Attached files
file | filename |
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10-K - 10-K - Kate Spade & Co | kate-20161231x10k.htm |
EX-99 - EX-99 - Kate Spade & Co | kate-20161231xex99.htm |
EX-32.(C) - EX-32.(C) - Kate Spade & Co | kate-20161231ex32ca6406b.htm |
EX-32.(B) - EX-32.(B) - Kate Spade & Co | kate-20161231xex32b.htm |
EX-32.(A) - EX-32.(A) - Kate Spade & Co | kate-20161231xex32a.htm |
EX-31.(C) - EX-31.(C) - Kate Spade & Co | kate-20161231ex31c8d1a47.htm |
EX-31.(B) - EX-31.(B) - Kate Spade & Co | kate-20161231xex31b.htm |
EX-31.(A) - EX-31.(A) - Kate Spade & Co | kate-20161231xex31a.htm |
EX-23 - EX-23 - Kate Spade & Co | kate-20161231xex23.htm |
EX-21 - EX-21 - Kate Spade & Co | kate-20161231ex21260f546.htm |
EX-10.(A) - EX-10.(A) - Kate Spade & Co | kate-20161231ex10a1775ea.htm |
EXHIBIT 10(l)
kate spade & company
EXECUTIVE SEVERANCE AGREEMENT
This Executive Severance Agreement (this “Agreement”), effective as of January 1, 20[ ] (the “Effective Date”), is by and between Kate Spade & Company (the “Company”), a Delaware corporation, and [ ] (the “Executive”).
WHEREAS, the Compensation Committee of the Board of Directors of the Company (the “Compensation Committee”) has determined that appropriate steps should be taken to reinforce and encourage the continued attention and dedication of the Executive to his or her assigned duties in the face of possible distraction of the Executive by virtue of the personal uncertainties and risks created by the possibility of termination of, or adverse change to, his or her employment;
WHEREAS, the Compensation Committee believes it is in the Company’s best interests to ensure that the Executive will refrain from certain competitive activities with the Company and its affiliates as described herein; and
NOW, THEREFORE, to assure the Company it will have the continued undivided attention and services of the Executive and the availability of his or her advice and counsel, and to induce the Executive to remain in the employ of the Company hereinafter, for the benefit of the Company, and for other good and valuable consideration, the Company and the Executive agree as follows:
ESA(2)
(iv) the Executive’s material breach of a written policy of the Company or the rules of any governmental or regulatory body applicable to the Company. |
For purposes of this Section 2, no act, or failure to act, on the Executive’s part shall be deemed “willful” or “intentional” unless done, or omitted to be done, by the Executive without reasonable belief that the Executive’s action or omission was in the best interests of the Company.
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(d) Change in Control. For purposes of this Agreement, a “Change in Control” of the Company shall be deemed to have occurred upon the happening of any of the following events: (i) any “person,” including a “group,” as such terms are defined in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended, and the rules promulgated thereunder, becomes the beneficial owner, directly or indirectly, whether by purchase or acquisition or agreement to act in concert or otherwise, of 35% or more of the outstanding shares of common stock of the Company to an unaffiliated third party; (ii) the sale of all or substantially all of the assets of the Company; or (iii) the election or appointment during any 12-month period of a majority of the members of the Board of Directors of the Company whose election or appointment is not endorsed by a majority of the members of the Board prior to the date of the appointment or election. |
4. Severance. |
(b) Termination Due to Death or Disability. In the event that the Executive’s employment is terminated due to the Executive’s death or Disability: |
(ii) the Executive shall be eligible for a pro-rated bonus (“Pro-Rated Bonus”) in respect of the Company’s fiscal year during which the termination occurs based on (x) the Company’s actual performance as determined pursuant to the provisions of the Company’s relevant bonus plan and (y) a fraction, the numerator of which is the number of whole months in the fiscal year prior to the date on which the Executive’s employment terminates and the denominator of which is twelve (12), payable at the time bonuses would otherwise be paid pursuant to the applicable bonus plan (which shall be within the “short-term deferral” period set forth in Section 409A of the Internal Revenue Code of |
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1986, as amended, and the regulations and guidance promulgated thereunder (the “Code”)). |
(c) Performance-Based Termination. If a Performance-Based Termination occurs then, subject to Section 4(g): |
(ii) the Company shall provide Benefits Continuation for the Executive and the Executive’s family, as provided in Section 4(e) below; |
The payments and benefits set forth in Section 4(c)(ii)-4(c)(iv) are contingent on the Executive’s execution, delivery and non-revocation of the Release as provided for in Section 4(g). Payments pursuant to Section 4(c)(iv) shall commence on the 60th day following the Executive’s date of termination of employment and (B) within 14 calendar days following this payment commencement date, salary continuation payments relating to the first 60 days shall be paid in a lump sum. Notwithstanding the foregoing, if, and only to the extent required to avoid the imputation of any tax, penalty or interest pursuant to Section 409A of the Code, the aggregate payments pursuant to Section 4(c)(iv) (excluding those payments that constitute short-term deferrals under Code Section 409A) shall be reduced to the amount that is one dollar less than the maximum amount payable pursuant to a "separation pay plan" for separation pay due to involuntary separation from service as set forth in Section 409A of the Code and the regulations promulgated thereunder (the “Performance Severance Payment Limit”). The Company shall, in its sole discretion, determine if the amounts payable pursuant to Section 4(c)(iv) are in excess of the Performance Severance Payment Limit. In determining the aggregate payments pursuant to Section 4(c)(iv) subject to reduction, such amount shall be determined prior to giving effect to any deductions relating to the Executive’s portion of the premiums applicable to the Benefits Continuation. The Executive shall have no rights to receive any payments in excess of the Performance Severance Payment Limit.
