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AMENDMENT TO EMPLOYMENT AGREEMENT BETWEEN CHEROKEE INC. AND HENRY STUPP

Employment Agreement Amendment

AMENDMENT TO EMPLOYMENT AGREEMENT BETWEEN CHEROKEE INC. AND HENRY STUPP | Document Parties: CHEROKEE INC | HENRY STUPP AND CHEROKEE INC You are currently viewing:
This Employment Agreement Amendment involves

CHEROKEE INC | HENRY STUPP AND CHEROKEE INC

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Title: AMENDMENT TO EMPLOYMENT AGREEMENT BETWEEN CHEROKEE INC. AND HENRY STUPP
Governing Law: California     Date: 1/31/2011
Industry: Apparel/Accessories     Sector: Consumer Cyclical

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Exhibit 10.3

 

AMENDMENT TO EMPLOYMENT AGREEMENT BETWEEN

CHEROKEE INC. AND HENRY STUPP

 

THIS AMENDMENT TO EMPLOYMENT AGREEMENT (this “ Amendment ”), is made and entered into on the 28th day of January, 2011, by and between Henry Stupp (“ Stupp ”) and Cherokee Inc., a Delaware corporation (the “ Company ”) with reference to the following facts:

 

WHEREAS , the Company and Stupp entered into the Employment Agreement dated as of August 26, 2010 (the “ Agreement ”);

 

WHEREAS , the Company and Stupp entered into a Stock Option Agreement dated as of August 26, 2010 (the “ Option Agreement ”); and

 

WHEREAS , the parties desire to amend the Agreement and the Option Agreement as set forth herein.

 

NOW THEREFORE , in consideration of the foregoing recitals and the mutual representations, warranties, covenants and promises contained herein, the adequacy and sufficiency of which are hereby acknowledged, the parties agree as follows:

 

1.              Amendment .  The Agreement is hereby amended as follows:

 

1.1            Section 3.4.a(ii) of the Agreement is hereby deleted and replaced in its entirety with the following:

 

Subject to the terms and conditions of this Agreement, Stupp agrees to purchase (x) on or before July 31, 2011, and the Company agrees to sell and issue to Stupp, that number of shares of the Company’s Common Stock (the “ First Subsequent Shares ”) equal to $400,000 (the “ First Subsequent Purchase Price ”) divided by the closing sales price of the Company’s Common Stock as reported on the Nasdaq Global Market on the date of such purchase and sale (the “ First Subsequent Purchase Date ”) and (y) on or before January 31, 2012, and the Company agrees to sell and issue to Stupp, that number of shares of the Company’s Common Stock (the “ Second Subsequent Shares ”, and together with the Initial Shares and the First Subsequent Shares, the “ Shares ”) equal to $400,000 (the “ Second Subsequent Purchase Price ”) divided by the closing sales price of the Company’s Common Stock as reported on the Nasdaq Global Market on the date of such purchase and sale (the “ Second Subsequent Purchase Date ”). Each of the First Subsequent Purchase Price and the Second Subsequent Purchase Price is payable by cash, check or wire transfer on the First Subsequent Purchase Date and the Second Subsequent Purchase Date, as applicable.  The per share price of the First Subsequent Shares and the Second Subsequent Shares shall be equal to the closing sales price of the Company’s Common Stock as reported on the Nasdaq Global Market on the First Subsequent Purchase Date or the Second Subsequent Purchase Date, as applicable.  Promptly after

 

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receipt of payment for the First Subsequent Purchase Price or the Second Subsequent Purchase Price, as the case may be, the Company shall deliver to Stupp a stock certificate representing the First Subsequent Shares and the Second Subsequent Shares, as applicable.

 

1.2            Section 3.4(b) of the Agreement is hereby deleted and replaced in its entirety with the following:

 

Registration Rights .  On or before February 28, 2011 the Company shall file with the Securities and Exchange Commission a registration statement, or registration statements if necessary, on an appropriate form(s) to effect the registration for resale of both the Initial Shares and the shares of Common Stock that may be acquired upon exercise of the Option (as defined below) (the “ Initial Registration Statement ”).  Following the Second Subsequent Purchase Date, the Company shall upon the written request of Stupp file with the Securities and Exchange Commission a registration statement, or registration statements if necessary, on an appropriate


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