hereunder without the express written consent of the Payee, and any purported transfer or assignment by the Maker without the Payee’s written consent shall be null and void. The Payee may assign, transfer, participate or endorse its rights under this Note without the consent or approval of the Maker, and all such rights shall inure to the Payee’s successors and assigns. No sales of participations, other sales, assignments, transfers, endorsements or other dispositions of any rights hereunder or any portion thereof or interest therein shall in any manner affect the obligations of the Maker under this Note. Upon request, the Maker shall, at its own expense, execute and deliver to the assignee of this Note, a replacement Note of equal and like tenor in an amount assigned to and assumed by such assignee.
 

 
IN WITNESS WHEREOF, Maker, intending to be legally bound hereby, has caused this Note to be duly executed by its Chairman, President and Chief Executive Officer the day and year first above written.

 

 

	 
	K ROAD ACQUISITION CORPORATION

	 
	 

	 
	 

	 
	By:
	    /s/ William V. Kriegel

	 
	William V. Kriegel

	 
	Chairman, President and Chief Executive OfficerExhibit 10.5

 

 

 

 

	
  450 WEST 33RD
  STREET

  
	
  NEW YORK, NY
  10001

  
	
  212 884 2000 P

  
	
  212 884 2396 F

  

 

	
  NEW
  YORK & COMPANY

  
	
  450 West 33rd
  Street

  
	
  New York, NY
  10001

  

 

 

 

Sheamus Toal

 

Re:  Letter Agreement of Employment

 

Dear Sheamus:

 

This letter agreement
(this “Agreement”) sets forth the terms and conditions of your
employment, and your employment relationship, with Lerner New York, Inc.
(the “Company”).  Your execution
of this Agreement will represent your acceptance of all of the terms set forth
below and will supercede any other Letter Agreement of Employment entered into
prior to this Agreement.

 

1.             Nature of
Agreement and Relationship. 
This Agreement does not represent an employment contract for any
specified term.  Your employment
relationship thus will remain “at-will,” meaning that, subject to the terms
hereof, either party to this Agreement may terminate the employment
relationship at any time for any lawful reason.

 

2.             Job Title
and Duties.  Your job
title will be Vice President, Corporate Controller/Treasurer.  You will be expected to devote all of your
full time efforts to the performance of the duties and responsibilities
normally associated with this position, including those from time-to-time that
may be assigned to you by your Supervisor, the President, the Chief Executive
Officer, the Chief Operating Officer or the Board of Directors of the Company
(or the designee of any of the foregoing).

 

3.             Salary.  For the 12-month period ending on the last
Saturday of each January (the last day of the fiscal year), you will
receive a base salary at the rate of $240,000  per
annum (“Base Salary”), subject to the remaining provisions of this
Section.   For the remainder of the
current fiscal year starting on the date of this Agreement, your Base Salary
will be pro rated based on the number of days remaining in such fiscal year
divided by 365.  At the Company’s sole
discretion, your Base Salary may be increased or decreased based on your
performance and the performance of the business.  You will be paid in accordance with the
Company’s normal payroll policies and practices, with all applicable deductions
being withheld from your paychecks.

 

4.             Bonus.  You will be eligible to participate in
the Company’s then current bonus plan, in accordance with its terms and conditions,
and to receive performance-based bonuses pursuant to any formula that may be
established.  For the Company’s current
fiscal year, your bonus target for the spring bonus (relating to the Company’s
results for the first and second fiscal quarters of each fiscal year) will be
14% of your Base Salary and for the fall bonus (relating to the Company’s
results for the third and fourth fiscal quarters of each fiscal year) will be
21%  of your Base Salary.  Any bonus will be payable in the month
following the last quarter to which that bonus relates.  All bonuses are determined at the Company’s
sole discretion, and the Company has the sole discretion to modify or terminate
any bonus plan and that plan will govern your right, if any, to a bonus payment
upon termination of your employment.

 

5.             Stock
Options and Other Long-Term Incentives.  You will be eligible to receive awards under
stock option, restricted stock or other equity-based long-term incentive plans
established by the Company (or an Affiliate) that cover executive officers of
the Company.  The term “Affiliate”
means any corporation, partnership, limited liability company or other entity
(other than the Company) that controls or is controlled by the Company, whether
directly or indirectly, such as a parent company or subsidiary.  All equity awards described in this paragraph
are determined at the Company’s sole discretion, and the Company has the sole
discretion to modify or terminate any stock option, restricted stock or other
equity-based long-term incentive plan and that plan will govern your rights, if
any, relating to any equity award(s) you have received, or may be entitled
to receive, upon termination of your employment.