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(ii) the Company shall provide Benefits Continuation for the Executive and the Executive’s family, as provided in Section 4(e) below; |
Payments pursuant to Section 4(d)(iii) shall be made in a single lump sum on the 60th day following the Executive’s date of termination of employment, subject to the Executive’s execution, delivery and non-revocation of the Release as provided for in Section 4(g). For the purposes of this Agreement, “Good Reason” shall mean the occurrence of one or more of the following events: (1) The Executive experiences a material diminution in duties or responsibilities, without the Executive’s consent (provided that a change in reporting structure shall not be deemed a diminution in duties or responsibilities); (2) the Company moves its principal executive offices by more than 100 miles (provided that such move increases the Executive’s commuting distance by more than 100 miles); (3) a material reduction in the Executive’s base salary; or (4) a material breach by the Company of any of its material obligations under any employment agreement between the Executive and the Company then in effect; provided, however, that no event or condition shall constitute Good Reason unless (x) the Executive gives the Company a written notice of termination for Good Reason no fewer than 30 days prior to the date of termination and not more than 90 days after the initial existence of the condition giving rise to Good Reason, and (y) the grounds for termination (if susceptible to correction) are not corrected by the Company within 30 days of its receipt of such notice.
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Protection and Affordable Care Act (PPACA), the parties agree to modify this Agreement so that it complies with the terms of those non-discrimination rules without impairing the economic benefit to the Executive. |
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(a) the Company shall pay to the Executive an amount equal to the Executive’s Accrued Salary; and |
(b) the Company shall continue to pay to the Executive his or her base salary at the then-current rate for a period of [ ] weeks, payable in accordance with the Company’s ordinary payroll practices, following the Executive’s termination. |
The payments and benefits set forth in Section 5(b) are contingent on the Executive’s execution, delivery and non-revocation of a Release as provided for in Section 4(g). Payments pursuant to Section 5(b) shall commence on the 60th day following the Executive’s date of termination of employment and, within 15 business days following this payment commencement date, salary continuation payments relating to the first 60 days shall be paid in a lump sum. For the avoidance of doubt, the Executive shall not be eligible for the payments set forth in Section 5(b) if the Executive’s employment is terminated for Cause.
6. Confidentiality. |
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United States Securities and Exchange Commission or any other federal, state or local governmental agency or commission (“Government Agencies”) or otherwise participate in any investigation or proceeding that may be conducted by any Government Agency, including providing documents or other information, without notice to the Company. This Agreement does not limit Executive’s right to receive an award for information provided to any Government Agency. |
(g) The provisions of this Section 6, unless otherwise noted, shall survive the termination of this Agreement and the expiration of the Employment Period. |
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(c) The Executive agrees that, during the Restricted Period, the Executive shall not, directly or indirectly: |
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As used in this Section 7, the terms “customer” and “supplier” shall mean and include any individual, proprietorship, partnership, corporation, joint venture, trust or any other form of business entity which is then a customer or supplier, as the case may be, of the Company or which was such a customer or supplier at any time during the one-year period immediately preceding the date of termination of employment.
(e) The Executive agrees not to publicly or privately make or publish any statement (oral or written) that would disparage, criticize or defame the Company or its affiliates or their executives or directors, and the Executive will do his or her best to ensure that the Executive’s family members, agents or representatives also do not publicly or privately make or publish any statement (oral or written) that would disparage, criticize or defame the Company or its affiliates or their executives or directors. |
(f) The provisions of this Section 7 shall survive the termination of this Agreement and the expiration of the Employment Period. |
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10. Notices. All notices required or permitted hereunder will be given in writing by personal delivery; by confirmed facsimile transmission; by express delivery via any reputable express courier service; or by registered or certified mail, return receipt requested, postage prepaid. Any notice to the Company shall be addressed to the Chief Executive Officer of Kate Spade & Company, Two Park Avenue, New York, New York 10016, with a copy to the General Counsel, Kate Spade & Company, Inc., 5901 West Side Avenue, North Bergen, New Jersey 07047, or at such other address as the Company may hereafter designate to the Executive by notice as provided in this Section 10. Any notice to be given to the Executive shall be addressed to the Executive’s home address of record, or at such other address as the Executive may hereafter designate to the Company by notice as provided herein. Notices which are delivered personally, by confirmed facsimile transmission, or by courier as aforesaid, will be effective on the date of delivery. Notices delivered by mail will be deemed effectively given upon the fifth calendar day subsequent to the postmark date thereof. |
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shall be entitled to seek injunctive relief from a court of competent jurisdiction without any requirement to first seek arbitration. The parties hereto agree that any arbitral award may be enforced against the parties to an arbitration proceeding or their assets wherever they may be found. In the event that (i) the Executive makes a claim against the Company under this Agreement; (ii) the Company disputes such claim, and (iii) the Executive prevails with respect to such disputed claim, then the Company shall reimburse the Executive for the Executive’s reasonable costs and expenses (including reasonable attorneys’ fees) incurred by the Executive in pursuing such disputed claim. |
(g) The Section headings contained herein are for purposes of convenience only and are not intended to define or list the contents of the Sections. |
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[Signature Page, Kate Spade & Company Executive Severance Agreement]
IN WITNESS WHEREOF, the parties have caused this Agreement to be executed and delivered as of the day and year first above set forth.
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KATE SPADE & COMPANY
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Date: ___________________ |
By:___________________ |
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EXECUTIVE
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Date: ___________________ |
By:___________________ |
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EXHIBIT A
LIST OF COMPETING BUSINESSES
Burberry, Coach, J. Crew, Marc Jacobs, Michael Kors and subsidiary brands, Polo/Ralph Lauren, Tory Burch, Cole Haan, DVF, Dooney and Burke, Paul Smith, Rebecca Minkoff and Stuart Weitzman.
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