Letter Agreement Regarding Termination and Continued Employment between Cygne Designs, Inc. and Bernard Manuel
Cygne Designs, Inc. and Bernard Manuel have agreed to terminate his prior employment agreement, including non-competition terms, effective May 1, 2008. Mr. Manuel will resign as CEO and President but remain as a director and chairman until at least October 31, 2008, and as an employee advising on international sourcing until January 31, 2010, primarily by phone. He will receive $12,500 per month and continued health insurance. Upon ending his employment, he will receive $1.2 million in severance, paid in 12 quarterly installments starting February 15, 2010.
Exhibit 10.1
CYGNE DESIGNS
April 25, 2008
Mr. Bernard Manuel
775 Park Avenue
New York, New York
Dear Mr. Manuel:
Reference is made to that certain amended and restated employment agreement, dated as of January 1, 1995, by and between Cygne Designs, Inc. (“Cygne”) and you (the “Employment Agreement”). This letter sets forth our respective understandings regarding your continued employment by the Company.
Effective as of May 1, 2008:
the Employment Agreement (including without limitation the non-competition provisions thereof) is hereby terminated and of no further force and effect;
you will continue to serve as a director and chairman of the Board of Directors of the Company until October 31, 2008, and thereafter until either the Company requests that you resign as a director or you resign, upon thirty (30) days prior written notice to the Company;
you hereby resign as Chief Executive Officer and President of the Company, but you will remain an employee of the Company through January 31, 2010, advising the Company’s senior executive officers with respect to international sourcing. It is expected that your service will be provided telephonically at such times as are mutually convenient. For these services the Company will pay you $12,500 per month, payable at the times and in the manner the Company pays its other employees, and you will continue to participate, at the Company’s expense, in the Company’s health insurance plan that he is currently participating in or in such other similar plan of your choice; and
in recognition of your past services to the Company and your agreement to forego bonuses and contractually mandated annual salary increases for over ten years, upon termination of your employment the Company will pay you severance in the amount of $1,200,000, payable in 12 equal quarterly installments of $100,000, with the first payment commencing on February 15, 2010.
If this agreement correctly sets forth our understanding, please sign the enclosed copy of this letter and return it.
Very truly yours,
/s/ Roy E. Green
Cygne Designs, Inc.
Roy E. Green, CFO
ACCEPTED AND AGREED:
/s/ Bernard Manuel
Bernard Manuel
11 West 42nd Street 9th Floor New York NY 10036 Tel ###-###-#### Fax ###-###-#### Email ***@***