 

 

 

 

 

6.             Employee
Benefits.  You will be
entitled to participate in all employee benefits plans, practices and programs
maintained by the Company and made available to senior executives generally and
as may be in effect from time to time (the “Benefits Plans”).  Your participation in the Benefits Plans will
be on the same basis and terms as are applicable to senior executives of the
Company generally.  Benefits Plans
include, but are not limited to, savings and retirement plans, deferred
compensation, health and prescription drug benefits, disability benefits, other
insurance programs, vacation and other leave, merchandise discounts and
business expense procedures.  Plan
documents setting forth terms of certain of the Benefits Plans are available
upon request, which plan documents control all questions of interpretation
concerning applicable Benefits Plans, including your rights, if any, upon
termination of your employment.  The
Benefits Plans are subject to modification or termination by the Company at any
time, at its sole discretion, in accordance with their terms.

 

7.             Severance
Pay.  Upon your
termination of employment by the Company and all Affiliates without Cause (as
defined below), but subject to your performance of all post-employment
obligations set forth in this Agreement and also subject to your signing a
release of claims in a form acceptable to the Company, you will be entitled to
receive severance pay for Six  (6) months
“Severance Period” at your final Base Salary (“Severance Pay”),
beginning the first pay period following your separation date and ending upon
the earlier of:  (i)  your receipt
of 26  such payments or (ii) your first
day of employment with another employer, whichever is earlier.  If you obtain employment at an annual salary
that is lower than your final Base Salary, you will continue to receive the
differential between the two rates of pay for the balance of the 26 weeks. This
Severance Pay, which will be subject to applicable deductions required by law,
will be paid on the Company’s regular payroll dates for the balance of the six (6) month
“Severance Period” following your termination date, as outlined above.  For purposes of this Agreement, “Cause”
means: (i) your wrongful misappropriation of the Company’s or an Affiliate’s
assets of a material value; (ii) any physical or mental impairment that
renders you incapable of performing the essential functions of your position
with reasonable accommodations; (iii) your conviction of, or pleading “guilty”
or “no contest” to, a felony; (iv) your intentionally causing the Company
or an Affiliate to violate a material local state or federal law in any
material respect; (v) your willful refusal to comply with a significant,
lawful and proper policy, directive or decision of your supervisor or the Board
in furtherance of a legitimate business purpose or your willful refusal to
perform the duties reasonably assigned to you consistent with your functions,
duties and responsibilities, in each case, in any material respect, and only if
not remedied within thirty (30) days after receipt of written notice from the
Company; or (vi) your breach of this Agreement, in any material respect,
not remedied within thirty (30) days after receipt of written notice from the
Company.

 

8.             Confidential
Information, Intellectual Property.

 

8.1                                 Confidentiality. 
You agree to not disclose, distribute, publish, communicate or in any
way cause to be disclosed, distributed, published, or communicated in any way
or at any time, Confidential Information (as defined herein), or any part of
Confidential Information, to any person, firm, corporation, association, or any
other operation or entity except on behalf of the Company in performance of
your duties and responsibilities for the Company, and then only in a fashion
consistent with protecting the Confidential Information from unauthorized use
or disclosure, except as otherwise approved by the Company.  You further agree not to use or permit the
reproduction of any Confidential Information except on behalf of the Company in
your capacity as an employee of the Company. 
You agree to take all reasonable care to avoid the unauthorized
disclosure or use of any Confidential Information.  You assume responsibility for and agree to
indemnify and hold harmless the Company from and against any disclosure or use
of the Confidential Information in violation of this Agreement.

 

8.2                                 Confidential Information. 
For the purpose of this Agreement, “Confidential Information” shall mean
any written or unwritten information which relates to and/or is used in the
Company’s business (including, without limitation, information related to the
names, addresses, buying habits and other special information regarding past,
present and potential customers, employees and suppliers of the Company;
customer and supplier contracts and transactions or price lists of the Company
and suppliers; all agreements, files, books, logs, charts, records, studies,
reports, processes, schedules and statistical information relating to the
Company; all products, services, programs and processes sold, and all computer
software licensed or developed by the Company; data, plans and specifications
related to present and/or future development projects of the Company; financial
and/or marketing data respecting the conduct of the present or future phases of
business of the Company; computer programs, computer- and/or web-based training
programs, systems and/or software; ideas, inventions, trademarks, business
information, know-how, processes, techniques, improvements, designs, redesigns,
creations, discoveries and developments of the Company; and finances and financial
information of the Company) which the Company deems confidential and
proprietary, which is generally not known to others outside the Company, or
which gives or tends to give the Company a competitive advantage over persons
who do not possess such information or the secrecy of which is otherwise of
value to the Company in the conduct of its business regardless of when and by
whom such information was developed or acquired, and regardless of whether any
of these are described in writing, copyrightable or considered copyrightable,
patentable or considered patentable.  “Confidential
Information” shall not include general industry information or information
which is publicly available or otherwise known to those persons outside the
Company working in the area of the business of the Company or is otherwise in
the public domain without breach of this Agreement or information which you
have lawfully acquired without an obligation to maintain the information in
confidence from a source other than the Company.  “Confidential Information” specifically
includes information received by the Company from others, including the Company’s
clients, that the Company has an obligation to treat as confidential and also
includes any confidential information acquired or obtained by you while in the
employment 

