Exhibit 10.1
EMPLOYMENT AGREEMENT
BETWEEN
HAMPSHIRE GROUP, LIMITED
AND
JEFFREY MEIER
THIS
AGREEMENT made and entered into as of the 14th day of September,
2006
(the "Effective Date") by and between Hampshire Group, Limited, a
Delaware
corporation, with offices at 1924 Pearman Dairy Road, Anderson, SC
29622
("Hampshire Group" or the "Company"), and Jeffrey Meier, an
individual residing
at 12 Ophir Drive, Purchase, NY 10577 ("Meier").
WHEREAS, Hampshire Group is the parent corporation for a number of
apparel
businesses, including Hampshire Designers, Inc. ("Hampshire
Designers");
WHEREAS, Meier currently serves as the Executive Vice President
Global
Sourcing of Hampshire Designers;
WHEREAS, Hampshire Group desires for Meier to assume the role of
Senior
Vice President Global Sourcing at the Hampshire Group level,
thereby assuming
responsibility for global sourcing at all of Hampshire Group's
businesses; and
WHEREAS, Meier desires to become Senior Vice President Global
Sourcing of
Hampshire Group upon the terms and conditions stated in this
Agreement.
NOW
THEREFORE, in consideration of the premises, mutual covenants,
conditions and promises in this Agreement, the parties hereto agree
as follows:
1.
Employment. Subject to the terms and conditions contained herein,
Meier
will serve as Senior Vice President Global Sourcing of the Company
and, in such
capacity, will report directly to the Chief Executive Officer of
the Company and
will be responsible for such things as (i) product development and
costing, (ii)
production planning and control, including vendor sourcing and
allocations,
(iii) product quality assurance, (iv) technical design, (v) social
compliance,
(vi) customs compliance, (vii) first sale compliance and (viii)
import
logistics. The parties agree that this list of responsibilities is
for
illustrative purposes only and is subject to change.
2.
Term. The terms of this Agreement shall apply for fiscal year 2006
and
for each fiscal year thereafter unless sooner terminated as herein
provided.
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3.
Salary. As compensation for his services, Meier will be paid a
base
salary of Three Hundred and Six Thousand Dollars ($306,000.00) per
annum,
payable in monthly installments less appropriate withholdings and
deductions
required by law.
4.
Signing Bonus. On the first regularly scheduled payroll date after
the
Effective Date, Meier shall be paid a one-time bonus in the amount
of $187,500,
less appropriate withholdings and deductions required by law.
5.
Annual Bonus.
(A) For 2006, Meier shall be entitled to an Annual Bonus based
upon
the Bonus Program for Hampshire Designers set forth on Exhibit 1
attached
hereto. For future years, the company and Meier shall establish a
mutually
acceptable bonus program based on the performance of Hampshire
Group.
(B) The Company agrees to pre-pay annually, on a calendar year
basis,
to Meier Twenty Five Thousand Dollars ($25,000) of the anticipated
Annual Bonus
("Pre-Paid Bonus"), which amount will be made in equal monthly
installments of
Two Thousand Eighty Three Dollars and Thirty Three Cents
($2083.33), less
appropriate withholdings and deductions required by law. In the
event the Annual
Bonus earned by Meier in any given year ("Actual Amount") is less
than the
Pre-Paid Bonus for that year, such shortfall shall be deducted from
succeeding
years' Annual Bonus.
6.
Benefits. Meier shall be entitled to participate in group
insurance
plans, pension and other employee benefits provided to other senior
executives
of the Company on terms no less favorable than those available to
such senior
executives of the Company. In addition, during the term hereof, the
Company
shall pay Meier up to an additional $1,200.00 on a monthly basis,
less
appropriate withholdings and deductions required by law, toward the
cost of a 15
year term life insurance policy with a $750,000 death benefit for
the benefit of
his surviving spouse or such individual or organization designated
by Meier. For
the avoidance of doubt, Meier will be the owner of this policy and,
accordingly,
he may take it with him upon the termination of this Agreement.
7.
Termination.
(A) The Company may terminate the employment relationship at any
time
for any reason. If Meier's employment is terminated by the Company
for any
reason other than for cause (other than by reason of Meier's
"disability"
(within the meaning of the Company's long-term disability policy)),
Meier shall
be paid severance in the amount of One Hundred Fifty Thousand
Dollars
($150,000), payable in monthly installments of Twenty Five Thousand
Dollars
($25,000) less appropriate withholdings and deductions required by
law. In
addition, if Meier is terminated during any fiscal quarter other
than the first
fiscal quarter of a given year, he will also be entitled to receive
a pro rata
portion of any Annual Bonus he would otherwise have been entitled
to receive
under Paragraph 3(A) hereof, less appropriate withholdings and
deductions
required by law; such pro rata amount will be paid after year end
in accordance
with the Company's customary payroll practices and will be
calculated by
multiplying the Annual Bonus he would otherwise have been entitled
to receive
under Paragraph 3(A) hereof by a
2
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fraction, the numerator of which is the number of completed full
months in the
current fiscal year through the date of termination (by way of
example, if Meier
is terminated
