Exhibit 10.1
August 6, 2008
Ms. Christine Beauchamp
240 Centre Street, Apt. 5A
New York, NY 10013
Dear Christine,
We are very pleased to offer you an
opportunity to join Ann Taylor (the “Company”) in the
position of President, Ann Taylor Stores, reporting directly to Kay
Krill. By joining our organization, you will be contributing to our
mission of providing updated classic clothing which addresses the
ever-evolving lifestyles of women through all of our
divisions.
Your anticipated start date is
August 11, 2008. Specific terms and conditions of this offer
are as follows:
Compensation
|
•
|
|
Your starting annual salary will
be $800,000, to be paid semi-monthly.
|
|
•
|
|
Fiscal Year 2008 bonus
eligibility will be 70% of your base salary, prorated from your
date of hire. Under the 2008 Ann Taylor Incentive Plan, the bonus
is based on seasonal results and paid on a seasonal basis for
associates in your position. Associates hired after May 31 are
not eligible for Spring results payout which is made in September,
and associates hired after November 30 are not eligible for
the Fall results payout which is made in March. This potential
bonus will be determined by corporate or division operating profit
targets under the Ann Taylor Incentive Plan with payout to be paid
at the sole discretion of the Company.
|
|
•
|
|
On your start date, we are
granting you 50,000 stock options. These options vest over a three
(3) year period with 16,666 vesting on the first anniversary
date of the grant and 16,667 vesting on the second and third
anniversary dates of the grant, provided that you are still
employed by the Company on the anniversary dates. You will receive
a letter outlining the terms of the grant within 30 days from your
hire date.
|
|
•
|
|
On your start date, we are also
granting you 25,000 shares of Restricted Common
Stock. These shares vest over a three (3) year period
with 8,333 vesting on the first and second anniversary dates of the
grant and 8,334 vesting on the third anniversary date of the grant,
provided that you are still employed by the Company on the
anniversary dates. You will receive a letter outlining the terms of
the grant within 30 days from your hire date.
|
|
•
|
|
You will be eligible in 2009 and
thereafter to participate in stock options and restricted stock
programs. Exact grant amounts will be determined during future
grant cycles.
|
|
•
|
|
You are eligible to participate
in the restricted cash feature of the Ann Taylor Incentive Plan for
the Fall Season of Fiscal Year 2008, with a target of 42.5% of your
base salary, prorated from your date of hire. Under this
feature, the bonus is based on seasonal results. It is
anticipated that this potential bonus will be determined by
corporate operating profit targets under the Ann Taylor Incentive
Plan. If
|
|
|
the bonus is earned, it is mandatory
that the payout be deferred for a 3 year period. During the 3 year
period, the final value of the deferral will be based on the
average growth or decline of corporate net income. If you are not
employed on the date of the payout at the end of the 3 year period
you wil
|
|