 

 

 

 

of any of the Company’s
subsidiary or affiliated companies or any company which has been acquired by
the Company.

 

8.3                                 Invention Ownership. 
With respect to information, inventions and discoveries developed, made
or conceived by you, either alone or with others, at any time during your
employment by the Company and whether or not within normal working hours,
arising out of such employment or pertinent to any field of business or
research in which, during such employment, the Company is engaged or (if such
is known to or ascertainable by you) is considering engaging, you agree:

 

(a)           that
all such information, inventions and discoveries, whether or not patented or
patentable, shall be and remain the sole property of the Company;

 

(b)           to
disclose promptly to an authorized representative of the Company all such
information, inventions and discoveries and all information in your possession
as to possible applications and uses thereof;

 

(c)           not
to file any patent applications relating to any such invention or discovery
except with the prior consent of an authorized representative of the Company;
and

 

(d)           at
the request of the Company, and without expense or additional compensation to
you, to execute such documents and perform such other acts as the Company deems
necessary, to obtain patents on such inventions in a jurisdiction or
jurisdictions designated by the Company, and to assign to the Company or its
designee such inventions and all patent applications and patents relating thereto.

 

Both the Company and you
intend that all original works of authorship within the purview of the
copyright laws of the United States authored or created by you in the course of
your employment with the Company will be works for hire within the meaning of
such copyright laws.

 

8.4                                 Confidentiality of Inventions; Return of
Materials and Confidential Information.  With respect
to the information, inventions and discoveries referred to in Section 8.3,
and also with respect to all other information, whatever its nature and form
and whether obtained orally, by observation, from graphic materials, or
otherwise (except such as is generally available through publication) obtained
by you during or as a result of your employment by the Company and relating to
any product, service, process, or apparatus or to any use of any of them, or to
materials, tolerances, specifications, costs (including manufacturing costs),
prices, or to any plans of the Company, you agree:

 

(a)           to
hold all such information, inventions and discoveries in strict confidence and
not to publish or otherwise disclose any portion thereof except with the prior
consent of an authorized representative of the Company;

 

(b)           to
take all reasonable precautions to ensure that all such information, inventions,
and discoveries are properly protected from access by unauthorized persons;

 

(c)           to
make no use of any such information, invention, or discovery except as required
or permitted in the performance of your duties and responsibilities for the
Company; and

 

(d)           upon
termination of your employment by the Company, or at any time upon request of
the Company, to deliver to the Company all graphic materials and all
substances, models, prototypes and the like containing or relating to
Confidential Information or any such information, invention, or discovery, all
of which graphic materials and other things shall be and remain the sole
property of the Company.  The term “graphic
materials” includes letters, memoranda, reports, notes, notebooks, books of
account, drawings, prints, specifications, formulae, data printouts,
microfilms, magnetic tapes and disks and other documents and recordings,
together with all copies thereof.

 

9.             Non-Solicitation.  Regardless of whether you are eligible to
receive Severance Pay,  you agree
that, if your employment with the Company ends for any reason, you will not,
for a period eighteen (18) months following such termination of employment, (i) directly
or indirectly, either for yourself or for any other person, business, company
or entity, hire from the Company or any Affiliate, or attempt to hire, divert
or take away from the Company or any Affiliate, any of the then current
officers or employees of the Company or any Affiliate, (ii) interfere with
or harm, or attempt to interfere with or harm, the relationship of the Company
or any Affiliate with any person who at any time was an employee, customer or
supplier of the Company or any Affiliate or otherwise had a business
relationship with the Company or any Affiliate, or (iii) unless compelled
by law to do so, directly or indirectly, knowingly make any statement or other
communication that impugns or attacks the reputation or character of the
Company or any Affiliate, or damages the goodwill of the Company or any
Affiliate, or knowingly take any action, directly or indirectly, that would
interfere with any contractual or customer or supplier relationships of the
Company or any Affiliate.

