EXHIBIT 10.14
October 12, 1998
Mr. Jeffrey Galin
10600 Wilshire Blvd.
Apt. 309
Los Angeles, California 90024
Dear Jeffrey:
We are pleased to confirm our offer of continued employment with G+G
Retail, Inc. (the "Company") on the following terms and conditions:
1. You will continue to be employed as a Vice President/Merchandise
Manager of the Company reporting to the Company's President and
Chief Operating Officer and to its Chairman and Chief Executive
Officer.
2. You will be paid a base salary at the rate of $205,000 per year.
Such base salary will be reviewed yearly and may be subject to
increases, in the Company's discretion, based, among other things,
upon your performance and the Company's results of operation. You
will also be eligible to participate during the period of your
employment in any incentive bonus plans which the Company may adopt
for employees of your level.
3. The Company will continue to provide you with use of an automobile
and pay your reasonable business related automobile expenses
consistent with the Company's automobile and expense policies as in
effect from time to time.
4. You will continue to be eligible to participate in the Company's
group medical and hospitalization insurance plans and its retirement
plans as in effect from time to time during the period of your
employment.
5. Your employment by with Company will be "at will" and may be
terminated by the Company or by you at any time, with or without
"cause", for any reason or for no reason. If your employment is
terminated by the Company without cause, then the Company will pay
to you as severance (and in lieu of any other benefits, compensation
or payments of any kind by reason of the termination of your
employment) the following: (a) an amount equal to your base salary
at your then current rate payable in installments in accordance with
the Company's normal payroll schedule for a period of one year (the
"Severance Period"), and (b) provided that you elect to continue
your coverage under the Company's medical and hospitalization
insurance benefits under the Company's group plans in accordance
with your rights
under the Consolidated Omnibus Budget and Reconciliation Act of
1985, as amended ("COBRA"), the Company will waive or pay on your
behalf the portion of the premiums for such continuation coverage
which equals the portion of such premiums which would otherwise have
been paid by the Company had you continued in the Company's employ
for the Severance Period or until you obtain other employment which
offers medical and hospitalization coverage to you (whether or not
you accept such coverage.) As used above, the term "cause" means any
willful, intentional or negligent act or omission by you which has
the effect of injuring the business or reputation of the Company and
includes your resignation or other voluntary termination of your
employment, your failure or refusal to perform your duties and
obligations to the Company or to comply with a reasonable
instruction of any of the Company's President or Chairman or your
commission of a crime under any state or federal laws.
The Company agrees that your principal place of employment shall be
located in the Los Angeles Metropolitan Area (although you may be
required, from time to time, to travel in the performance of your
duties) and that, if the Company shall nonetheless require that you
relocate your principal place of business outside of the Los Angeles
Metropolitan Area, unless you shall consent to such relocation, the
Company shall be deemed to have terminated your employment hereunder
without cause.
6. During the Severance Period you shall not for yourself or on behalf
of any other person, partnership, corporation or entity, directly or
indirectly, or by action in concert with others (a) solicit, induce,
or encourage any person known to you to be an employee of the
Company or any affiliate of the Company to terminate his or her
employment or other contractual relationship with the Company or any
of its affiliates, or (b) solicit, induce or encourage any customer,
supplier or other person known by you to have a contractual
relationship with the Company to discontinue, terminate, cancel or
refrain from entering into any clothing retail or other contractual
relationship with the Company or any of its affiliates.
7. During the period of your employment, you will necessarily have
access to information, knowledge and data concerning the Company,
its operations, business and affairs which is confidential and which
is not generally known to the public. You agree that you will not at
any time disclose or divulge any such confidential information to
any person firm or corporation except as may be required in
connection with the Company's business and affairs or otherwise by
law.
8. This letter is intended to supersede all prior understandings and
agreements regarding your employment by the Company. You acknowledge
that the Company has not made and you have not relied upon, any
representations, promises or inducements concerning the terms and
conditions of your employment except as provided above.
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If the foregoing is acceptable to you, please indicate your agreement by
signing below.
Very truly yours,
G+G RETAIL, INC.
By: /s/ Scott Galin
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ACCEPTED AND AGREED TO:
/s/ Jeffrey Galin
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Jeffrey Galin
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