Attached files
file | filename |
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10-K - HANCOCK FABRICS INC | v179146_10k.htm |
EX-21 - HANCOCK FABRICS INC | v179146_ex21.htm |
EX-32. - HANCOCK FABRICS INC | v179146_ex32.htm |
EX-10.9 - HANCOCK FABRICS INC | v179146_ex10-9.htm |
EX-23.1 - HANCOCK FABRICS INC | v179146_ex23-1.htm |
EX-31.1 - HANCOCK FABRICS INC | v179146_ex31-1.htm |
EX-31.2 - HANCOCK FABRICS INC | v179146_ex31-2.htm |
EX-10.30 - HANCOCK FABRICS INC | v179146_ex10-30.htm |
EXHIBIT 10.4
Transition
Agreement
This
Agreement establishes the understanding between Hancock Fabrics, Inc. (the
“Company” as herein defined) and Linda Gail Moore (the “Executive”) as of this
date, July 20, 2009, regarding the provisions of her Transition.
1.
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The
Transition Period shall run for 26 weeks beginning Monday, July 20, 2009
and ending Friday, January 22,
2010.
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2.
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During
the course of the Transition Period, the Executive will remain an employee
of the Company unless termination occurs earlier by Resignation or
Discharge for Cause as described herein. As an employee, the
Executive will retain the title held at the time of this Agreement until a
successor is hired, and continue to be eligible for benefits and be bound
by the policies, procedures and rules of conduct as other similarly
situated employees except as otherwise stated in this
Agreement.
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3.
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The
Executive will make herself available to the Company to perform such
services as may be required. During the term of the Transition
Period, the Executive will be provided suitable office facilities, but
need not present herself at the offices of the Company nor at any other
specified location, unless otherwise requested by the
Company. The Executive also agrees to provide to the Company,
upon request, (i) information concerning her employment with the
Company, and (ii) reasonable assistance relating to her previous
employment with the Company, including but not limited to providing
truthful testimony in any legal action pursued or defended by the Company
in which she has information or
knowledge.
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4.
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Throughout
the end of the Transition Period, the Executive shall be paid her salary
that was in effect at the time of this Agreement, at regular payroll
dates, unless Discharged for Cause as described herein. It is understood
and agreed that the salary payments, regardless of duration, encompass (i)
earned vacation, holidays, sick pay and any other form of paid time off,
and (ii) any monetary bonus, incentive or award that the Executive had or
would earn or be entitled to either prior to or during the Transition
Period.
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5.
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Through
the earlier of the termination of employment or the end of the Transition
Period, the Executive and her eligible dependents shall be able to
actively participate in the Medical, Flexible Spending Account, Dental,
Life Insurance, Short Term Disability, Long Term Disability and Hancock
Fabrics Retirement Savings (401(k)) Plan in accordance with the respective
plan rules.
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6.
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During
the Transition Period, the Executive will not be eligible for merit or
other forms of increases in base salary. The Executive shall
not be a participant in the MOG Group Short or Long Term Incentive Plans
for 2009 or 2010. The provisions of the Change in Control
Agreement dated January 1, 2009 shall not be in effect unless the terms of
this Agreement are not honored by the successor owners following a Change
in Control.
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1
7.
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In
the event that the Executive begins other employment that is not
restricted by this Agreement, prior to the end of the Transition Period,
the Executive’s employment with the Company will terminate by
Resignation. However both the payments from the Company and the
Executive’s obligations under this Agreement shall continue for the
duration of the Transition Period.
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8.
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If,
prior to the end of the Transition Period, the Executive is Discharged for
Cause, no further payments will be paid by the Company to the Executive,
however the Executive’s obligations under this Agreement shall
continue.
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For
purposes of this Agreement, “Cause” shall mean any of the
following:
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·
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Theft,
dishonesty, willful misconduct, breach of fiduciary duty, falsification of
employment or Company records.
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·
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Willful
violation of any rule, law or regulation (excluding traffic citations and
similar offenses), or commission of an act involving moral
turpitude.
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·
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Intentional
failure to perform regular or assigned
duties.
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·
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Intentional
disclosure of Company’s confidential or proprietary
information.
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·
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Breach
of the Company’s Insider Trading
Policy.
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·
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Any
material breach of the Company’s Code of Business Conduct and
Ethics.
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·
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Material
violation of the obligations under this
Agreement.
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9.
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By
signing this Transition Agreement, the Executive agrees to release and
forever discharge Hancock Fabrics, Inc. and its parent corporations,
subsidiaries and affiliates, and their shareholders, officers, employees,
agents, representatives, independent contractors, successors, assigns and
benefit plans (the “Company”) from any and all claims, actions,
liabilities and suits, whether known or unknown, whether existing now or
arising, accruing, or maturing later, arising out of anything that has
occurred up through the date this Transition Agreement is signed, or end
of the Transition Period, whichever is later, including but not limited to
any claims that arise from the Executive’s employment with the Company,
but excluding any claim for vested benefits from a retirement plan in
which she was a participant.