 

10.           Non-Competition.
 If you resign your employment, or if
your employment is terminated with Cause, for a period of six (6) months  following such employment termination, you may not and will
not, within the United States of America, directly or indirectly, without the
prior written consent of the Company’s chief executive officer or its Board of
Directors (which may be given or 

 

 

 

 

withheld in its sole
discretion), own, manage, operate, join, control, be employed by, consult with
or participate in the ownership, management, operation or control of, or be
connected with (as a stockholder, partner or otherwise) any business,
partnership, firm, company, corporation or other entity engaged in the retail
business of women’s fashion apparel, 
accessories and related products or any other product sold or intended
to be sold by the Company or an Affiliate during your employment with the
Company.  Notwithstanding the foregoing,
your beneficial ownership after your termination of employment with the
Company, either individually or as a member of a group, of not more than two percent
(2%) of the voting stock of any publicly held corporation shall not be a
violation of this provision.

 

11.           Remedies.  You acknowledge that money will not
adequately compensate the Company for the substantial damages that will arise
upon the breach of any provision of Sections 8, 9 and 10 of this Agreement and
that the Company would have no adequate remedy at law.  For this reason, any claim the Company may
make that you have breached or are threatening to breach Sections 8, 9, or 10
is not subject to mandatory arbitration under Section 14.  Instead, if you breach or threaten to breach
any provision of Sections 8, 9 or 10, the Company will be entitled, in addition
to other rights and remedies, to specific performance, injunctive relief and
other equitable relief to prevent or restrain any breach or threatened breach
of Sections 8, 9 or 10.  The Company may
obtain such relief from (i) any court of competent jurisdiction, (ii) an
arbitrator acting pursuant to Section 14 hereof,  or (iii) a combination of the two (e.g.,
by simultaneously seeking arbitration under Section 14 and a temporary
injunction from a court pending the outcome of the arbitration).  It shall be the Company’s sole and exclusive
right to elect which approach to use to vindicate its rights.  You also agree that in the event of a breach
(or any threat of breach) the Company shall be entitled to obtain an immediate
injunction and restraining order to prevent such breach and/or threatened
breach and/or continued breach, without having to prove damages, and to obtain
all costs and expenses, including reasonable attorneys’ fees and costs.  In addition, the existence of any claim or
cause of action by you against the Company, whether predicated on this
Agreement or otherwise, shall not constitute a defense to the enforcement by
the Company of the restrictive covenants of this Agreement. To the fullest
extent permitted by the laws of the State of Delaware and the Company’s
certificate of incorporation and by-laws, both as in effect at the time of the
subject act or omission, the Company shall indemnify the Executive against all
costs, charges and expenses incurred or sustained by him in connection with any
action, suit or proceeding to which he may be made a party by reason of his
being or having been a director, officer or employee of the Company or any of
its Subsidiaries or his serving or having served any other enterprise as a
director, officer or employee at the request of the Company (other than any
dispute, claim or controversy arising under or relating to this Agreement or to
the extent a result of a breach by Executive of his representations in Section 8). 
The Company covenants to maintain during the Employment Period for the benefit
of the Executive (in his capacity as an officer of the Company) Directors and
Officers Insurance providing the same benefits extended to other Company
executives.

 

12.           Acknowledgment of
Reasonableness.  You and
the Company specifically agree that the provisions of the restrictive covenants
contained in this Agreement, including the post-employment covenants regarding
non-solicitation and non-competition, are reasonable and that the Company would
not have entered into this Agreement but for the inclusion of such
covenants.  You understand that the
Company’s business is nationwide, and, therefore, a nationwide restrictive
covenant is reasonable.  If a court or
arbitrator determines that any provision of any such restrictive covenant is
unreasonable, whether in period of time, geographical area, or otherwise, you
and the Company agree that the covenant shall be interpreted and enforced to
the maximum extent which a court or arbitrator deems reasonable.  In addition, you and the Company authorize
any such court or arbitrator to reform these restrictions to the minimum extent
necessary.

 

13.           Company Property.
 Upon your termination of employment
for any reason, you will promptly return to the Company all Company-related
documents and Company property within your possession or control.

 

14.           Arbitration of Disputes.  Except as set forth in Section 11, any
dispute, claim or difference arising out of or in relation to your employment
will be settled exclusively by binding arbitration administered by the American
Arbitration Association under its National Rules for the Resolution of
Employment Disputes before a single arbitrator. The Executive expressly
understands and agrees that claims subject to arbitration under this section
include asserted violations of the Employee Retirement and Income Security Act
of 1974; the Age Discrimination in Employment Act; the Older Worker’s Benefit
Protection Act; the Americans with Disabilities Act; Title VII of the Civil
Rights Act of 1964 (as amended); the Family and Medical Leave Act; and any law
prohibiting discrimination, harassment or retaliation in employment, whether
based on federal, state or local law; any claim of breach of contract, tort,
promissory estoppel or detrimental reliance, defamation, intentional infliction
of emotional distress; or the public policy of any state, or any other federal,
state or local law. The arbitration will be held in New York, New York unless
you and the Company (each a “Party,” and jointly, the “Parties”)
mutually agree otherwise.  To the extent
permitted by law, each Party will bear its own costs and fees of the
arbitration, and other fees and expenses of the arbitrator will be borne
equally by the Parties; provided, however, that the arbitrator will be empowered to require
any one or more of the Parties to bear all or any portion of fees and expenses
of the Parties and/or the fees and expenses of the arbitrator in the event that
the arbitrator determines such Party has acted in bad faith.  The arbitrator will have the authority to
award any remedy or relief that a court of the State of New York could order or
grant.  The decision and award of the
arbitrator will be binding on all Parties. 
Either Party to the arbitration may seek to have the ruling of the
arbitrator entered in any court having jurisdiction thereof.  Each Party agrees that it will not file suit,
motion, petition or otherwise commence any legal action or proceeding for any
matter which is required to be submitted to arbitration as contemplated herein,
except in connection with the enforcement of an award rendered by an arbitrator
and except to seek the issuance of an injunction or temporary restraining order
pending a final determination by the arbitrator.

 

 

 

 

 

15.           Post-Termination
Cooperation.  As is
required of you during employment, you agree that during and after employment
with the Company you will, without expense or additional compensation to you,
cooperate with the Company or any Affiliate in the following areas:

 

15.1                           Cooperation With the Company. 
You agree [a] to be reasonably available to
answer questions for the Company’s (or any Affiliate’s) officers regarding any
matter, project, initiative or effort for which you were responsible while
employed by the Company and [b] to
cooperate with the Company (and with any Affiliate) during the course of all
third-party proceedings arising out of the Company’s (or any Affiliate’s)
business about which you have knowledge or information.  For purposes of this Agreement, [c] “proceedings” includes internal investigations,
administrative investigations or proceedings and lawsuits (including pre-trial
discovery and trial testimony) and [d] “cooperation”
includes [i] your  being
reasonably available for interviews, meetings, depositions, hearings and/or
trials without the need for subpoena or assurances by the Company (or any
Affiliate), [ii] providing any and all
documents in your possession that relate to the proceeding, and [iii] providing assistance in locating any and all
relevant notes and/or documents.

 

15.2                           Cooperation With Media. 
You agree not to communicate with, or give statements to, any member of
the media (including print, television or radio media) relating to any matter
(including pending or threatened lawsuits or administrative investigations)
about which you have knowledge or information (other than knowledge or
information that is not Confidential Information as defined in Section 8.2)
as a result of employment with the Company. 
You also agree to notify the Chief Executive Officer or his designee
immediately after being contacted by any member of the media with respect to
any matter affected by this section.

 

16.           Entire Agreement.  This Agreement constitutes your entire
agreement with the Company relating to the subject mater hereof, and superseded
in its entirety any and all prior agreements, understandings or arrangements
with the Company.

 

17.           Governing Law.  All issues and questions concerning the
construction, validity, enforcement and interpretation of this Agreement shall
be governed by, and construed in accordance with, the laws of the State of New
York.

 

18.           Survival of Provisions.
 Sections 8 to 12, 14, 15, 17 and 18
will survive the termination of your employment for any reason and shall not be
affected by any transfer(s) between the Company and its Affiliate(s).

 

19.           Understandings and
Representations.  You
should not sign this Agreement until you understand its terms and
conditions.  Your execution of this
Agreement represents your acknowledgement that you have take all steps you
believe necessary, including consultation with financial and/or legal advisors
of your choice, to understand this Agreement.

 

	
  Sincerely,

  	
   

  	
   

  

 

 

 

 

	
  By:

  	
  /s/ Ronald Ristau

  	
   

  	
  Dated:

  	
  May 3, 2006

  
	
  Name:

  	
  Ronald Ristau

  	
   

  	
   

  	
   

  
	
   

  	
  COO/CFO

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  /s/ Sheamus Toal

  	
   

  	
  Dated:

  	
  May 3, 2006

  
	
   

  	
  Sheamus Toal

  	
   

  	
   

  	
   

  
	
   

  	
  Vice President,
  Corporate Controller/Treasurer

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