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10.
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Without
limiting the generality of the foregoing, the Executive agrees that, by
signing this Transition Agreement, she is releasing and waiving any and
all claims that she ever had or may have as of the date this Transition
Agreement is signed or the end of the Transition Period, whichever is
later, for age discrimination under the Age Discrimination in Employment
Act, 29 U.S.C. Sec.Sec. 621, et seq. The
Executive is advised to consult with an attorney before signing this
Transition Agreement; that the consideration the Executive receives in
exchange for signing this Transition Agreement is in addition to amounts
to which the Executive was already entitled; and that the Executive may,
before signing this Transition Agreement, consider this Transition
Agreement for a period of 21 calendar days. After such
21-day period, the offer contained in this letter is
withdrawn. By signing this Agreement, the Executive indicates
that she has used as much of the 21 calendar day period as needed or
desired. The Executive may revoke this Transition Agreement
within 7 calendar days from the date of the signing of this Transition
Agreement. This Transition Agreement is not effective until 7
calendar days following its
signing.
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11.
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The
Executive acknowledges that information, observations and data obtained by
her while employed by the Company (“Confidential Information”) are the
property of the Company. By signing this Transition Agreement,
the Executive agrees not to disclose to any unauthorized person, or use
for her own purpose, any Confidential Information without the prior
written consent of the Company, unless and to the extent that the
aforementioned matters become generally known to and available for use by
the public other than as a result of the Executive’s acts or
omissions.
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12.
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The
Executive acknowledges that all inventions, innovations, improvements,
developments, methods, designs, analyses, drawings, reports and all
similar or related information (whether patentable or not) which relate to
the Company’s actual or anticipated business, research and development or
existing or future products or services and which are conceived, developed
or made by the Executive while employed by the Company (“Work Products”)
belong to the Company. The Executive shall promptly disclose
such Work Products to the Company and perform all actions reasonably
requested by the Company (whether during or after employment) to establish
and confirm such ownership.
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13.
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Notwithstanding
the obligations set forth in the above two paragraphs, after termination
of employment with the Company, the Executive is free to use Residuals of
the Company’s Confidential Information and Work Products for any purpose
subject only to the obligations with respect to disclosure set forth
herein and any copyrights of patents of the Company. The term
“Residuals” means information in non-tangible form that may be retained in
the Executive’s unaided memory derived from the Company’s Confidential
Information and Work Product to which the Executive had access during her
employment with the Company. The Executive may not retain or
use the documents and any other tangible materials containing the
Company’s Confidential Information or Work Product after the termination
of employment with the Company.
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14.
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The
Executive agrees that for the duration of the Transition Period, she will
not directly or indirectly own any interest in, manage, control,
participate in, work for, consult with or render any services for any
Material Competitor of the Company. “Material Competitor” is
defined as a retailer of both fabrics and home décor items on a national
or multi-state scale. Examples of such competitors include, but
are not limited to Jo-Ann Stores, Hobby Lobby and
Michaels. Nothing in this paragraph shall prohibit the
Executive from being a passive owner of not more than 2% of the
outstanding stock of any class of a corporation which is publicly traded
so long as there is no active participation in the business of such
corporation. The Company reserves the right to enforce this
provision in any state in which it is
enforceable.
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15.
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The
Executive agrees that for the duration of the Transition Period, she will
not directly or indirectly through another entity 1) induce or attempt to
induce any employee of the Company to leave the employ of the Company or
in any way interfere with the relationship between the Company and any
employee thereof, 2) hire any person who was an employee of the Company at
any time of his/her employment history, or 3) induce or attempt to induce
any customer, supplier, licensee, licenser, franchisee or other business
relation of the Company to cease doing business with the Company or in any
way interfere with the relationship between such supplier, licensee,
licenser, franchisee or other business relation and the Company
(including, without limitation, making negative statements or
communications about the Company).
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16.
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To
the extent that the Executive has a grant(s) of restricted stock under the
Hancock Fabrics, Inc. Stock Incentive Plan, in which some or all of the
shares are not vested as of the date of this Agreement, the Company will
pay the Executive the cash equivalent of the fair market value of her
unvested, outstanding, restricted stock grants that would have vested as
of the end of the Transition Period. The Company will pay this
amount in a single lump-sum
payment.
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17.
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This
Transition Agreement contains the entire understanding between the
Executive and the Company concerning the Executive’s employment during the
Transition Period and termination of employment and may only be amended by
a written instrument signed by both
parties.
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For the
Company:
/s/ Jane Aggers
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July 20, 2009
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Jane
Aggers, President & CEO
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Date
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For
the Executive:
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/s/ Linda G. Moore
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July 22, 2009
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Linda
Gail Moore, SVP Merchandising
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Date
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4